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

Based on the documents provided, there are no specific regulations regarding contests that involve loyalty programs in Massachusetts. However, there are general requirements that apply to all DFS contests in the state.

Requirements for Fair and Truthful Advertising

DFS operators must comply with existing advertising regulations, including 940 CMR 3.00: General and 6.00: Retail Advertising. Any representation concerning winnings must be accurate, not misleading, and capable of substantiation at the time the representation is made. Under 940 CMR 34.00, a DFSO advertisement is misleading if it makes representations about average winnings without equally prominently representing the average net winnings of all players. [1.5]

Promotional Offers

DFS operators must fully and accurately disclose the material terms of all promotional offers at the time such offers are advertised and provide full disclosures of the terms of and limitations on the offer before the DFS Consumer provides anything of value in exchange for the offer. If the material terms of a promotional offer cannot be fully and accurately disclosed within the constraints of a particular advertising medium (e.g., on a billboard), the promotional offer may not be advertised in that medium. [1.4]

Prizes

DFS operators must comply with regulations regarding prizes, including clearly and conspicuously identifying the prize in the advertisement, disclosing the value of the prize, and disclosing material conditions or limitations imposed by the seller as a prerequisite to receipt of or on the use of the prize. All other material conditions or limitations must be clearly and conspicuously disclosed in the official rules to be made available to the prospective buyer at the time and place of entry or participation. [3.1]

Based on the above requirements, if a DFS operator offers contests that involve loyalty programs, they must ensure that their advertising and promotional offers are fair and truthful, and that the prizes and any associated conditions or limitations are clearly and conspicuously disclosed.

Source(s):
Jurisdiction

Massachusetts