Texas Business & Commerce Code - Section 40.066. Matched Contest; Prohibited Acts
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§ 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.
Section: 40.035 40.036 40.061 40.062 40.063 40.064 40.065 40.066 40.067 40.091 40.092 40.093 40.094 40.095 40.121
Last modified: August 10, 2007
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