Sec. 73.1216  Licensee-conducted contests.

    A licensee that broadcasts or advertises information about a contest 
it conducts shall fully and accurately disclose the material terms of 
the contest, and shall conduct the contest substantially as announced or 
advertised. No contest description shall be false, misleading or 
deceptive with respect to any material term.

    Note 1: For the purposes of this rule:
    (a) A contest is a scheme in which a prize is offered or awarded, 
based upon chance, diligence, knowledge or skill, to members of the 
public.
    (b) Material terms include those factors which define the operation 
of the contest and which affect participation therein. Although the 
material terms may vary widely depending upon the exact nature of the 
contest, they will generally include: how to enter or participate; 
eligibility restrictions; entry deadline dates; whether prizes can be 
won; when prizes can be won; the extent, nature and value of prizes; 
basis for valuation of prizes; time and means of selection of winners; 
and/or tie-breaking procedures.

    Note 2: In general, the time and manner of disclosure of the 
material terms of a contest are within the licensee's discretion. 
However, the obligation to disclose the material terms arises at the 
time the audience is first told how to enter or participate and 
continues thereafter. The material terms should be disclosed 
periodically by announcements broadcast on the station conducting the 
contest, but need not be enumerated each time an announcement promoting 
the contest is broadcast. Disclosure of material terms in a reasonable 
number of announcements is sufficient. In addition to the required 
broadcast announcements, disclosure of the material terms may be made in 
a non-broadcast manner.

    Note 3: This rule is not applicable to licensee-conducted contests 
not broadcast or advertised to the general public or to a substantial 
segment thereof, to contests in which the general public is not 
requested or permitted to participate, to the commercial advertisement 
of non-licensee-conducted contests, or to a contest conducted by a non-
broadcast division of the licensee or by a non-broadcast company related 
to the licensee.


[ 41 FR 43152 , Sept. 30, 1976]