Void Where Prohibited: Where Did the Statement Come From

When you see an ad for a contest in a newspaper or in a magazine, you generally end up reading a rather lengthy description about the rules, restrictions, regulations, plus a description of the prize, all of which are in rather fine print. In addition, if you hear about a contest on the radio, you will also hear the announcer talking really fast at the end of the commercial about all the rules and requirements to become eligible. And for some contests ads, the final words may be something like, void where prohibited by law.

When companies start a contest that is open to the public, they have to think of all the legal repercussions. In other words, they make known to the public their responsibility in the contest so they can avoid any lawsuits from upset contest losers and unhappy prizewinners. In addition to making their responsibilities known to the public, companies also have to follow the laws in the areas that are covered by the contest.

Each state in the United States has their own set of rules established for contests. Most of the contest rules are basically the same, thereby allowing residents of the states to participate in national contests. However, in the state of Rhode Island, the laws are different. A company is required to file a legal statement to the secretary of state in Rhode Island before it can run a contest.

The statute regarding these contest reads as follows: "Any person, firm or corporation proposing to engage in any game, contest, or other promotion or advertising scheme or plan in which a retail establishment offers the opportunity to receive gifts, prizes, or gratitude's, as determined by chance, in order to promote its retail business, where the total announced value of the prizes offered to the general public is in excess of five hundred dollars ($500), must file a statement with the secretary of state."

The statute goes on further to explain in detail all the information that is required when filing. Furthermore, the company is also required to pay a $150 filing fee. Moreover, if a company does run a contest in Rhode Island and fails to file its statement correctly, the company is guilty of committing a criminal misdemeanor.

Because these rules, most companies do not even bother to run a national contest in Rhode Island. The research is too much of a hassle to make sure a statement is filed correctly with the secretary of state.

The other forty-nine states do not require a filing fee, but still do have certain rules to determine which contests are legal. Therefore, the statement, "void where prohibited" gives the company a blanket of safety against running an illegal contest in other states without having to do any research regarding the laws in each state.

So now you know the rest of the story of void where prohibited.