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

Based on the context documents, it appears that offering contests that involve loyalty programs in South Carolina is allowed under certain conditions. The relevant law is found in SCCL 34-45-30, which authorizes financial institutions to conduct savings promotion contests to encourage depositors to maintain savings accounts and increase personal savings.

Requirements for Offering Savings Promotion Contests

To offer savings promotion contests in South Carolina, financial institutions must comply with the provisions of SCCL 34-45-30 and SCCL 34-45-20. According to SCCL 34-45-20, the following terms apply:

• “Depositor” means an individual member or customer of a financial institution who maintains a qualifying account at a financial institution participating in a savings promotion contest.
• “Qualifying account” means a savings account or other savings product or program offered by a participating financial institution into which deposits may be made by a depositor.
• “Savings promotion contest” means a contest or promotion sponsored by a financial institution or a group of financial institutions in which a chance of winning designated prizes is obtained by a depositor when the depositor deposits a specified amount of money or makes a specified number of deposits into the depositor’s qualifying account or participates in one or more savings products or programs.

Requirements for Compliance with Consolidated Procurement Code

If the contests involve procurement, the financial institution must comply with the South Carolina Consolidated Procurement Code, as stated in SCCL 59-150-290.

Other Relevant Laws

There are other laws in South Carolina that relate to contests and promotions, such as SCCL 46-19-220, which authorizes the Commissioner to prescribe standards for participation in a program, and SCCL 59-150-140, which requires lottery vendors to post a performance bond or letter of credit and be qualified to do business in the state. However, these laws do not specifically address contests that involve loyalty programs.

Conclusion

Based on the context documents, it appears that financial institutions can offer contests that involve loyalty programs in South Carolina as long as they comply with the requirements of SCCL 34-45-30 and SCCL 34-45-20. If the contests involve procurement, the financial institution must also comply with the South Carolina Consolidated Procurement Code.

Jurisdiction

South Carolina

• Gaming