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]