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Can I offer contests that involve text message promotions in North Carolina? What are the requirements?

Contests and Text Message Promotions in North Carolina

Based on the provided context documents, businesses can offer contests that involve text message promotions in North Carolina as long as they comply with the general requirements for promotions and the TCPA and FTC regulations for text message promotions.

General Requirements for Promotions

Businesses conducting promotions in North Carolina must comply with the following requirements:

  • No purchase necessary: Participants must be able to enter the promotion without making a purchase or payment.
  • Official rules: The promotion must have official rules that include the eligibility requirements, the start and end dates, the method of entry, the prize(s), and the odds of winning.
  • Fairness: The promotion must be conducted fairly and impartially.
  • Disclosure: The promotion must disclose the approximate retail value of the prize(s) and the odds of winning.
  • Registration: If the total value of the prizes is over $5,000, the promotion must be registered with the North Carolina Department of Justice.

Text Message Promotions

When conducting text message promotions, businesses must also comply with the Telephone Consumer Protection Act (TCPA) and the Federal Trade Commission (FTC) regulations. The TCPA prohibits businesses from sending unsolicited text messages to consumers, and requires businesses to obtain prior express written consent before sending promotional text messages. The FTC requires businesses to disclose the terms and conditions of the promotion clearly and conspicuously, and to provide an easy opt-out mechanism for consumers who no longer wish to receive text messages.

Restrictions on Telephone Solicitations

Businesses must also comply with the restrictions on telephone solicitations outlined in NCGS 75-102. This includes not making a telephone solicitation to a telephone subscriber’s telephone number if the telephone subscriber’s telephone number appears in the latest edition of the “Do Not Call” Registry, and complying with the time requirements for making telephone solicitations.

Bond Requirement for Prizes and Gifts

If the promotion offers any gift or prize with an actual or represented market value of $500 or more, the telephonic seller must notify the Secretary in writing of the details of the promotion, fully describing the nature and number of all gifts or prizes and their current market value, the seller’s rules and regulations governing the promotion, and the date the gifts or prizes are to be awarded. The telephonic seller must also post a bond with the Secretary for the market value or the represented value, whichever is greater, of all gifts or prizes represented as available under the promotion. The bond must be issued by a surety company authorized to do business in North Carolina.

Conclusion

In summary, businesses can offer contests that involve text message promotions in North Carolina as long as they comply with the general requirements for promotions, the TCPA and FTC regulations for text message promotions, and the restrictions on telephone solicitations and bond requirements for prizes and gifts. It is recommended that businesses consult with legal counsel to ensure compliance with all applicable laws and regulations.

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Source(s):
Jurisdiction

North Carolina