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Can I offer contests that involve loyalty programs in California? What are the requirements?

Offering Contests and Sweepstakes in California

If you are planning to offer contests or sweepstakes in California, there are certain requirements you need to follow.

According to Business and Professions Code Sections 25600.1 and 25600.2, an authorized licensee may conduct consumer contests or sweepstakes, subject to the following conditions:

  • Entry or extra chances in a contest or sweepstakes shall not be made available via the purchase of an alcoholic beverage.
  • No entry fee may be charged to participate in a sweepstakes.
  • Entry into or participation in a contest or sweepstakes shall be limited to persons 21 years of age or older.
  • No contest or sweepstakes shall involve consumption of alcoholic beverages by a participant.
  • A contest or sweepstakes may not be conducted for the benefit of any permanent retail licensee.
  • Closures, caps, cap liners, corks, labels, cartons, cases, packaging, or other similar material shall not be used as an entry to a contest or sweepstakes [1].

Loyalty Programs and Contests

If you are planning to offer contests that involve loyalty programs in California, you need to ensure that you capture express opt-in consent and meaningfully provide consumers with the right to participate [2].

In summary, you can offer contests that involve loyalty programs in California, but you need to ensure that you follow the requirements mentioned above and capture express opt-in consent from consumers.

Source(s):
Jurisdiction

California