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Can I offer contests that involve cash prizes in Louisiana? What are the requirements?

Based on the context documents, Louisiana law allows for sweepstakes promotions with cash prizes, but there are specific regulations that must be followed.

Requirements for Offering Contests with Cash Prizes in Louisiana

  • Contests with cash prizes fall under the category of “sweepstakes promotions” as defined in LARS § 51.1726(E)(5).
  • Sweepstakes promotions must be regulated by the Department of Justice, office of attorney general, as provided for in LARS § 51.1726(C).
  • The winner of any sweepstakes promotion must be revealed through one of the following manners: (1) posting on a printed list, (2) scratch-off tickets or cards, (3) pull-tab tickets or cards, or (4) contacting the winner in writing or through telephone communication, as provided for in LARS § 51.1726(A).
  • The provisions of LARS § 51.1726 do not apply to entities holding sweepstakes or contests to which only the entities’ employees may enter, persons or entities licensed or permitted pursuant to the provisions of Titles 4 and 27 of the Louisiana Revised Statutes of 1950, or any sweepstake, contest, or similar activity authorized and regulated by Title 26 of the Louisiana Revised Statutes of 1950, as provided for in LARS § 51.1726(D)-(F).

Additionally, LARS § 51.1721 outlines prerequisites for lawful promotion of promotional contests. It is unlawful for any person, firm, or corporation to offer in writing a prize or gift to a consumer as part of any advertising or sales promotion plan, if, in order to claim the prize or gift, the consumer is given, invited, required, or requested to submit to a sales presentation or promotional program. Such disclosure must be provided to the consumer at the time he is notified of the prize or gift. The disclosure must contain a full description of the exact prize or gift tendered to the consumer, including its cash value, all terms and conditions attached to the prize or gift, a statement that the consumer is given, invited, required, or requested to submit to a sales presentation or promotional program, and a full description of the product, real estate, investment, services, membership, or any other item to be offered for sale, including the price of the least expensive and the most expensive item or parcel.

Furthermore, LARS § 51.1727 outlines regulations for electronic display of sweepstakes winners. A computer or computer system that is used as part of a sweepstakes promotion shall be used only to allow a person to enter their name and contact information for the purpose of entering into the sweepstakes promotion and to display certain information, including the rules that govern the sweepstakes promotion, identity and contact information of the persons providing, conducting, and offering the sweepstakes promotion, any prize that may be won during the sweepstakes promotion and the monetary value of such prize, odds of winning a prize in the sweepstakes promotion, laws that govern the operation of sweepstakes promotions, any jurisdiction that does not allow the sweepstakes promotion, and the name or names of the sweepstakes promotion winner, after such winner has been revealed in accordance with the provisions of LARS § 51.1726.

Therefore, if you plan to offer contests with cash prizes in Louisiana, you must ensure that your sweepstakes promotion follows the regulations set forth in LARS § 51.1726, LARS § 51.1721, and LARS § 51.1727, and is regulated by the Department of Justice, office of attorney general.

Note that there may be additional requirements or regulations that apply to your specific type of contest or industry. It is recommended that you consult with a legal professional to ensure compliance with all applicable laws and regulations.

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Source(s):
Jurisdiction

Louisiana