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Current as of January 01, 2024 | Updated by FindLaw Staff
(a) In this chapter:
(1) “Contest” means a promotional device in which:
(A) a person is offered, as an inducement to attend a sales presentation, a chance to win or receive a prize by complying with specified entry requirements;
(B) the winner or recipient of a prize is determined by random selection; and
(C) all offered prizes are awarded.
(2) “Contest period” means the duration of a contest from the beginning date to the ending date.
(3) “Drawing” means a contest in which the recipient of a prize is determined from all of the entries received.
(4) “Entry form” means a card, letter, entry blank, token, or similar device that identifies a contestant by:
(A) name;
(B) number, letter, or symbol; or
(C) both name and number, letter, or symbol.
(5) “Gift” means an item of value that is offered, transferred, or given to a person as an inducement to attend a sales presentation but that is not offered, transferred, or awarded through a contest. The term does not include a manufacturer's rebate or discount available to the public.
(6) “Major prize” means a prize that has an actual unit cost to the offeror of at least $250.
(7) “Matched contest” means a contest in which:
(A) the winning numbers are preselected, printed on an entry form, and distributed to the public; and
(B) the numbers printed on the entry forms are subsequently matched with the list of winning numbers at a sales location to determine prize eligibility.
(8) “Minor prize” means a prize that:
(A) has an actual unit cost to the offeror of less than $250; and
(B) is transferred to a person who:
(i) attends a sales presentation; and
(ii) is not the winner of a major prize.
(9) “Odds of winning” means a ratio in which:
(A) the numerator equals the actual number of units of an identified prize to be given away during a contest period; and
(B) the denominator equals the number of entry forms distributed or reasonably anticipated to be distributed during the contest period.
(10) “Offeror” means a person who solicits another person to attend a sales presentation.
(11) “Person” includes an individual, a corporation, a firm, and an association.
(12) “Prize” means an item of value that is offered, awarded, or given to a person through a contest. The term does not include a manufacturer's rebate or discount available to the public.
(13) “Sales presentation” means a transaction or occurrence in which a consumer is solicited to execute a contract that obligates the consumer to purchase goods or services as defined by Subchapter E, Chapter 17, including:
(A) a timeshare interest as defined by Section 221.002, Property Code; and
(B) a membership interest as defined by Section 222.003, Property Code.
(14) “Winning number” includes a letter or other identifying symbol.
(b) For purposes of Subsection (a)(1)(B), a determination made by random selection does not include the method used by an offeror to identify a person who will be notified of an offer to win a prize.
Cite this article: FindLaw.com - Texas Business and Commerce Code - BUS & COM § 621.003. Definitions - last updated January 01, 2024 | https://codes.findlaw.com/tx/business-and-commerce-code/bus-com-sect-621-003/
FindLaw Codes may not reflect the most recent version of the law in your jurisdiction. Please verify the status of the code you are researching with the state legislature or via Westlaw before relying on it for your legal needs.
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