Arizona § 44-6561 - Unlawful acts or practices; violation; classification; civil penalty

§ 44-6561. Unlawful acts or practices; violation; classification; civil penalty

A. The following acts and practices are unlawful as applied to the planning, conduct or execution of a solicitation and constitute unlawful practices under section 44-1522 that the attorney general may investigate and for which the attorney general may take appropriate action as prescribed by chapter 10, article 7 of this title:

1. Knowingly using an emblem, device or printed matter belonging to or associated with a charitable organization without first being authorized in writing to do so by the charitable organization.

2. Knowingly using a name, symbol or statement so closely related or similar to that used by another charitable organization for the purpose of misleading a solicited person.

3. Knowingly making a misrepresentation to a person that the person on whose behalf a solicitation is being conducted is a charitable organization.

4. Knowingly making a representation to a person that another person sponsors, endorses or approves the solicitation if the other person has not given consent in writing to the use of that person's name for these purposes.

5. Knowingly failing to post in a clear and conspicuous manner at a location in which a charitable organization or other business entity receives donated items for the purpose of reselling the items to financially benefit a charitable organization one of the following statements:

(a) This collection site is owned by [name of charity], a charitable organization. Donated items received at this location will support the charitable mission of [name of charity].

(b) This collection site is owned by [name of company], a for-profit company.  Donated items received at this location will be sold by [name of company] with a portion of the proceeds benefiting [name of charity].

6. Knowingly making a misrepresentation to a person that a donation is any of the following:

(a) Tax deductible.

(b) Going to a nonprofit corporation.

(c) Enabling the person to receive a tax credit.

B. A contracted fund raiser who knowingly conducts any act or practice proscribed in subsection A of this section is guilty of a class 6 felony.

C. An independent solicitor who knowingly conducts any act or practice proscribed in subsection A of this section is guilty of a class 1 misdemeanor.

D. In addition to the criminal offenses provided in subsections B and C of this section, if a person conducts an act or practice proscribed in subsection A of this section, the attorney general may recover from the person on behalf of the state a civil penalty of not more than one thousand dollars per violation. The civil penalty prescribed by this subsection is in lieu of the penalty prescribed by section 44-1531.

E. For the purposes of subsection A, paragraph 5 of this section, an entity owns a collection site if the entity receives at least fifty-one percent of the proceeds generated by the retail sale of the donated items received at the collection site.