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Can I offer contests that involve website promotions in Louisiana? What are the requirements?
Yes, you can offer contests that involve website promotions in Louisiana, but you must comply with the regulations set forth in LARS § 51.1726, LARS § 51.1727, LARS § 51.1721, and LARS § 51.1725.
According to LARS § 51.1726, sweepstakes promotions are allowed in Louisiana, but winners can only be revealed through specific methods such as posting on a printed list, scratch-off tickets or cards, pull-tab tickets or cards, or by contacting the winner in writing or through telephone communication. The Department of Justice, office of attorney general, regulates sweepstakes promotions provided for in this Section and the electronic display of sweepstakes winners as provided for in LARS § 51.1727.
LARS § 51.1727 states that a computer or computer system that is used as part of a sweepstakes promotion shall be used only to allow a person to enter their name and contact information for the purpose of entering into the sweepstakes promotion and to display specific information such as rules, identity and contact information of the persons providing, conducting, and offering the sweepstakes promotion, any prize that may be won during the sweepstakes promotion and the monetary value of such prize, odds of winning a prize in the sweepstakes promotion, laws that govern the operation of sweepstakes promotions, any jurisdiction that does not allow the sweepstakes promotion, and the name or names of the sweepstakes promotion winner, after such winner has been revealed in accordance with the provisions of LARS § 51.1726.
LARS § 51.1721 outlines the prerequisites for lawful promotion of promotional contests. It is unlawful for any person, firm, or corporation to offer in writing a prize or gift to a consumer as part of any advertising or sales promotion plan, if, in order to claim the prize or gift, the consumer is given, invited, required, or requested to submit to a sales presentation or promotional program. Such disclosure must be provided to the consumer at the time he is notified of the prize or gift. The disclosure must contain a full description of the exact prize or gift tendered to the consumer, including its cash value, all terms and conditions attached to the prize or gift, a statement that the consumer is given, invited, required, or requested to submit to a sales presentation or promotional program, and a full description of the product, real estate, investment, services, membership, or any other item to be offered for sale, including the price of the least expensive and the most expensive item or parcel.
LARS § 51.1725 states that no person or entity shall solicit an individual by mail to participate in a contest unless such solicitation contains either of the following: (a) A statement of the odds that a participant making a single entry in such contest has of winning each item offered as a gift, prize, or thing of value. (b) A statement that the odds depend upon the number of entries received.
Therefore, if you plan to offer contests that involve website promotions in Louisiana, you must ensure that you comply with the regulations set forth in LARS § 51.1726, LARS § 51.1727, LARS § 51.1721, and LARS § 51.1725.
Jurisdiction
Louisiana