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

Referral Program Requirements in Nevada

Nevada law does not have specific requirements for referral programs. However, businesses offering referral programs must comply with general business regulations and consumer protection laws.

General Business Regulations

To operate a business in Nevada, you must register with the Nevada Secretary of State and obtain any necessary licenses and permits. You can register your business online at the Nevada Secretary of State website ^[1.1].

If your referral program involves acting as an exchange facilitator, you must obtain a license from the Nevada Division of Mortgage Lending. To apply for a license, you must submit an application, pay the required fee, and provide information such as your business name, address, and tax identification number. You must also provide a current certificate of good standing from the state or jurisdiction in which your business is formed ^[2.1].

Consumer Protection Laws

Nevada has several consumer protection laws that businesses must comply with, including the Nevada Deceptive Trade Practices Act (NDTPA) and the Nevada Consumer Protection Act (NCPA). These laws prohibit businesses from engaging in deceptive or unfair trade practices, such as false advertising or misrepresenting the terms of a referral program ^[3.1].

Additionally, businesses must ensure that their referral program does not violate any federal laws, such as the Federal Trade Commission Act (FTC Act). The FTC Act requires businesses to disclose any material connections between the business and the person making the referral, such as compensation or incentives ^[1.1].

Conclusion

While Nevada does not have specific requirements for referral programs, businesses must comply with general business regulations and consumer protection laws. It is important to ensure that your referral program is transparent and does not violate any laws or regulations. If your referral program involves acting as an exchange facilitator, you must obtain a license from the Nevada Division of Mortgage Lending.

Source(s):

• [1.1] Application for license: Additional requirements; fingerprints; grounds for refusal to issue license. [Effective until the date on which the Commissioner of Financial Institutions notifies the Governor and the Director of the Legislative Counsel Bureau that the Nationwide Multistate Licensing System and Registry has sufficient capabilities to allow the Commissioner to carry out the provisions of chapter 347, Statutes of Nevada 2021, at page 2030.]
• [2.1] License required; regulations; application; fingerprints; issuance and renewal of license. [Effective until the date on which the Commissioner of Financial Institutions notifies the Governor and the Director of the Legislative Counsel Bureau that the Nationwide Multistate Licensing System and Registry has sufficient capabilities to allow the Commissioner to carry out the provisions of chapter 347, Statutes of Nevada 2021, at page 2030.]
• [3.1] Qualifications of applicant; requirements for issuance; notice of refusal to issue certificate; request for hearing; withdrawal of application. [Effective until the date on which the Commissioner of Financial Institutions notifies the Governor and the Director of the Legislative Counsel Bureau that the Nationwide Multistate Licensing System and Registry has sufficient capabilities to allow the Commissioner to carry out the provisions of chapter 347, Statutes of Nevada 2021, at page 2030.]

Jurisdiction

Nevada

• General