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

Based on the information provided in the context documents, it is possible to offer contests that involve loyalty programs in Vermont. However, there are certain requirements that must be met in order to comply with Vermont law.

Requirements for Loyalty, Award, or Promotional Gift Certificates

According to 8 VTST 2702a, any loyalty, award, or promotional gift certificate must clearly and legibly set forth the following disclosures, as applicable:

• A statement indicating that the gift certificate is issued for loyalty, award, or promotional purposes, which shall be included on the front of the gift certificate;
• The expiration date for both the paid value of the gift certificate, if any, and the promotional value of the gift certificate, if any, which shall be included on the front of the gift certificate;
• The amount of any fees that may be imposed in connection with the gift certificate and the conditions under which they may be imposed, which shall be provided on or with the gift certificate; and
• If any fee is assessed against the gift certificate, a toll-free telephone number and, if one is maintained, a website address that a consumer may use to obtain fee information, which shall be included on the gift certificate.

Requirements for Contests

According to VTCR 06-031-003 § 109.01, it is an unfair and deceptive trade act and practice in commerce for any person to solicit any other person to engage in any kind of a game of skill, contest, sweepstakes, giveaway or other promotion which:

• Is deceptive or misleading as to chances of winning, the number of winners, the value of the prizes, or the availability of the prize;
• Requires any kind of entry fee, service charge, purchase or similar consideration in order to enter or to continue to remain eligible; or,
• Uses publications, literature, written or verbal promotion that is false, deceptive or misleading.

Vermont Consumer Protection Act

It is important to note that a violation of the above requirements may also be a violation of the Vermont Consumer Protection Act, as stated in 8 VTST 2709. A consumer may bring a private action under this chapter or under 9 V.S.A. chapter 63 for any violation of this chapter.

Therefore, in order to offer contests that involve loyalty programs in Vermont, it is important to ensure that the contest meets the requirements outlined above and complies with the Vermont Consumer Protection Act.

Jurisdiction

Vermont

• Gaming