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

Loyalty Programs and Contests in Colorado

Yes, it is possible to offer contests that involve loyalty programs in Colorado. However, there are certain requirements that must be met in order to comply with Colorado law.

According to CORS 6-1-801, it is the intent of the general assembly to require that Colorado consumers be provided with all relevant information necessary to make an informed decision concerning sweepstakes and contests. It is also the intent of the general assembly to prohibit misleading and deceptive prize promotions. The terms of this part 8 shall be construed liberally in order to achieve this purpose.

Additionally, CORS 6-1-802 provides definitions for terms used in part 8, including “contest” and “prize.”

Loyalty programs that involve contests or sweepstakes must comply with the requirements outlined in part 8 of the Colorado Revised Statutes. This includes providing consumers with all relevant information necessary to make an informed decision concerning the contest or sweepstakes, as well as prohibiting misleading and deceptive prize promotions.

Furthermore, CORS 6-1-803 outlines prohibited practices and required disclosures for sweepstakes and contests in Colorado. For example, no sponsor shall require a person to pay the sponsor money or any other consideration as a condition of awarding the person a prize, or as a condition of allowing the person to receive, use, compete for, or obtain a prize or information about a prize. Additionally, no sponsor shall represent that a person has won or unconditionally will be the winner of a prize or use language that may lead a person to believe he or she has won a prize, unless certain conditions are met.

It is important to note that the requirements for contests and sweepstakes may vary depending on the specific details of the loyalty program. Therefore, it is recommended that you consult with a legal professional to ensure compliance with Colorado law.

Conclusion

In summary, it is possible to offer contests that involve loyalty programs in Colorado, but it is important to comply with the requirements outlined in part 8 of the Colorado Revised Statutes and CORS 6-1-803. This includes providing consumers with all relevant information necessary to make an informed decision concerning the contest or sweepstakes, as well as prohibiting misleading and deceptive prize promotions. If you have any questions or concerns, it is recommended that you consult with a legal professional.

Jurisdiction

Colorado

• Gaming