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

Based on the documents provided, it appears that offering contests that involve loyalty programs in Illinois is not explicitly regulated. However, there are certain requirements that must be met in order to conduct a lawful contest in Illinois.

Requirements for Lawful Contests in Illinois

According to [2.2]" >815 ILCS 525/25, a written promotional prize offer must contain the following in a clear and conspicuous statement at the onset of the offer:

  1. The true name or names of the sponsor and the address of the sponsor’s actual principal place of business;
  2. The retail value of each prize the person receiving the notice has been selected to receive or may be eligible to receive;
  3. A disclosure that no purchase is necessary to enter such written promotional offer;
  4. A disclosure that a purchase will not improve the person’s chances of winning with an entry;
  5. A statement of the person’s odds of receiving each prize identified in the notice;
  6. Any requirement that the person pay the actual shipping or handling fees or any other charges to obtain or use a prize, including the nature and amount of the charges;
  7. If receipt of the prize is subject to a restriction, a description of the restriction;
  8. Any limitations on eligibility; and
  9. If a sponsor represents that the person is a “finalist”, has been “specially selected”, is in “first place”, or is otherwise among a limited group of persons with an enhanced likelihood of receiving a prize, the written prize notice must contain a statement of the maximum number of persons in the group or purported group with this enhanced likelihood of receiving a prize.

Additionally, [2.1]" >815 ILCS 525/35 exempts certain types of solicitations or representations from the Illinois Prizes and Gifts Act, including sales by a catalog seller and the sale or purchase of time-shares created and regulated under the Illinois Real Estate Time-Share Act.

Conclusion

While there are no specific regulations regarding contests that involve loyalty programs in Illinois, it is important to ensure that any contest conducted complies with the requirements outlined in [2.2]" >815 ILCS 525/25 and any other applicable laws.

Source(s):
Jurisdiction

Illinois