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

Contests of Skill in New Jersey

In New Jersey, participation in contests of skill in which a participant pays an entry fee for the opportunity to win a monetary prize or something else of value shall not be considered a game of chance, shall not constitute unlawful gambling under the laws of this State, and shall not subject the participant or the sponsor of the contest of skill, or any officer, employee, or agent of the sponsor, to any civil or criminal liability under the laws of this State that prohibit gambling [1.1].

For the purposes of this section, “contest of skill” means any baking or photography contest, and any similar contest that is approved as a “contest of skill” by the Attorney General, provided that the winner or winners are selected solely on the quality of an entry in the contest as determined by a panel of judges using uniform criteria to assess the quality of entries. A “contest of skill” shall not include any contest, game, pool, gaming scheme or gaming device in which the outcome depends in a material degree upon an element of chance. A “contest of skill” shall also not include any casino game, any sports wager or sports wagering scheme, or any Internet gaming of any kind [1.1].

Loyalty Programs

There is no specific law or regulation in New Jersey that governs contests involving loyalty programs. However, it is important to note that any contest or promotion must comply with the general laws and regulations governing advertising and marketing in the state.

For example, the New Jersey Consumer Fraud Act prohibits any unconscionable commercial practice, deception, fraud, false pretense, false promise, or misrepresentation in connection with the sale or advertisement of any merchandise or real estate [2.1].

Additionally, the New Jersey Division of Consumer Affairs has issued guidelines for sweepstakes and other promotional contests, which require that the rules of the contest be clearly disclosed and that the contest be conducted fairly and impartially [2.2].

Therefore, if you plan to offer a contest involving a loyalty program in New Jersey, it is recommended that you consult with an attorney to ensure that your contest complies with all applicable laws and regulations.

Conclusion

In summary, New Jersey law allows for contests of skill, but there are no specific laws or regulations governing contests involving loyalty programs. Any such contest must comply with general laws and regulations governing advertising and marketing in the state, including the New Jersey Consumer Fraud Act and guidelines issued by the New Jersey Division of Consumer Affairs. It is recommended that you consult with an attorney to ensure that your contest complies with all applicable laws and regulations.

Source(s):
Jurisdiction

New Jersey