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

Based on the documents provided, offering contests that involve referral bonuses in Vermont is allowed, but there are certain requirements that must be followed to avoid violating consumer protection laws.

Requirements for Offering Contests with Referral Bonuses in Vermont

According to VTCR 06-031-003 § 109.01, it is considered 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.

Therefore, to offer contests with referral bonuses in Vermont, the following requirements must be met:

1. The contest must not be deceptive or misleading as to the chances of winning, the number of winners, the value of the prizes, or the availability of the prize.
2. The contest must not require any kind of entry fee, service charge, purchase, or similar consideration in order to enter or to continue to remain eligible.
3. The contest must not use publications, literature, written or verbal promotion that is false, deceptive, or misleading.

Additionally, according to VTCR 06-031-003 § 109.02, it is considered an unfair and deceptive trade act and practice in commerce for any person to represent that any other person is a “winner” or has been “selected” or is otherwise being included in a select group for receipt of a prize or an opportunity when, in fact, the enterprise is a promotional scheme designed to make contact with prospective customers and all or a substantial number of those “entering” receive the same “prize” or “opportunity.”

Therefore, when offering contests with referral bonuses in Vermont, it is important to ensure that the contest is not designed solely to make contact with prospective customers and that the referral bonuses are actually awarded to the winners.

Conclusion

In conclusion, offering contests with referral bonuses in Vermont is allowed, but it is important to follow the requirements outlined in VTCR 06-031-003 § 109.01 and VTCR 06-031-003 § 109.02 to avoid violating consumer protection laws.

Jurisdiction

Vermont

• Gaming