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Can I offer contests that involve social media promotions in New Mexico? What are the requirements?

Based on the information provided in the context documents, it is possible to offer contests that involve social media promotions in New Mexico. However, there are certain requirements that must be met in order to comply with New Mexico state law.

Requirements for Contests Involving Social Media Promotions in New Mexico

According to the New Mexico Unfair Practices Act and False Advertising Act [1.2], it is an unfair or deceptive trade practice for any person to sponsor, use or promote in any manner any game promotion, whether involving skill or chance, which requires consideration in order to participate, unless certain disclosures are clearly and conspicuously made in each and every representation made in connection with the game promotion, including all advertising and promotional literature [1.1]. These disclosures include:

  • The number of prizes to be awarded in each category or denomination, and a complete description of all prizes, including the exact monetary amount of cash prizes. If a prize is to be shared in the event of multiple winners, that fact should be disclosed, as well as the method by which the allocation will be made, and the approximate amount of the reduced share.
  • The odds of winning each stated prize. This information should be based on statistics on actual numbers of participants in prior similar game promotions, if available; or upon a reasonable estimate of anticipated participation in the promotion. If the promotion has multiple stages, the odds of reaching each stage should be disclosed.
  • The total amount of consideration necessary in order to be eligible for the first prize in each category or denomination. If the promotion has multiple stages, each involving separate consideration, the amounts involved should be totaled to reflect the full consideration which would be required by a participant were he successful at each stage.
  • The manner in which winners in each category or denomination shall be selected.
  • The complete name and address of the sponsor, user or promoter.
  • The geographic area covered.
  • The opening date and scheduled termination date.
  • The scheduled announcement date of the winners and the date and manner of award of prizes.

Additionally, if the contest involves social media promotions, the following requirements must be met:

  • All small loan businesses operating one or more marketing site(s) shall provide a disclosure in a location or locations on the marketing site that will be easily accessible and visible to consumers accessing such marketing site with the following words “TO REPORT A PROBLEM OR COMPLAINT WITH THIS LENDER, YOU MAY WRITE OR CALL ____.” The blank shall be filled in with a position title, address, phone number, and email address of the company’s problem resolution person [2.1].
  • The contest must comply with all regulations set by the New Mexico State Fair Commission, including regulations concerning the inspection of concessions and exhibit booths, as well as regulations pertaining to permits that are required by New Mexico state law [3.2][3.3][5.1].
  • The contest must comply with all applicable insurance requirements, including retaining comprehensive general liability insurance in up to the amount of one million dollars, in addition to naming the New Mexico state fair as additionally insured [3.4].

Therefore, in order to offer contests that involve social media promotions in New Mexico, it is important to ensure that all necessary disclosures are made and that all applicable regulations and insurance requirements are met.

Source(s):
Jurisdiction

New Mexico