A. It shall be an unfair business practice for a for-profit entity or natural person to collect donations of unwanted clothing and household items via a public receptacle and resell the donated items for profit unless the donation receptacle prominently displays a disclosure label printed in bold letters at least one (1) inch high and one (1) inch wide stating: “DONATIONS ARE NOT FOR CHARITABLE ORGANIZATIONS AND WILL BE RESOLD FOR PROFIT”.

B. It shall be an unfair business practice for a for-profit entity or natural person to collect donations of unwanted clothing and household items via a public receptacle and resell the donated items if some or all of the proceeds from the sale are directly given to a not-for-profit entity unless the donation receptacle prominently displays a disclosure label printed in bold letters at least one (1) inch high and one (1) inch wide stating: “DONATIONS TO THE FOR-PROFIT ENTITY: (name of the for-profit entity or individual) ARE SOLD FOR PROFIT AND (percentage of proceeds donated to the not-for-profit entity) OF ALL PROCEEDS IS DONATED TO (name of the nonprofit beneficiary organization)”.

C. It shall be an unfair business practice for a for-profit entity or natural person to collect donations of unwanted clothing and household items via a public receptacle and resell the donated items, if the not-for-profit entity is paid a flat fee, not contingent upon the proceeds generated by the sale of the collected goods, and one hundred percent (100%) of the proceeds from the sale of the items is retained by the for-profit entity, unless the donation receptacle prominently displays a disclosure label printed in bold letters at least one (1) inch high and one (1) inch wide stating: “THIS DONATION RECEPTACLE IS OPERATED BY THE FOR-PROFIT ENTITY: (name of the for-profit entity or individual) ON BEHALF OF (name of the nonprofit beneficiary organization)”. Donations are sold for-profit by (name of the for-profit entity or individual) and a flat fee (insert fee arrangement) is paid to (name of the not-for-profit beneficiary or organization).

D. As used in this section:

1. “Public receptacle” means a large container, or donation bin, commonly placed in a parking lot for the purpose of encouraging individuals to donate clothing or other items;

2. “Disclosure label” means a printed or typed notice permanently affixed to a public receptacle on the side and front which is easily readable and legible.

E. 1. In addition to the requirements provided for in this section, every disclosure label shall include an address and telephone number of the entity benefiting from the donation;

2. For purposes of this subsection, a post office box shall not be considered sufficient for the address on the disclosure label.

F. Nothing in this section shall apply to paper, glass, plastic, or aluminum products that are donated for the purpose of being recycled in the manufacture of other products.

Added by Laws 2008, c. 361, § 1, eff. Nov. 1, 2008.