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Can I offer a loyalty program for my customers in Rhode Island? What are the requirements?

Yes, you can offer a loyalty program for your customers in Rhode Island. However, there are certain requirements that you need to comply with.

Requirements for Offering a Loyalty Program in Rhode Island

According to [1.1]" >280 RICR 20-70-56.9, if a retailer offers a loyalty discount card at no cost to any customer which can be used for selected discounts and savings when presented at the register and the discounts are identified on the register tape, either on an item by item basis or as a total savings at the end of the register tape, the discounts are not included in the sales price if there is no reimbursement received from a manufacturer or other third party. In the case of the loyalty discount card, where the retailer has an agreement with the manufacturer to reimburse some of the discount, the discount is not included in the sales price unless it is identified on the register tape as a “manufacturer’s discount.”

Therefore, if you offer a loyalty program, you need to ensure that the discounts are identified on the register tape and are not included in the sales price unless it is identified as a “manufacturer’s discount.”

Additionally, you need to comply with the registration requirements for discount medical plan organizations as per [3.1]" >230 RICR 20-30-13.3. Before doing business in or from Rhode Island, you need to complete an application for a certificate of registration and pay a non-refundable fee of two hundred and fifty dollars ($250) made payable to the General Treasurer, State of Rhode Island. Once the application has been filed, the Commissioner shall review the application and notify the applicant of any deficiency therein. The ninety (90) day review period shall not commence until the Commissioner has received a completed application.

Conclusion

In conclusion, you can offer a loyalty program for your customers in Rhode Island, but you need to ensure that the discounts are identified on the register tape and comply with the registration requirements for discount medical plan organizations.

Source(s):
Jurisdiction

Rhode Island