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HOUSE BILL 2530 |
HOUSE AUTHOR: Junell et al. |
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EFFECTIVE: 11-1-01 |
SENATE SPONSOR: R. Ellis |
House Bill 2530 amends the Business & Commerce Code to prohibit a person who conducts a sweepstakes through the mail from (1) engaging in certain activities, including requiring an individual to order or purchase a good or service in order to enter the sweepstakes or conditioning a person's chances of winning on an order or purchase; (2) providing certain misleading information relating to an individual's chance of winning the sweepstakes, including stating or implying that those chances are raised, lowered, or different because of a factor not related to the manner of selecting a winner; (3) conducting another game or sweepstakes within 30 days of concluding a sweepstakes; (4) publishing incomplete or inconsistent descriptions of sweepstakes prizes; or (5) stating that the recipient of a mailing is a winner if the recipient is not, or that the recipient may be or will be a winner or may be or will be among the group from which a winner will be chosen.
The bill exempts certain organizations that conduct sweepstakes from regulation under these provisions, allows the attorney general to file suit for a violation of these provisions, requires a district court to award the attorney general a civil penalty of not less than $5,000 or more than $50,000 or each violation, and authorizes the court to award injunctive or other equitable or ancillary relief to prevent future violations.