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Can I offer contests that involve text message promotions in Texas? What are the requirements?
Based on the documents provided, here are the requirements for offering contests in Texas:
Requirements for Contests Other Than Drawings
If you are offering a contest other than a drawing, you must maintain records of the identity and address of each person responsible for developing, creating, sponsoring, or implementing any part of the advertising plan or program, 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), a copy of each contest solicitation, and 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 [1.1].
Requirements for Matched Contests
If you are offering a matched contest, you must determine the identity and number of the major prizes to be awarded before the contest begins and disclose them on each entry form distributed. Each major prize identified on an entry form for a matched contest shall be awarded. The contest period for a matched contest may not exceed 12 calendar months. If, during the contest period for a matched contest, a winning number is not presented or matched for a major prize, the offeror shall conduct a drawing from the names of those individuals who attended a sales presentation during the contest period. The offeror shall conduct the drawing not later than the 60th day after the date the contest period ends. Each major prize identified on the entry forms distributed during the contest period that was not previously awarded shall be awarded at the time of the drawing [1.3].
Required Disclosures Relating to Matched Contests
If you are using a matched contest, you must clearly and conspicuously disclose in writing in the offer that attendance at a sales presentation is required, the name and street address of the person who is soliciting attendance at a sales presentation, a description of the product or service being sold, each requirement, restriction, qualification, and other condition that must be satisfied for a person to enter the contest, including any deadline by which the person must visit the location or attend the sales presentation to qualify to receive a prize and the approximate duration of the sales presentation, a statement of the odds of winning each prize offered, expressed as a ratio in Arabic numerals, the geographical area or states in which the contest will be conducted, the beginning and ending dates of the contest period, the identity and address of each person responsible for awarding prizes, that all unclaimed prizes will be awarded by a drawing and the date of the drawing, and all other rules and terms of the contest. A person engaged in the preparation, promotion, sale, distribution, or use of a matched contest shall disclose the retail value of a prize and clearly and conspicuously in at least 10-point type that airfare, lodging, or both are not included as part of a prize that is a trip or recreational activity to the extent that either or both are not included [1.5].
Civil Penalty
If you violate the rules for offering contests in Texas, the court shall award the attorney general a civil penalty of not less than $5,000 or more than $50,000 for each violation found. If the material accompanying or relating to a sweepstakes or an offer to enter a sweepstakes contains multiple statements, implications, representations, or offers that are prohibited by this chapter, each statement, implication, representation, or offer is a separate violation and results in a separate civil penalty. Each individual who receives the material constitutes an additional and separate group of violations of this chapter [1.8].
Based on the documents provided, there are no specific requirements for offering contests that involve text message promotions in Texas. However, you must comply with the general requirements for offering contests in Texas, as outlined above.
Source(s):
- [1.1] REQUIRED RECORDS FOR CONTESTS OTHER THAN DRAWINGS.
- [1.3] REQUIREMENTS FOR MATCHED CONTEST.
- [1.5] REQUIRED DISCLOSURES RELATING TO MATCHED CONTEST.
- [1.8] CIVIL PENALTY.
Jurisdiction
Texas