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

To offer contests that involve loyalty programs in Tennessee, you must comply with the Tennessee Coupon Sales Promotion Act ^[3.1]. The act requires promoters to have a written contract with the sponsor that sets forth all terms and conditions under which coupons obligating the sponsor may be published, distributed, or sold. The contract must include a specific description of the goods, services, or discount privileges which the sponsor will provide in exchange for each coupon presented for redemption, the hours during each day and the days during each week when the coupon will be accepted for redemption by the sponsor, the expiration date of the coupon, and all purchases required of a coupon holder as a condition of redemption and any other restrictions or limitations imposed on the redemption of the coupons by the sponsor. The promoter must not represent, either directly or by implication, that the number of coupons presented to the sponsor for redemption will be less than the total number of coupons printed, sold, or distributed, or make any promises or representation inconsistent with or contrary to the terms of the written contract between the promoter and sponsor.

There are no specific requirements for loyalty programs in Tennessee, but you must comply with the Tennessee Coupon Sales Promotion Act if you offer coupons as part of the loyalty program.

Source(s):

• [3.1] Agreement between promoter and sponsor — Terms and conditions.

Jurisdiction

Tennessee

• Gaming