Oklahoma § 21-996.3 - Violations - Unlawful practices

§ 21-996.3. Violations - Unlawful practices

A. It is unlawful for any person to use the term "prize" or

"gift" or other similar term in any manner that would be untrue or

misleading.

B. It is unlawful to notify any person by any means, as a part

of an advertising plan or program, that the person has won a prize

and that as a condition of receiving such prize the person must pay

any money or rent any goods or services.

C. It is unlawful to notify any person by any means that the

person will receive a gift and that as a condition of receiving the

gift the person must pay any money, or purchase, lease or rent any

goods or services, if any one or more of the following exists:

1. The shipping charge, depending on the method of shipping

used, exceeds:

a.

the average cost of postage or the average charge of a

delivery service in the business of delivering goods

of like size, weight, and kind for shippers other than

the offeror of the gift for the geographic area in

which the gift is being distributed, or

b.

the exact amount for shipping paid to an independent

supplier, who is in the business of shipping goods for

shippers other than the offeror of the gift.

2. The handling charge:

a.

is not reasonable, or

b.

exceeds the actual cost of handling, or

c.

exceeds the greater of Three Dollars ($3.00) in any

transaction or eighty percent (80%) of the actual cost

of the gift item to the offeror or its agent, or

Oklahoma Statutes - Title 21. Crimes and Punishments

d.

in the case of a merchandise retailer, exceeds the

actual amount for handling paid to an independent

supplier, who is in the business of handling goods for

businesses other than the offeror of the gift.

3. Any goods or services which must be purchased or leased by

the offeree of the gift in order to obtain the gift could have been

purchased through the same marketing channel in which the gift was

offered for a lower price without the gift items at or proximate to

the time the gift was offered.

4. The majority of the gift offeror's sales or leases within

the preceding year, through the marketing channel in which the gift

is offered or through in-person sales at retail outlets, of the type

of goods or services which must be purchased or leased in order to

obtain the gift item was made in conjunction with the offer of a

gift. This paragraph does not apply to a gift offer made by a

retail merchant in conjunction with the sale or lease through mail

order of goods or services if:

a.

the goods or services are of a type unlike any other

type of goods or services sold or leased by the retail

merchant at any time during the period beginning six

(6) months before and continuing six (6) months after

the gift offer,

b.

the gift offer does not extend for a period more than

two (2) months, and

c.

the gift offer is not untrue or misleading in any

manner.

5. The gift offeror represents that the offeree has been

specially selected in any manner unless the representation is true.

D. The provisions of subsection C of this section shall not

apply to the sale or purchase, or solicitation or representation in

connection therewith, of goods from a catalog or of books,

recordings, videocassettes, periodicals and similar goods through a

membership group or club which is regulated by the Federal Trade

Commission trade regulation rule concerning use of negative option

plans by sellers in commerce or through a contractual plan or

arrangement such as a continuity plan, subscription arrangement, or

a single sale or purchase series arrangement under which the seller

ships goods to a consumer who has consented in advance to receive

such goods and the recipient of such goods is given the opportunity,

after examination of the goods, to receive a full refund of charges

for the goods, or unused portion thereof, upon return of the goods,

or unused portion thereof, undamaged.

E. Each violation of the provisions of this section shall be an

unlawful practice pursuant to the provisions of the Oklahoma

Consumer Protection Act, Section 751 et seq. of Title 15 of the

Oklahoma Statutes.

Oklahoma Statutes - Title 21. Crimes and Punishments

F. Any person who violates the provisions of this section

shall, upon conviction, be guilty of a Class C2 felony offense and

shall be punished by imprisonment as provided for in subsections B

through F of Section 20M of this title.

Added by Laws 1991, c. 242, § 3, eff. Sept. 1, 1991. Amended by

Laws 2025, c. 486, § 231, eff. Jan. 1, 2026.