JLester
Administrator
Posts: 1947
From: Abingdon, VA
Registered: Mar 99
posted 12-30-2000 05:37 PM
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We'll do the drawing on 1/31/01.
Jason
Am I the only who's noticed that this donation contest is illegal?
You can accept donations and give away prizes, BUT you cannot require a donation, purchase, etc. in order to be eligible to win. If you do that, you are engaged in an illegal lottery. All fifty states have statutes that prohibit illegal lotteries. Additionally, this is in violation of Federal Lottery laws.
In Virginia, where ford-diesel.com is based,
a "lottery" is a generic term embracing "all schemes for distribution of prizes by chance for consideration." Consideration is money, services, etc. This is clearly present in the ford-diesel contest.
The Virginia Attorney General consistently concludes that the element of consideration is missing when no purchase is required to enter into a drawing or other game of chance.
Federal law prohibits broadcasters from advertising or sponsoring a lottery -- and a violation of this can be punished by a fine and up to a year's imprisonment. 18 U.S.C. Section 1304. By statute and regulation, a "lottery" is a contest in which the participant must pay money or something else of value in order to have chance to win a prize which is awarded at least in part by luck.
The administrator stated:
<BLOCKQUOTE><font size="1" face="Verdana, Arial">quote:</font><HR>This year we have $750, $500, and $250 cash prizes courtesy of Hypertech, ISSPro, and Diesel Injection Service. We will also give away several Ford-Diesel.Com hats and other assorted items. Everyone who helps out is eligible for the contest. For every
$20, you will be entered once in the contest. Send $40 and you are entered twice for example. <HR></BLOCKQUOTE>
The requirement for money meets the criteria for "consideration" and the prize give away meets the "chance" criteria.
I look at it this way.... I made my donation to help out Jason with keeping a GREAT website going strong! If it got me entered into the contest, that's a bonus! I guess what I'm trying to say is I made my donation to help give back to a website that has helped me immensely over the last couple years and if it wasn't for the help I've recieved here, I'd probably be driving a YUGO. Thanks Jason for having a GREAT SITE! Tim
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Y2K-F250XLT-CC-4X4-Shortbed-6 speed-3.73 limited slip-dark torreador red-medium graphite interior with captain's chairs-power everything...dang I love this truck!!!
What would you propose we do to make it legal and still be able to fund the site? If we do something like the other contests I see "For free entry, send a self-addressed and stamped envelope to:", does that fix the illegal problem?
It seems odd that if we only accept donations that we would be legal but that the offering of prizes makes it illegal.
First, let me state that my posting was not meant to stir up trouble. It was meant to keep you out of trouble.
I am not a lawyer, therefore I can't give legal advice. However, I have experience in the lottery field. If you have concerns, ask a lawyer. What follows is just my opinion:
In order to not qualify as a lottery, one of the three conditions must be removed:
If you allow anyone to enter, that removes consideration --- but it removes incentive to donate. If you remove the element of chance, that solves it but then you have the problem of how to give away the prizes. You obviously can't eliminate the prizes. I think the users ought to brainstorm ideas for a solution. The laws can be weird, but they're meant to eliminate illegal gambling, and prevent companies like Publisher's Clearing House from requiring you buy magazines in order to win. Unfortunately, the law doesn't care about the circumstance, only the application and rules of the contest. It hurts efforts like yours.
Isn't it GRAND?? Have a guy like Jason provide a great service for the PS community just to have some legal eagle descend upon him! How about making this a private forum or site? Shouldn't be too difficult. Call it the Brotherhood of the mighty Power Stroke and sell raffle tickets to members.
This reminds me of the early eighties when I was stationed in Wichita Falls. Had to fill out a membership card at Red Lobster just to get a beer with my meal!! I hope common sense will prevail.
DUH!
Ernest
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99 SC XLT 3.73 LS Auto Shorty, WD chip, triple A-pillar gauges
Even if it is determined to be illegal why was the donation by credit card option taken out of the store. When I went to donate, without regard to the contest, it was gone. I would rather donate this way if possible.
-Greg-
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Greg
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96 F250XLT,SC, PSD Hooked to a BTS Tranny, LWB 4x4 (4.10s), D60 Straight axle conversion, Isspro Triple A-pillar Guage Pack, Mag-HyTec Axle Cover and a few others. My Truck Pics Of Truck Stuff
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