KRS 367.46981: Bond required for telemarketing companies -- Notification to Attorney

General of promotion offering premium.

(1) Every telemarketing company shall maintain a bond issued by a surety company

admitted to do business in this state. The bond shall be in the amount of fifty

thousand dollars ($50,000) in favor of the Attorney General for the benefit of any

person suffering injury or loss by reason of any violation of KRS 367.46951 to

367.46999 to be paid under the terms of any order of a court of comp etent

jurisdiction obtained by the Attorney General, as a result of any violation of KRS

367.46951 to 367.46999. A copy of the bond shall be filed with the office.

(2) 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 telemarketing company shall notify the Attorney General in writing of the

details of the promotion, describing the premium and its current market value, the

value at whic h it is advertised or held out to the customer, the date the premium

shall be awarded, and the conditions under which the award shall be made. The

telemarketing company shall maintain an additional bond for the greater of the

current total market value or the advertised value 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 office. The bond, or a portion of it necessary to cover the cost of the

award, shall be forfeited if the pre mium is not awarded to a bona fide customer

within thirty (30) days of the date disclosed as the time of award or the time

otherwise required by law. The proceeds of the bond shall be paid to any person

suffering injury or loss by reason of any violation o f KRS 367.46951 to 367.46999

or shall be paid pursuant to the terms of any order of a court of competent

jurisdiction obtained by the Attorney General, Commonwealth's attorney, or county

attorney as a result of any violation of KRS 367.46951 to 367.46999. The bond

shall be maintained until the telemarketing company files with the Attorney General

proof that the premium was awarded.