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Can I offer contests that involve loyalty programs in Louisiana? What are the requirements?
Based on the provided legal documents, it is lawful to offer contests that involve loyalty programs in Louisiana as long as certain requirements are met.
Requirements for lawful promotion
According to LARS § 51.1721, it is unlawful to offer a prize or gift to a consumer as part of any advertising or sales promotion plan if, in order to claim the prize or gift, the consumer is given, invited, required, or requested to submit to a sales presentation or promotional program, unless written or verbal disclosure is made at the time of notification of the prize or gift. The disclosure must contain a full description of the exact prize or gift, all terms and conditions attached to the prize or gift, a statement that the consumer is given, invited, required, or requested to submit to a sales presentation or promotional program, and a full description of the product, real estate, investment, services, membership, or any other item to be offered for sale, including the price of the least expensive and the most expensive item or parcel.
Additionally, any prize, gift, or other item offered pursuant to a prize and gift promotional offer must be delivered to the prospective purchaser whether or not he or she purchases the product offered for sale. If the prize, gift, or other item is valued at two hundred dollars or less, or is a vacation certificate, it must be delivered on the day the recipient appears to claim it. If the prize, gift, or other item is valued in excess of two hundred dollars or if ordered supplies of the item have been exhausted, a gift voucher describing the item must be offered. Such vouchers shall state that the company giving the item will provide the described item within fourteen days following issuance of the voucher or will pay to the offeree the manufacturer’s suggested price or, if there is no such price, the verifiable retail value.
Sweepstakes promotions
According to LARS § 51.1726, the winner of any sweepstakes promotion shall be revealed in only one of the following manners: (1) Through posting on a printed list. (2) Through the use of scratch-off tickets or cards. (3) Through the use of pull-tab tickets or cards. (4) By contacting the winner in writing or through telephone communication.
Electronic display of sweepstakes winners
A computer or computer system that is used as part of a sweepstakes promotion shall be used only to allow a person to enter their name and contact information for the purpose of entering into the sweepstakes promotion and to display the following information: (1) Rules that govern the sweepstakes promotion. (2) Identity and contact information of the persons providing, conducting, and offering the sweepstakes promotion. (3) Any prize that may be won during the sweepstakes promotion and the monetary value of such prize. (4) Odds of winning a prize in the sweepstakes promotion. (5) Laws that govern the operation of sweepstakes promotions. (6) Any jurisdiction that does not allow the sweepstakes promotion. (7) The name or names of the sweepstakes promotion winner, after such winner has been revealed in accordance with the provisions of R.S. 51:1726. (8) The prize that was won by the winner and the monetary value of such prize. [1.3]
Eligibility Requirements
Applicants must meet all of the following eligibility requirements: 1. businesses resident of and domiciled in the state of Louisiana; 2. a small business as defined in Section 3 of the Small Business Act; 3. at least 51 percent owned and controlled by one or more socially or economically disadvantaged minority individuals as defined in these rules; 4. capable of, and intends to perform a commercially useful function, as defined in these rules; 5. an independent, operational and functional business, as defined in these rules; 6. a business with adequate resources with which to perform the work of a contract. [2.1]
Conclusion
As long as the requirements for lawful promotion are met, it is possible to offer contests that involve loyalty programs in Louisiana. Additionally, sweepstakes promotions must follow specific guidelines for revealing the winner and displaying information. Eligibility requirements must also be met for applicants.
Source(s):
Jurisdiction
Louisiana