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Can I offer contests that involve free entry in Texas? What are the requirements?
To offer contests that involve free entry in Texas, you must comply with the requirements set forth in the Texas Business and Commerce Code. Specifically, contests other than drawings must maintain records of the identity and address of each person responsible for developing, creating, sponsoring, or implementing any part of the advertising plan or program, records that show that the winning numbers have been deposited in the mail or otherwise made available to recipients in accordance with the odds statement provided under Section 621.104(a), a copy of each contest solicitation, and records adequate to determine the name and address of each contestant, the approximate date each contestant was sent the solicitation used in the contest, the number of major prizes awarded, the date each major prize was awarded, the name, brand, type, model number, and manufacturer of each prize offered, the method of computing the retail value of each prize, the method of selecting major prize winners, the name and address of each major prize winner, and the facts on which each representation or disclosure made in connection with the contest was based and from which the validity of the representation or disclosure can be determined [1.1].
Requirements for contests other than drawings
- Maintain records of the identity and address of each person responsible for developing, creating, sponsoring, or implementing any part of the advertising plan or program
- Maintain records that show that the winning numbers have been deposited in the mail or otherwise made available to recipients in accordance with the odds statement provided under Section 621.104(a)
- Maintain a copy of each contest solicitation
- Maintain records adequate to determine:
- The name and address of each contestant
- The approximate date each contestant was sent the solicitation used in the contest
- The number of major prizes awarded
- The date each major prize was awarded
- The name, brand, type, model number, and manufacturer of each prize offered
- The method of computing the retail value of each prize
- The method of selecting major prize winners
- The name and address of each major prize winner
- The facts on which each representation or disclosure made in connection with the contest was based and from which the validity of the representation or disclosure can be determined [1.1]
Conclusion
You can offer contests that involve free entry in Texas, but you must comply with the requirements set forth in the Texas Business and Commerce Code. Specifically, you must maintain records of the identity and address of each person responsible for developing, creating, sponsoring, or implementing any part of the advertising plan or program, records that show that the winning numbers have been deposited in the mail or otherwise made available to recipients in accordance with the odds statement provided under Section 621.104(a), a copy of each contest solicitation, and records adequate to determine the name and address of each contestant, the approximate date each contestant was sent the solicitation used in the contest, the number of major prizes awarded, the date each major prize was awarded, the name, brand, type, model number, and manufacturer of each prize offered, the method of computing the retail value of each prize, the method of selecting major prize winners, the name and address of each major prize winner, and the facts on which each representation or disclosure made in connection with the contest was based and from which the validity of the representation or disclosure can be determined [1.1].
Source(s):
Jurisdiction
Texas