EMEIRAL OF TEXAS

Hon. Gean B. Turner Opinion No. 0-28L3 District

Attorney Re: Whether or not advertising scheme Johnson Count; ("Appreciation Day") of merchants of Cleburne,

Texas Cleburne constitutes

a latter. Dear Sir: This will acknowledge receipt of your letter of October22, 19l~0, requesting

the opinionof this department as to whether or not the following

scheme constitutes

a lottery in violation of Article 6% of the Penal Code:

YThe merchants

of Cleburne

want official

rulingregardinga trades day plan called 'Appreciation Day'. The plan operates

by merchants

who pay to a caumon fund called Appreciation

Day. These merchants give couponscalled 'Treasure

Chest' coupons,

which coupons

contain

markings from 5 to 50%. -After perchases

are made in these participating~ firms~the

customer

is given a coupon

which is punched from any denomination from the 5 to $I$. The custom to be generally

followed

that a customer

who purchases

from 254 to 99g in a participating store is given a 5% punched coupon;a purchaseof $1.00 to $1.99, a 10% COUpOn; a purchase of $2.00 to $2.99, a 20% coupon;a $3.00 to $3.99, a 30% coupon;

a $4.00 to 3bh.99,

a LO% coupon,and a purchase of.$S.OO

to $10.00,a 50% coupon. "The customer

then signshis or her name and address onthe back of the coupon,drops it in a box. On 'Drawing' day the ticketsor couponsare placed in a generalcontainer from which is drawn a winning ticket. The persons whose name is drawn is awardedthe 5, 10, 20,,30,40 and sC$ of the trades day fund money depending on the percentage

of the couponwhich is drawn. "A wife may answer for her husbandand a husband may answer for his wife. "If neither of thesepeople are present, another ticket or coupon is drawn until someone is actually awardedscme part of the 'Appreciation Day Money'. "Thoughit is the general practice

that tickets or coupons be given after each purchase or payment on account, aHon. Gesn B. Turner, page 2 (O-28W)

person may requesta 'free' coupon of the merchant if he does not have a coupon to participate in the drawing. "The purposeof the plan is to create interest in the home community

by the merchants

givingaway of such prizes. Customers

who are loyal ta Cleburne are given these couponsafter they have traded with local participatingmerchants. No consideration of value is placed on these tickets. “A folder explaining the plan, together

with a sample of ticket, is included herein for examination. The merchants

would appreciate

an immediate

ruling on the legalityof this Appreciation Day plan." This department

has on numerous occasions passed on the question of whether or not various mercantile

advertising

schemesconstitute

a lottery, and without exception has so brandedthem when the elementsof chance, prize and consideration have been found to be present. We are enclosing

copies of three opinions previously

rendered

by this department(0-117h, O-2286, o-2563) which we believeto be directly in point. For the reasonsset forth in Opinions Nos. O-1174,

O-2286 and O2563, and under the authorities there cited, it is our opinion and you are respectfully

advisedthat the mercantile advertising

scheme described

in your letter, "Appreciation Day", constitutes

a lotteryas is condemned by Article 69~ of the Penal Code of Texas. Very truly yours, ATTORNEYGENERALOF TEXAS By /s/ Jas. D. Smullen Jas. D. Smullen,

Assistant APPROVEDCCT 28, 191rO /s/ GeraldC. Mann ATTORNEYGENERALOF TEXAS APPROVED:

OPINION

COMMITTEE BY: BWB, CHAIRMAN JDS:db:wb Enclosures