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Statutes > Texas > Business-and-commerce-code > Title-13-contests-and-other-promotions > Chapter-622-sweepstakes

BUSINESS AND COMMERCE CODE

TITLE 13. CONTESTS AND OTHER PROMOTIONS

CHAPTER 622. SWEEPSTAKES

SUBCHAPTER A. GENERAL PROVISIONS

Sec. 622.001. DEFINITIONS. In this chapter:

(1) "Credit card" means a card that, if covered by the law of

this state, would be subject to a lender credit card agreement,

as defined by Section 301.002, Finance Code, except that the term

does not exclude a card that is subject to an agreement under

which:

(A) the obligations are payable in full each month and not

deferred; and

(B) no finance charge is assessed when the obligations are paid.

(2) "Debit card" means a card offered by an institution the

deposits of which are insured by the Federal Deposit Insurance

Corporation or another agency, corporation, or instrumentality

chartered by the United States government.

(3) "Imply" means to use any means by which an implication can

be conveyed, including:

(A) a statement, question, or request;

(B) conduct;

(D) lettering, coloring, font size, font style, or formatting.

(4) "Sweepstakes" means a contest that awards one or more prizes

based on chance or the random selection of entries.

Added by Acts 2007, 80th Leg., R.S., Ch.

885, Sec. 2.01, eff. April 1, 2009.

Sec. 622.002. ACTS CONSTITUTING CONDUCTING SWEEPSTAKES. For

purposes of this chapter, a person conducts a sweepstakes if the

person distributes material that:

(1) promotes a sweepstakes;

(2) describes one or more sweepstakes prizes;

(3) states one or more sweepstakes rules;

(4) includes a current or future opportunity to enter a

sweepstakes; or

(5) provides a method for the recipient of the material to

obtain additional information about a sweepstakes.

Added by Acts 2007, 80th Leg., R.S., Ch.

885, Sec. 2.01, eff. April 1, 2009.

SUBCHAPTER B. APPLICABILITY OF CHAPTER

Sec. 622.051. CHAPTER LIMITED TO SWEEPSTAKES CONDUCTED THROUGH

MAIL; EXCEPTION. (a) This chapter applies only to a sweepstakes

conducted through the mail.

(b) This chapter does not apply to a sweepstakes for which the

only use of the mail is for a consumer to return an entry form to

the sweepstakes sponsor.

Added by Acts 2007, 80th Leg., R.S., Ch.

885, Sec. 2.01, eff. April 1, 2009.

Sec. 622.052. PRIZE VALUE LESS THAN $50,000. (a) This chapter

does not apply to a sweepstakes in which the value of the most

valuable prize is less than $50,000.

(b) For purposes of this section, the value of a prize is the

greatest of the prize's:

(1) face value;

(2) fair market value; or

(3) present financial value.

Added by Acts 2007, 80th Leg., R.S., Ch.

885, Sec. 2.01, eff. April 1, 2009.

Sec. 622.053. ADVERTISEMENT OR INSERT IN MAGAZINE, NEWSPAPER, OR

CATALOG. This chapter does not apply to a sweepstakes conducted

through an advertisement or insert in:

(1) a magazine or newspaper:

(A) that is a publication in which more than 40 percent of the

total column inches in each issue consist of advertising space

purchased by companies other than:

(i) the publisher;

(ii) an affiliate of the publisher; or

(iii) a vendor for the publisher or an affiliate; and

(B) that is a publication for which more than 50 percent of the

total number of copies distributed of each issue are provided to

customers who paid for the copy; or

(2) a catalog that is a promotional booklet listing merchandise

for sale and that:

(A) is at least 24 pages long;

(B) has a circulation of at least 250,000; and

(i) requires customers to go to a physical location to purchase

the advertised items; or

(ii) is published by a company that derives more than 50 percent

of the company's total gross revenue from sales occurring at

physical locations.

Added by Acts 2007, 80th Leg., R.S., Ch.

885, Sec. 2.01, eff. April 1, 2009.

Sec. 622.054. CHARITABLE RAFFLE. This chapter does not apply to

a charitable raffle regulated by Chapter 2002, Occupations Code.

Added by Acts 2007, 80th Leg., R.S., Ch.

885, Sec. 2.01, eff. April 1, 2009.

Sec. 622.055. SWEEPSTAKES REGULATED BY ALCOHOLIC BEVERAGE CODE.

This chapter does not apply to a sweepstakes regulated by the

Alcoholic Beverage Code.

Added by Acts 2007, 80th Leg., R.S., Ch.

885, Sec. 2.01, eff. April 1, 2009.

Sec. 622.056. COMPANY REGULATED UNDER PUBLIC UTILITY REGULATORY

ACT. This chapter does not apply to a company regulated under

Title 2, Utilities Code.

Added by Acts 2007, 80th Leg., R.S., Ch.

885, Sec. 2.01, eff. April 1, 2009.

Sec. 622.057. AIR CARRIER; AIRMAN ASSOCIATION. This chapter

does not apply to:

(1) a company that is an air carrier subject to Title 49, United

States Code; or

(2) a nonprofit association of airmen who are subject to that

title.

Added by Acts 2007, 80th Leg., R.S., Ch.

885, Sec. 2.01, eff. April 1, 2009.

Sec. 622.058. CERTAIN RECREATIONAL EVENTS. This chapter does

not apply to a drawing for the opportunity to participate in a

hunting, fishing, or other recreational event conducted by the

Parks and Wildlife Department.

Added by Acts 2007, 80th Leg., R.S., Ch.

885, Sec. 2.01, eff. April 1, 2009.

Sec. 622.059. CERTAIN FOOD PRODUCTS. This chapter does not

apply to a sweepstakes promoting one or more food products

regulated by the United States Food and Drug Administration or

the United States Department of Agriculture.

Added by Acts 2007, 80th Leg., R.S., Ch.

885, Sec. 2.01, eff. April 1, 2009.

Sec. 622.060. AUDIOVISUAL ENTERTAINMENT WORK, PRODUCT, OR SOUND

RECORDING. This chapter does not apply to a company if 75

percent or more of the company's business is:

(1) the systematic development, planning, and execution of

creating audiovisual entertainment works, products, or sound

recordings; and

(2) the distribution, sale, and marketing of those works,

products, or recordings.

Added by Acts 2007, 80th Leg., R.S., Ch.

885, Sec. 2.01, eff. April 1, 2009.

Sec. 622.061. CABLE SYSTEM. This chapter does not apply to a

company that owns or operates a cable system, as defined by 47

U.S.C. Section 522, as amended.

Added by Acts 2007, 80th Leg., R.S., Ch.

885, Sec. 2.01, eff. April 1, 2009.

SUBCHAPTER C. PROHIBITED ACTS OR CONDUCT

Sec. 622.101. CONNECTING SWEEPSTAKES ENTRY OR OPERATION TO ORDER

OR PURCHASE. (a) A person conducting a sweepstakes may not use a

mechanism for entering the sweepstakes that:

(1) has any connection to ordering or purchasing a good or

service;

(2) is not identical for all individuals entering the

sweepstakes; and

(3) does not have printed on the entry form, in a font size at

least as large as the largest font size used on the entry form,

the following language: "Buying Will Not Help You Win. Your

chances of winning without making a purchase are the same as the

chances of someone who purchases something. It is illegal to

give any advantage to buyers in a sweepstakes."

(b) A person conducting a sweepstakes may not:

(1) require an individual to order, purchase, or promise to

purchase a good or service to enter the sweepstakes;

(2) automatically enter an individual in the sweepstakes because

the individual ordered, purchased, or promised to order or

purchase a good or service; or

(3) solicit business using an order form or purchasing mechanism

that has any role in the operation of the sweepstakes.

of paper that contains both a sweepstakes entry form and an order

form if:

(1) the order form is perforated or detachable; and

(2) the entry form must be separated from the order form and

returned to a different address than the order form.

(d) Subsections (a) and (b)(2) and (3) do not apply to a

sweepstakes offered to promote a credit card or debit card if the

official rules of the sweepstakes provide that consumers are

entered in the sweepstakes based on the number of purchases made

or the amount of money spent. The exception provided by this

subsection applies only to a person offering a sweepstakes who

qualified as an issuer as of January 1, 2001.

(e) Subsections (a) and (b)(2) and (3) do not apply to a company

offering a sweepstakes in which the consumer must go to a

physical location to obtain or use the goods or services being

sold by the company.

Added by Acts 2007, 80th Leg., R.S., Ch.

885, Sec. 2.01, eff. April 1, 2009.

Sec. 622.102. USING MULTIPLE SWEEPSTAKES ENTRY ADDRESSES OR

MULTIPLE PURPOSES FOR ADDRESS. A person conducting a sweepstakes

who provides for entering the sweepstakes by mail may not:

(1) accept entries at more than one address; or

(2) use the address for entry in the sweepstakes for any other

purpose.

Added by Acts 2007, 80th Leg., R.S., Ch.

885, Sec. 2.01, eff. April 1, 2009.

Sec. 622.103. ALLOWING CHOICE OF PRIZE OR INDICATION OF

PREFERRED PRIZE CHARACTERISTICS. A person conducting a

sweepstakes may not:

(1) solicit an individual to enter the sweepstakes by invitation

or other opportunity; and

(2) allow the individual to choose, or indicate the preferred

characteristics of, a prize to be awarded in the sweepstakes

unless the choice or indication:

(A) is made on the sweepstakes entry form; and

(B) does not appear on, and is not in any way connected to, an

order form or other purchasing mechanism.

Added by Acts 2007, 80th Leg., R.S., Ch.

885, Sec. 2.01, eff. April 1, 2009.

Sec. 622.104. SENDING SWEEPSTAKES MATERIAL THAT INCLUDES CERTAIN

STATEMENTS OR IMPLICATIONS. A person conducting a sweepstakes

may not send material accompanying or relating to the sweepstakes

or an offer to enter the sweepstakes that:

(1) states or implies that:

(A) an individual must comply with a restriction or condition to

enter the sweepstakes, unless all individuals entering the

sweepstakes are required to comply with the identical restriction

or condition;

(B) an individual's chances of winning a prize in the

sweepstakes are higher, lower, or different in any way because of

a factor or circumstance that does not relate to the manner in

which a winner is selected;

that is different from the actual time or place at which or

manner in which a winner is selected;

(D) an individual who orders or purchases a good or service will

receive a benefit or be treated differently in the sweepstakes in

comparison to an individual who does not order or purchase a good

or service; or

(E) an individual who does not order or purchase a good or

service will be disadvantaged or treated differently in the

sweepstakes in comparison to an individual who orders or

purchases a good or service;

(2) states or implies falsely that the individual receiving the

material has received special treatment or personal attention

from the offeror of the sweepstakes or any officer, employee, or

agent of the offeror; or

(3) states that the recipient of the material:

(A) is a winner, if the recipient is not a winner;

(B) may be a winner;

events occur;

(D) may be or will be among the group from which a winner will

be selected; or

(E) has in any way a better chance than another individual of

being chosen as a winner.

Added by Acts 2007, 80th Leg., R.S., Ch.

885, Sec. 2.01, eff. April 1, 2009.

Sec. 622.105. USING GAME PIECE TO CONVEY INFORMATION OR OFFER TO

ENTER. A person conducting a sweepstakes may not convey

information about the sweepstakes or an offer to enter the

sweepstakes by using a scratch-off device or any other game piece

that suggests an element of chance or luck.

Added by Acts 2007, 80th Leg., R.S., Ch.

885, Sec. 2.01, eff. April 1, 2009.

Sec. 622.106. PUBLISHING ADVERTISEMENTS OR RULES WITH

INCONSISTENT OR INCOMPLETE PRIZE DESCRIPTIONS. A person

conducting a sweepstakes may not publish or cause to be

published:

(1) different advertisements for the same sweepstakes that

contain inconsistent descriptions of the grand prize to be

awarded through the sweepstakes; or

(2) official rules of the sweepstakes that do not uniquely

identify the prizes to be awarded and the date the prizes will be

awarded.

Added by Acts 2007, 80th Leg., R.S., Ch.

885, Sec. 2.01, eff. April 1, 2009.

Sec. 622.107. ENGAGING IN CONDUCT THAT FALSELY INDICATES AN

INDIVIDUAL HAS WON. A person conducting a sweepstakes may not:

(1) ask an individual to provide any information or take any

action consistent with the individual winning a sweepstakes

prize, unless the individual has won a sweepstakes prize; or

(2) provide an individual who has not yet won a sweepstakes

prize with a document or other item that simulates an event,

circumstance, or condition connected with being a sweepstakes

winner.

Added by Acts 2007, 80th Leg., R.S., Ch.

885, Sec. 2.01, eff. April 1, 2009.

Sec. 622.108. AWARDING MULTIPLE PRIZES. A person conducting a

sweepstakes may not award multiple prizes in the sweepstakes

unless all prizes are awarded on the same date and through the

same selection process.

Added by Acts 2007, 80th Leg., R.S., Ch.

885, Sec. 2.01, eff. April 1, 2009.

Sec. 622.109. MAILING CERTAIN OFFERS DURING PERIOD FOLLOWING

SWEEPSTAKES. A person conducting a sweepstakes may not, during

the 30-day period immediately following the last date on which

the person conducted the sweepstakes through the mail, offer

through the mail:

(1) an opportunity to enter a sweepstakes; or

(2) a nonsweepstakes prize, gift, premium, giveaway, or skill

contest.

Added by Acts 2007, 80th Leg., R.S., Ch.

885, Sec. 2.01, eff. April 1, 2009.

Sec. 622.110. PROVIDING NAMES OR ADDRESSES USED IN PROHIBITED

SWEEPSTAKES. A person may not provide names or addresses of

residents of this state that are used in conducting a sweepstakes

that the person knows violates this chapter.

Added by Acts 2007, 80th Leg., R.S., Ch.

885, Sec. 2.01, eff. April 1, 2009.

SUBCHAPTER D. ACTS OR CONDUCT NOT PROHIBITED

Sec. 622.151. DESCRIPTION OF METHOD OF CHOOSING WINNER. This

chapter does not prohibit a sweepstakes sponsor from describing

in the official sweepstakes rules the method to be used in

choosing a winner.

Added by Acts 2007, 80th Leg., R.S., Ch.

885, Sec. 2.01, eff. April 1, 2009.

Sec. 622.152. NOTIFICATION OF AND AFFIDAVIT FROM WINNER. This

chapter does not prohibit a sweepstakes sponsor, after a winner

has been chosen, from:

(1) notifying an individual chosen as a winner; or

(2) obtaining from an individual chosen as a winner an affidavit

to verify that the individual:

(A) is eligible to win the prize; and

(B) has complied with the sweepstakes rules.

Added by Acts 2007, 80th Leg., R.S., Ch.

885, Sec. 2.01, eff. April 1, 2009.

SUBCHAPTER E. ENFORCEMENT

Sec. 622.201. ACTION BY ATTORNEY GENERAL; VENUE. The attorney

general may bring an action under this chapter by filing suit in

a district court in Travis County or in any county in which a

violation occurred.

Added by Acts 2007, 80th Leg., R.S., Ch.

885, Sec. 2.01, eff. April 1, 2009.

Sec. 622.202. CIVIL PENALTY. (a) The court shall award the

attorney general a civil penalty of not less than $5,000 or more

than $50,000 for each violation found.

(b) If the material accompanying or relating to a sweepstakes or

an offer to enter a sweepstakes contains multiple statements,

implications, representations, or offers that are prohibited by

this chapter, each statement, implication, representation, or

offer is a separate violation and results in a separate civil

penalty. Each individual who receives the material constitutes

an additional and separate group of violations of this chapter.

Added by Acts 2007, 80th Leg., R.S., Ch.

885, Sec. 2.01, eff. April 1, 2009.

Sec. 622.203. LIABILITY FOR PROVIDING NAMES OR ADDRESSES USED IN

PROHIBITED SWEEPSTAKES. (a) A person who violates Section

622.110 is liable for the cumulative civil penalties that result

from the person's conduct.

(b) Liability of a person under Subsection (a) does not reduce

the liability of the person who conducted the sweepstakes.

Added by Acts 2007, 80th Leg., R.S., Ch.

885, Sec. 2.01, eff. April 1, 2009.

Sec. 622.204. INJUNCTIVE AND OTHER RELIEF. The court may also

award injunctive relief or other equitable or ancillary relief

that is reasonably necessary to prevent violations of this

chapter.

Added by Acts 2007, 80th Leg., R.S., Ch.

885, Sec. 2.01, eff. April 1, 2009.

Sec. 622.205. NO PRIVATE RIGHT OF ACTION. This chapter does not

create a private right of action.

Added by Acts 2007, 80th Leg., R.S., Ch.

885, Sec. 2.01, eff. April 1, 2009.

Sec. 622.206. RECOVERY OF EXPENSES BY ATTORNEY GENERAL. If the

attorney general substantially prevails, the court shall award

the attorney general reasonable expenses incurred in recovering a

civil penalty under this subchapter, including court costs,

reasonable attorney's fees, reasonable investigative costs,

witness fees, and deposition expenses.

Added by Acts 2007, 80th Leg., R.S., Ch.

885, Sec. 2.01, eff. April 1, 2009.