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Would the nine giveaway disclosures required under Illinois law apply to an advertisement in our lobby for anyone to guess the number of jelly beans in a bowl? The person with the closest guess would win an iTune gift card. In other words, is that advertisement considered a written promotion? – IBA Compliance Connection

IBA Compliance Connection

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Would the nine giveaway disclosures required under Illinois law apply to an advertisement in our lobby for anyone to guess the number of jelly beans in a bowl? The person with the closest guess would win an iTune gift card. In other words, is that advertisement considered a written promotion?

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Yes, the Illinois Prizes and Gift Act’s disclosure requirements apply to the advertisement you described. You correctly noted that the Act requires nine disclosures for every written promotional prize offer. We are unaware of any regulatory guidance or court cases that clarify whether the exact advertisement you describe would be considered a written promotional prize offer. However, in our view, an advertisement for a prize giveaway constitutes a “written promotional prize offer” and is subject to the disclosure requirements.

We note that your advertisement also triggers the disclosure requirements in the Consumer Fraud and Deceptive Business Practices Act, which states that advertisements offering free prizes to consumers must clearly and conspicuously disclose all material terms and conditions relating to the offer.

For resources related to our guidance, please see:

  • Illinois Prizes and Gifts Act, 815 ILCS 525/25 (listing nine disclosures that a written promotional prize offer must contain in a clear and conspicuous statement at the outset of the offer)
  • Consumer Fraud and Deceptive Business Practices Act, 815 ILCS 505/2P (requires all material terms and conditions to be clearly and conspicuously disclosed)