At the start of a sales presentation that includes a prize drawing, which action is required?

• A. Clearly state that no obligation exists to enroll if a gift or prize is being offered.
• B. Offer enrollment immediately to all attendees.
• C. Explain all plan features in detail before any discussion.
• D. Collect participants' contact information for follow-up.

Answer: (A)

When you begin a sales presentation that includes a prize drawing, you must clearly state that there is no obligation to enroll in a plan to receive the gift. This disclosure prevents attendees from feeling coerced into enrollment just to obtain the prize and helps keep marketing practices fair and compliant with consumer protection guidelines. The other options don’t address this essential consumer-rights safeguard: offering enrollment immediately can pressure attendees, detailing plan features before establishing the gift context isn’t the required step, and collecting contact information for follow-up isn’t the mandated action tied to prize disclosures.