Can I offer contests that involve referral bonuses in Louisiana? What are the requirements?

Requirements for Offering Contests with Referral Bonuses in Louisiana

If you plan to offer contests that involve referral bonuses in Louisiana, you must comply with the requirements outlined in LARS § 51.1721. According to this statute, it is unlawful to offer a prize or gift to a consumer as part of any advertising or sales promotion plan if, in order to claim the prize or gift, the consumer is given, invited, required, or requested to submit to a sales presentation or promotional program, unless written or verbal disclosure is made at the time of notification of the prize or gift. The disclosure must contain a full description of the exact prize or gift, all terms and conditions attached to the prize or gift, a statement that the consumer is given, invited, required, or requested to submit to a sales presentation or promotional program, and a full description of the product, real estate, investment, services, membership, or any other item to be offered for sale, including the price of the least expensive and the most expensive item or parcel.

Additionally, sweepstakes promotions are regulated by LARS § 51.1726, which outlines the manner in which the winner of any sweepstakes promotion shall be revealed. The winner may be revealed through posting on a printed list, the use of scratch-off tickets or cards, pull-tab tickets or cards, or by contacting the winner in writing or through telephone communication.

The electronic display of sweepstakes winners is also regulated by LARS § 51.1727, which outlines the information that must be displayed on a computer or computer system used as part of a sweepstakes promotion. This includes rules that govern the sweepstakes promotion, identity and contact information of the persons providing, conducting, and offering the sweepstakes promotion, any prize that may be won during the sweepstakes promotion and the monetary value of such prize, odds of winning a prize in the sweepstakes promotion, laws that govern the operation of sweepstakes promotions, any jurisdiction that does not allow the sweepstakes promotion, and the name or names of the sweepstakes promotion winner, after such winner has been revealed in accordance with the provisions of LARS § 51.1726.

It is important to note that the provisions of LARS § 51.1726 and LARS § 51.1727 do not apply to entities holding sweepstakes or contests to which only the entities’ employees may enter, persons or entities licensed or permitted pursuant to the provisions of Titles 4 and 27 of the Louisiana Revised Statutes of 1950, or any sweepstake, contest, or similar activity authorized and regulated by Title 26 of the Louisiana Revised Statutes of 1950.

Therefore, if you plan to offer contests that involve referral bonuses in Louisiana, you must ensure that you comply with the requirements outlined in LARS § 51.1721, LARS § 51.1726, and LARS § 51.1727. Failure to comply with these requirements may be considered unlawful.

Jurisdiction

Louisiana

• Gaming