Suppose I sell a product online, except instead of charging $1, I charge $100 and then with 99% probability give the money back. Would this be legal or would it be considered an unlicensed lottery or something like that?
I'm interested in laws in the US and/or Canada.
From the description, it tends more towards the latter than the former due to the random nature of the “prize”. Whether a sweepstakes is illegal or not and what conditions make it one or the other depends on local law.
So you claim the value of an item is $1. Obviously I won’t hand over $100 for a $1 item, because I wouldn’t trust you enough. And even if a trusted you, I wouldn’t risk having to pay $100 for an item worth $1.
Now if I did this, you must be aware that in many countries I have the right to return the item for a full refund. So if I was the person chosen to pay $100, you won’t actually get any money because you have to refund me.
