Ive heard that certain promotions need to be bonded. Whats that all about?
Certain states (Florida and New York) require the posting by the promotion’s sponsor of either a surety bond or the establishing of an escrow account if the promotion requires registration (consumer promotions offering prizes with a total value in excess of $5,000, to residents of their states, among other requirements). This is also true of promotions run in the province of Quebec in Canada. In the event the sponsor defaults, the funds are payable to the state, in order to award the prizes. The key idea here is consumer protection. Media Direct USA advises its customers on registration requirements, and assists in the process of registering promotions, as well as in filing for the release of the promotion once all winners have been determined and prizes awarded. Sponsors who run promotions in violation of these state and provincial laws are subject to fines and penalties.
Related Questions
- I’ve heard that there are stricter criteria for certain kinds of bankruptcy filings. What are some of the key changes under the new bankruptcy law?
- Ive heard lots of warnings about drug interactions with certain depression medicines. What are they?
- Does MMS damage certain body tissues, as I have heard that its a strong oxidising agent?
