A.C.A. § 4-99-107
§ 4-99-107. Bond requirement -- Promotions -- Notice prior to inception
(a)
(1)
Every telephonic seller shall maintain a bond issued by a surety company authorized to do business
in this state. The bond shall be in the amount of fifty thousand dollars ($ 50,000) in favor of the State of
Arkansas for the benefit of any person suffering injury or loss by reason of any violation of this chapter, to
be paid under the terms of any order of a court of competent jurisdiction obtained by the Attorney General or
prosecuting attorney as a result of any violation of this chapter.
(2)
A copy of the bond shall be filed with the Consumer Protection Division of the Office of the Attorney
General.
(b)
(1)
At least ten (10) days prior to the inception of any promotion offering a premium with an actual
market value or advertised value of five hundred dollars ($ 500) or more, the telephonic seller shall notify
the Attorney General in writing of the details of the promotion, describing the premium, its current market
value, the value at which it is advertised or held out to the consumer, the date the premium shall be awarded,
and the conditions under which the award shall be made.
(2)
(A)
The telephonic seller shall maintain an additional bond for the total current market value or
advertised value, whichever is greater, of the premiums held out or advertised to be available to a purchaser
or recipient. A copy of the bond shall be filed with the division.
(B)
The bond or portion thereof necessary to cover the cost of the award shall be forfeited if the
premium is not awarded to a bona fide customer within thirty (30) days of the date disclosed as the time of
award or other time required by law.
(C)
The proceeds of the bond shall be paid to any person suffering injury or loss by reason of any
violation of this chapter, or shall be paid pursuant to the terms of any order of a court of competent
jurisdiction obtained by the Attorney General or prosecuting attorney as a result of any violation of this
chapter.
(D)
The bond shall be maintained until the seller files with the Attorney General proof that the premium
was awarded.
