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Can I offer a loyalty program for my customers in North Dakota? What are the requirements?

Loyalty Program Requirements in North Dakota

Based on the provided context documents, there are no specific regulations or restrictions on offering a loyalty program for customers in North Dakota. However, there are certain requirements that must be met by discount plan organizations offering such programs.

Registration Requirements for Discount Plan Organizations

Discount plan organizations must be authorized to transact business in North Dakota through the Secretary of State and registered by the Commissioner to operate as a discount plan organization [1.2]. An application for registration must be filed with the Commissioner and must demonstrate, set forth, or be accompanied by various information, including a list of the names, addresses, official positions, and biographical information of each individual responsible for conducting the applicant’s affairs, a copy of any contract made or arrangement to be made between the applicant and any individual listed, all marketing materials to be used in connection with marketing a discount plan in North Dakota, a description of member complaint procedures to be established and maintained by the applicant, and a copy of the applicant’s cancellation and refund policy [1.2].

Charges and Fees

Discount plan organizations may charge a periodic charge as well as a reasonable one-time processing fee for a discount plan. If a member cancels the member’s membership in the discount plan organization within the first thirty days after the date of receipt of the signed consumer contract or agreement, the member shall receive a reimbursement of all periodic charges. If the discount plan organization cancels a membership for any reason other than nonpayment of charges by the member, the discount plan organization shall make a pro rata reimbursement of all periodic charges to the member [1.3].

Record Filing and Retention Requirements

Upon demand by the Commissioner, a discount plan organization shall file with the Commissioner a list of prospective member fees and charges associated with the discount plan. A copy of every form to be used by a discount plan organization, including the form for the written document demonstrating membership in the plan and all advertising, marketing materials, and brochures, must be retained by such organization and available for inspection by the Commissioner for at least five years from the date on which the form was last used [1.4].

In summary, while there are no specific requirements or restrictions on offering a loyalty program for customers in North Dakota, discount plan organizations must be registered with the Commissioner and comply with various requirements related to charges and fees, record filing and retention, and marketing materials.

Source(s):
Jurisdiction

North Dakota