We do not believe that the Prizes and Gifts Act would apply to the participation prizes you have described, unless receiving any of the prizes involves an element of chance. If winning the prizes does involve an element of chance, then the Act would require any written promotional prize offers to contain nine specific disclosures.
The Prizes and Gifts Act defines “prize” as “a gift, award, or other item or service of value that is offered or awarded to a participant in a real or purported contest, competition, sweepstakes, scheme, plan, or other selection process that involves an element of chance.” Consequently, if everybody who participates in your free workshop receives the same prize or no element of chance is involved in awarding the participation prizes, we do not believe the Prizes and Gifts Act would apply.
If an element of chance is involved, the Prizes and Gifts Act would require that any written promotional offers concerning the prize must contain the nine specific disclosures outlined in the resources below in a clear and conspicuous statement at the onset of the offer. If you do not intend to make any representations or written promotional offers concerning the participation prizes, then the Prizes and Gifts Act would not apply, even if an element of chance is involved.
For resources related to our guidance, please see:
- Prizes and Gifts Act, 815 ILCS 525/10 (“‘Prize’ means a gift, award, or other item or service of value that is offered or awarded to a participant in a real or purported contest, competition, sweepstakes, scheme, plan, or other selection process that involves an element of chance.”)
- Prizes and Gifts Act, 815 ILCS 525/20(b) (“A sponsor shall not represent that a person has won or unconditionally will be the winner of a prize or represent that he or she has won a prize, unless all of the following conditions are met:
(1) the person is given the prize without obligation;
(2) the person is notified at no expense to him or her within 15 days of winning the prize; and
(3) the representation is not false, deceptive, or misleading.”)
- Prizes and Gifts Act, 815 ILCS 525/30 (“A sponsor who represents that a person has been awarded a prize shall, not later than 30 days after making the representation, provide the person with:
(1) the prize;
(2) a voucher, certificate, or other document giving the person the prize; or
(3) the retail value of the prize, as stated in the written prize notice, in the form of cash, a money order, or a certified check.”)
- Prizes and Gifts Act, 815 ILCS 525/25 (“A written promotional prize offer must contain each of the following in a clear and conspicuous statement at the onset of the offer:
(1) the true name or names of the sponsor and the address of the sponsor’s actual principal place of business;
(2) the retail value of each prize the person receiving the notice has been selected to receive or may be eligible to receive;
(3) a disclosure that no purchase is necessary to enter such written promotional offer;
(4) a disclosure that a purchase will not improve the
(5) a statement of the person’s odds of receiving each prize identified in the notice;
(6) any requirement that the person pay the actual shipping or handling fees or any other charges to obtain or use a prize, including the nature and amount of the charges;
(7) if receipt of the prize is subject to a restriction, a description of the restriction;
(8) any limitations on eligibility; and
(9) if a sponsor represents that the person is a “finalist”, has been “specially selected”, is in “first place”, or is otherwise among a limited group of persons with an enhanced likelihood of receiving a prize, the written prize notice must contain a statement of the maximum number of persons in the group or purported group with this enhanced likelihood of receiving a prize.”)