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Can I offer contests that involve in-game promotions in New Mexico? What are the requirements?
To offer contests that involve in-game promotions in New Mexico, you must comply with the regulations set forth by the New Mexico Attorney General’s Consumer Protection Division.
Requirements for Game Promotions in New Mexico
According to [1.1], game promotions that require consideration in order to participate must make the following disclosures in each and every representation made in connection with the game promotion, including all advertising and promotional literature:
A. The number of prizes to be awarded in each category or denomination, and a complete description of all prizes, including the exact monetary amount of cash prizes. If a prize is to be shared in the event of multiple winners, that fact should be disclosed, as well as the method by which the allocation will be made, and the approximate amount of the reduced share.
B. The odds of winning each stated prize. This information should be based on statistics on actual numbers of participants in prior similar game promotions, if available; or upon a reasonable estimate of anticipated participation in the promotion. If the promotion has multiple stages, the odds of reaching each stage should be disclosed.
C. The total amount of consideration necessary in order to be eligible for the first prize in each category or denomination. If the promotion has multiple stages, each involving separate consideration, the amounts involved should be totaled to reflect the full consideration which would be required by a participant were he successful at each stage.
D. The manner in which winners in each category or denomination shall be selected.
E. The complete name and address of the sponsor, user or promoter.
F. The geographic area covered.
G. The opening date and scheduled termination date.
H. The scheduled announcement date of the winners and the date and manner of award of prizes.
I. For purposes of Paragraph ten [now 12.2.2.10 NMAC] only, game promotions shall not include athletic competition or other sports events, pari-mutuel betting, booths at fairs or competition whose entrants are judged on the results of their skilled efforts at raising animals, training dogs, growing flowers, baking cakes, creating arts and crafts or other endeavors.
Additionally, [1.1] states that game promotions designed solely to sell a product or service at a discount are considered an unfair and deceptive trade practice.
Exemptions
According to [1.4], persons may receive an exemption from some or all of the requirements of Paragraph ten [now 12.2.2.10 NMAC] through application to the office of the attorney general. Exemptions will be granted only in limited cases, and only if the lack of specific disclosures will not result in a false, misleading or deceptive game promotion.
Conclusion
To offer contests that involve in-game promotions in New Mexico, you must comply with the regulations set forth by the New Mexico Attorney General’s Consumer Protection Division. These regulations require specific disclosures to be made in each and every representation made in connection with the game promotion, including all advertising and promotional literature. Exemptions may be granted in limited cases through application to the office of the attorney general.
Source(s):
- [1.1] PROMOTIONS
- [1.4] EXEMPTIONS
Jurisdiction
New Mexico