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

Based on the documents provided, referral bonuses are not specifically mentioned. However, contests that involve prizes or gifts are regulated by the Texas Business and Commerce Code, and there are requirements that must be met.

Requirements for Contests in Texas

  • The offeror must maintain records of the identity and address of each person who is responsible for developing, creating, sponsoring, or implementing any part of the advertising plan or program.
  • The offeror must maintain records that show that the winning numbers have been deposited in the mail or otherwise made available to recipients in accordance with the odds statement provided under Section 621.104(a).
  • The offeror must maintain a copy of each contest solicitation.
  • The offeror must maintain records adequate to determine:
  • the name and address of each contestant;
  • the approximate date each contestant was sent the solicitation used in the contest;
  • the number of major prizes awarded;
  • the date each major prize was awarded;
  • the name, brand, type, model number, and manufacturer of each prize offered;
  • the method of computing the retail value of each prize;
  • the method of selecting major prize winners;
  • the name and address of each major prize winner; and
  • the facts on which each representation or disclosure made in connection with the contest was based and from which the validity of the representation or disclosure can be determined.

Referral Bonus Requirements

Since referral bonuses are not specifically mentioned in the documents provided, it is unclear if there are any specific requirements for them. However, if the referral bonus is considered a prize or gift, the requirements listed above would apply.

It is recommended that you consult with a legal professional to ensure that your referral bonus program complies with all applicable laws and regulations.

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Source(s):
Jurisdiction

Texas