Can I offer contests that involve free entry in Louisiana? What are the requirements?

Yes, it is legal to offer contests that involve free entry in Louisiana as long as participants are not required to submit to a sales presentation or promotional program in order to claim the prize or gift. However, there are certain requirements that must be met in order to conduct a lawful promotion.

Requirements for Lawful Promotions in Louisiana

According to LARS § 51.1721, unless written or verbal disclosure is made, it is unlawful to offer a prize or gift to a consumer as part of any advertising or sales promotion plan if the consumer is required to submit to a sales presentation or promotional program in order to claim the prize or gift. The disclosure must contain a full description of the exact prize or gift, all terms and conditions attached to the prize or gift, a statement that the consumer is required 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.

Additionally, any prize, gift, or other item offered pursuant to a prize and gift promotional offer must be delivered to the prospective purchaser whether or not he or she purchases the product offered for sale. If the prize, gift, or other item is valued at two hundred dollars or less, or is a vacation certificate, it must be delivered on the day the recipient appears to claim it. If the prize, gift, or other item is valued in excess of two hundred dollars or if ordered supplies of the item have been exhausted, a gift voucher describing the item must be offered. Such vouchers shall state that the company giving the item will provide the described item within fourteen days following issuance of the voucher or will pay to the offeree the manufacturer’s suggested price or, if there is no such price, the verifiable retail value.

Mail Solicitations for Contest Participation

If you plan to solicit individuals by mail to participate in a contest, you must include a statement of the odds that a participant making a single entry in such contest has of winning each item offered as a gift, prize, or thing of value. Alternatively, you may include a statement that the odds depend upon the number of entries received. Such a statement must be clearly and conspicuously printed on the face of the solicitation in bold type of at least twelve points or shall be contained in a section with contest rules, according to LARS § 51.1725.

Sweepstakes promotions

Sweepstakes promotions are regulated by LARS § 51.1726. The winner of any sweepstakes promotion shall be revealed in only one of the following manners: (1) Through posting on a printed list. (2) Through the use of scratch-off tickets or cards. (3) Through the use of pull-tab tickets or cards. (4) By contacting the winner in writing or through telephone communication.

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 the following information: (1) Rules that govern the sweepstakes promotion. (2) Identity and contact information of the persons providing, conducting, and offering the sweepstakes promotion. (3) Any prize that may be won during the sweepstakes promotion and the monetary value of such prize. (4) Odds of winning a prize in the sweepstakes promotion. (5) Laws that govern the operation of sweepstakes promotions. (6) Any jurisdiction that does not allow the sweepstakes promotion. (7) The name or names of the sweepstakes promotion winner, after such winner has been revealed in accordance with the provisions of LARS § 51.1726. (8) The prize that was won by the winner and the monetary value of such prize, according to LARS § 51.1727.

Raffle Drawings

If you plan to conduct a raffle drawing, the prize which will be awarded by raffle drawing shall be owned by the applicant or permittee prior to the sale of any tickets or chances to win, according to 42 LAAC Part II Chapter 2 Section 204, §204. No raffle shall be conducted where the winner must be present at the drawing in order to win, unless clearly stated on the raffle ticket. Raffle tickets or chances to win shall be consecutively numbered and designed and constructed to allow the licensee to retain a consecutively numbered stub for each ticket sold and to provide the purchaser with a matching consecutively numbered ticket at the time of purchase. Permittees shall retain the following records and documentation for three years from the date of the raffle drawing: name, address, and Social Security number of the winner(s); amount received from the sale of all raffle tickets and expenses incurred; stubs of all tickets sold, winning tickets and the unsold tickets; and copies of all records and documentation submitted in conjunction with the raffle to any local, state or federal taxing authority. Permittees shall comply with all applicable local ordinances, and state and federal laws and regulations, including, but not limited to, income withholding and reporting requirements. Permittees shall take steps to insure that each ticket purchaser has an equal chance to win and that the prize winner is selected in an entirely random manner.

In summary, it is legal to offer contests that involve free entry in Louisiana as long as participants are not required to submit to a sales presentation or promotional program in order to claim the prize or gift. However, there are certain requirements that must be met in order to conduct a lawful promotion, including providing written or verbal disclosure and delivering the prize or gift to the recipient. If you plan to solicit individuals by mail to participate in a contest, you must include a statement of the odds or a statement that the odds depend upon the number of entries received. Sweepstakes promotions and raffle drawings are also regulated and have specific requirements that must be followed.

Jurisdiction

Louisiana

• Gaming