Can I offer a referral program for my customers in Connecticut? What are the requirements?

To offer a referral program in Connecticut, you must comply with the state’s social referral service contract requirements ^[1.1]. These requirements state that:

• The contract for social referral services must provide that the buyer may cancel the contract within three business days after the date of receipt by the buyer of a copy of the written contract or three business days after the social referral service is made available to the buyer, whichever is later, by written notice, delivered by certified or registered United States mail to the seller at an address which shall be specified in the contract.
• The seller must furnish to the buyer a fully completed copy of the contract at the time of its execution, which shows the date of the transaction and contains the name and address of the seller, and in the immediate proximity to the space reserved in the contract for the signature of the buyer and in not less than ten-point boldface type, a statement in substantially the following form: “YOU, THE BUYER, MAY CANCEL THIS CONTRACT AT ANY TIME PRIOR TO MIDNIGHT OF THE THIRD BUSINESS DAY AFTER YOUR RECEIPT OF THIS CONTRACT OR AFTER THE SOCIAL REFERRAL SERVICE HAS BEEN MADE AVAILABLE FOR YOUR USE, WHICHEVER IS LATER. SEE THE ATTACHED NOTICE OF CANCELLATION FOR AN EXPLANATION OF THIS RIGHT.”
• At the time the buyer signs the social referral service contract, a statement captioned “NOTICE OF CANCELLATION” shall be contained in the contract and shall contain, in not less than ten-point boldface type, the following information and statements: “NOTICE OF CANCELLATION …. (Date of Transaction) YOU MAY CANCEL THIS CONTRACT, WITHOUT ANY PENALTY OR OBLIGATION, WITHIN THREE BUSINESS DAYS AFTER YOUR RECEIPT OF THIS CONTRACT OR AFTER THE SOCIAL REFERRAL SERVICE HAS BEEN MADE AVAILABLE FOR YOUR USE, WHICHEVER IS LATER BY MAILING THIS SIGNED AND DATED NOTICE OF CANCELLATION BY CERTIFIED OR REGISTERED UNITED STATES MAIL TO THE SELLER AT THE FOLLOWING ADDRESS: …. . IF YOU CANCEL, ANY PAYMENTS MADE BY YOU UNDER THE CONTRACT WILL BE RETURNED WITHIN TEN BUSINESS DAYS FOLLOWING RECEIPT BY THE SELLER OF YOUR CANCELLATION NOTICE.”
• All moneys paid pursuant to any contract for social referral services shall be refunded within ten business days of receipt of the notice of cancellation.

Therefore, if you plan to offer a referral program, you must ensure that your contract complies with these requirements. You must provide your customers with a written contract that includes the above statements and allows them to cancel the contract within three business days of receipt. You must also provide a notice of cancellation that includes the required information.

If you have any further questions or concerns, it is recommended that you consult with a legal professional.

Source(s):

• [1.1] Contract requirements.

Jurisdiction

Connecticut

• General