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Texas Business & Commerce Code - Section 40.066. Matched Contest; Prohibited Acts

Legal Research Home > Texas Lawyer > Business & Commerce Code > Texas Business & Commerce Code - Section 40.066. Matched Contest; Prohibited Acts

§ 40.066. MATCHED CONTEST; PROHIBITED ACTS. (a) A person engaged in the preparation, promotion, sale, distribution, or use of a matched contest may not: (1) use the term "prize" or another similar term in a false, misleading, or deceptive manner; (2) fail to disclose the retail value of the prize; (3) fail to disclose clearly and conspicuously in at least 10-point type that airfare, lodging, or both are not included as part of a prize that is a trip or recreational activity to the extent that either or both are not included; (4) represent that a person solicited to enter a contest is a "finalist," "major award winner," "grand prize recipient," or "winner" or that a person has "won," "will win," or "will be awarded" or use words or phrases of similar meaning when a person is being solicited to enter or participate in a contest, unless the representation is true; (5) represent that a prize has a sponsor, approval, characteristic, ingredient, use, benefit, quantity, status, affiliation, connection, or identity that the prize does not have; (6) represent that a prize is of a particular standard, quality, grade, style, or model if the prize is of another; (7) misrepresent the odds of winning a prize; (8) misrepresent the rules or terms of participation in a contest; (9) represent that: (A) any number, ticket, coupon, symbol, or entry form confers or will confer an advantage on a person that another person does not have; (B) a person is more likely to win a prize than another person; or (C) a number, ticket, coupon, symbol, or entry form has some value that other entries do not have; (10) fail to obtain a person's express written consent before using that person's name for a promotional purpose; (11) use or distribute simulated checks or currency or other simulated items of value unless the words "SPECIMEN--NON-NEGOTIABLE" are clearly and conspicuously printed on those items in at least 18-point type; (12) use a word or phrase that simulates or causes confusion with: (A) a document issued by an officer of a court of any jurisdiction or that implies the offeror is sending a court or legal document; or (B) the seal or name of a real or fictitious governmental entity or that implies that the offeror is a governmental entity. (b) A person may not use a matched contest unless the person clearly and conspicuously discloses in writing in the offer: (1) the fact that attendance at a sales presentation is required; (2) the name and street address of the person who is soliciting attendance at a sales presentation; (3) a description of the product or service being sold; (4) each requirement, restriction, qualification, and other condition that must be satisfied for a person to enter a contest, including: (A) any deadline by which the person must visit the location or attend the sales presentation to qualify to receive a prize; and (B) the approximate duration of the sales presentation; (5) a statement of the odds of winning each prize offered, expressed as a ratio in Arabic numerals; (6) the geographical area or states in which the contest will be conducted; (7) the beginning and ending dates of the contest period; (8) the identity and address of each person responsible for the awarding of the prizes; (9) the fact that all unclaimed prizes will be awarded by a drawing and the date of the drawing; and (10) all other rules and terms of the contest. Added by Acts 1997, 75th Leg., ch. 1008, § 4, eff. Sept. 1, 1997.

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Last modified: August 10, 2007