NRS598.137. Representation that person has chance to receive prize.

      1.  A person shall not, in connection with the sale or lease or solicitation for sale or lease of any goods, property or service, represent that another person has a chance to receive a prize or item of value without clearly disclosing on whose behalf the contest or promotion is conducted and all conditions that a participant must meet.

      2.  A person who makes a representation described in subsection 1 must display, clearly and conspicuously, adjacent to the description of the item or prize to which it relates:

      (a) The actual retail value of each item or prize;

      (b) The number of each item or prize to be awarded; and

      (c) The odds of receiving each item or prize, expressed in whole numbers.

      3.  It is unlawful to make a representation described in subsection 1 if it has already been determined which items will be given to the person to whom the representation is made.

      4.  The provisions of this section do not apply if:

      (a) Participants are asked to complete and mail or deposit, at a local retail commercial establishment, an entry blank obtained locally or by mail, or to call in their entry by telephone; and

      (b) Participants are not asked to listen to a sales presentation.

      5.  Advertisements with representations made pursuant to subsection 1 that are broadcast by radio or television may be broadcast without the required disclosures, conditions and restrictions but must clearly broadcast the availability of such disclosures, conditions and restrictions to an interested person, without any charge, upon request.

      6.  This section does not create liability for acts of a publisher, owner, agent or employee of a newspaper, periodical, radio station, television station, cable television system or other video service network or other advertising medium for the publication or dissemination of an advertisement or promotion pursuant to this section if the publisher, owner, agent or employee did not know that the advertisement or promotion violated the provisions of this section.

      7.  For the purposes of this section, the actual retail value of an item or prize is the price at which substantial sales of the item were made in an area within the last 90 days, or if no substantial sales were made, the cost of the item or prize to the person on whose behalf the contest or promotion is conducted.

      (Added to NRS by 1989, 2195; A 2007, 1393)