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Texas Business & Commerce Code - Section 40.006. Raincheck Requirements

Legal Research Home > Texas Lawyer > Business & Commerce Code > Texas Business & Commerce Code - Section 40.006. Raincheck Requirements

§ 40.006. RAINCHECK REQUIREMENTS. (a) Subject to Subsections (d)-(g), an offeror may not fail: (1) in a gift offer to provide each gift as represented to each person who attends a sales presentation; or (2) in a matched contest to award each prize as represented on the entry form to each person who presents a winning entry. (b) Except as provided by Subsections (d)-(g), an offeror may not provide a coupon book, a discount book, or a certificate or voucher that entitles the holder to redeem the certificate or voucher for a gift or prize required to be available under this section. (c) An offeror shall have available at the sales location a sufficient quantity of: (1) each gift to meet the reasonable anticipated response to the offer; or (2) each prize to meet the reasonable anticipated number of prize winners. (d) If the response to an offer exceeds the number of gifts, or of major or minor prizes, available at the sales location, the offeror, at the time of the visit or, if a sales presentation is required, at the conclusion of the sales presentation, shall tender to the recipient of the offer a raincheck for the gift or prize represented in the offer. The offeror shall send that exact gift or prize to the recipient, without cost to the recipient, not later than the 14th day after the date on which the recipient visits the sales location or attends the sales presentation. The offeror shall obtain a return receipt from the shipper verifying that the gift or prize was delivered to the recipient. (e) If, after the expiration of 14 days from the date of issuance of the raincheck, the offeror has failed to send the gift or minor prize, the offeror, not later than the 15th day after the date of issuance of the raincheck, shall send to the recipient of the raincheck a check or money order in the amount of $100 payable to the recipient. The offeror shall obtain a return receipt from the United States Postal Service that verifies that the check or money order was delivered to the recipient. (f) If the offeror knows at the time the recipient of the offer visits the sales location or attends a sales presentation that the gift or minor prize will not be available within 14 days of the date of the visit or attendance, the offeror shall at the time of the visit or at the conclusion of the sales presentation tender to the recipient, by cash or check, the amount of $100. (g) If the gift or prize involves lodging, airfare, a trip, or a recreational activity, the offeror may give the recipient a certificate that evidences the recipient's right to the gift or prize. The offeror may require a refundable deposit if the requirement of a deposit is fully disclosed. Added by Acts 1997, 75th Leg., ch. 1008, § 4, eff. Sept. 1, 1997.

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Last modified: August 10, 2007