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Can I offer contests that involve website promotions in California? What are the requirements?

Based on the provided context documents, it appears that contests involving website promotions are not specifically addressed. However, there are regulations related to raffles, prizes, and promotions that may be relevant.

Requirements for Raffles and Prizes

If the contest involves a raffle or prizes, the organization conducting the contest must comply with the reporting requirements outlined in 11 CACR Section 420. This includes filing a report with the DOJ on or before February 1 of each year that contains all required information and is signed by a responsible fiduciary of the organization attesting that the information provided is true and correct.

If the prize consists of a food product, the tax does not apply. An operator who delivers both food items and nonfood items as prizes may take a deduction of that percentage of his total receipts which equals the percentage of the cost to him of the food items to the total cost to him of all merchandise purchased for delivery as prizes. [2.1]

Requirements for Promotions

If the contest involves promotions, there are regulations related to discounts, coupons, rebates, and other incentives outlined in 18 CACR Section 1671.1. Under certain conditions, payments received by the retailer in the form of rebates or other types of payments or credits for products sold at retail are included in the retailer’s gross receipts or sales price from the sale of the product. [2.2]

Registration

Every eligible organization shall, before conducting any raffle in California, be registered with DOJ in the Nonprofit Raffle Program. The organization shall submit a registration application on Application for Registration/Nonprofit Raffle Program (“Form CT-NRP-1” Rev. 08/2022), the form prescribed by DOJ, which shall contain all of the information required, including a statement signed by a responsible fiduciary of the eligible organization attesting that the information provided is true and correct. [1.2]

Conclusion

Based on the provided context documents, there are no specific regulations related to contests involving website promotions. However, if the contest involves raffles or prizes, the organization conducting the contest must comply with the reporting requirements outlined in 11 CACR Section 420 and register with DOJ in the Nonprofit Raffle Program. If the contest involves promotions, there are regulations related to discounts, coupons, rebates, and other incentives outlined in 18 CACR Section 1671.1.

Source(s):
Jurisdiction

California