IBA Compliance Connection

Your go to source for compliance!

We are holding a giveaway that is open to the public to give away a free tractor. No purchase is necessary, and participants do not need to be customers for a chance to win. Participants simply fill out a slip of paper providing their contact information, and we randomly select one winner. Are there any specific disclosures that we need to provide for this giveaway?

—

by

admin

Yes, the Illinois Prizes and Gifts Act requires nine specific disclosures to be made with any written promotional prize offer, and the Illinois Consumer Fraud and Deceptive Business Practices Act requires you to clearly and conspicuously disclose all material terms and conditions relating to the prize at the outset of the offer. In addition, if the tractor is valued at $600 or more, you must issue an IRS Form 1099-MISC to the prizewinner.

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)