Can I offer contests that involve merchandise prizes in Tennessee? What are the requirements?

Yes, you can offer contests that involve merchandise prizes in Tennessee. However, there are certain requirements that must be met.

Requirements for Offering Contests with Merchandise Prizes in Tennessee

According to TNCO 47-25-803, any promoter who wishes to offer contests with merchandise prizes must have a prior contract or agreement in writing with the sponsor. The contract must set 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.

Additional Information

There are also other regulations that apply to contests and prizes in Tennessee. For example, TNCO 3-17-110 requires that the name of the nonprofit organization on whose behalf the event is being conducted must be printed on the ticket, share, chance, or other similar record. Additionally, all cash prizes or awards exceeding fifty dollars ($50.00) must be paid by check from a designated account of the organization to a named individual. In the case of non-cash prizes or awards, payment must be in the form of goods or services and, if applicable, by an appropriate legal instrument including, but not limited to, deeds, titles, and gift certificates. Checks or other legal instruments payable to “cash” or “bearer” are expressly prohibited.

Conclusion

In conclusion, contests that involve merchandise prizes are allowed in Tennessee, but promoters must have a prior contract or agreement in writing with the sponsor and must comply with the requirements set forth in TNCO 47-25-803. Additionally, there are other regulations that apply to contests and prizes in Tennessee, such as TNCO 3-17-110.

Jurisdiction

Tennessee

• Gaming