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

Requirements for Contests Involving Website Promotions in Texas

Contests involving website promotions are allowed in Texas, but they must comply with the state’s regulations on contests and sweepstakes. The following are the requirements for contests other than drawings in Texas [1.1]:

  • The offeror must maintain records of the identity and address of each person who is responsible for developing, creating, sponsoring, or implementing any part of the advertising plan or program.
  • The offeror must maintain 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).
  • The offeror must keep a copy of each contest solicitation.
  • The offeror must maintain 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.

Postal receipt records, affidavits of mailing, and a list of winners or recipients of the major prizes satisfy the requirements of Subsection (a)(2) [1.1].

Required Disclosures for Contests Involving Website Promotions in Texas

The offeror must clearly and conspicuously disclose in writing in the offer [1.4]:

  • 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.
  • 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 [1.4].

Conclusion

Contests involving website promotions are allowed in Texas, but they must comply with the state’s regulations on contests and sweepstakes. The offeror must maintain records and make required disclosures to ensure transparency and fairness in the contest.

Source(s):
Jurisdiction

Texas