TX Bus & Com Code § 621.003 (2021)
2021 Texas Statutes|Business and Commerce Code|Title 13 - Contests and Other Promotions|Chapter 621 - Contests and Gift Giveaways|Subchapter A. General Provisions|Section 621.003. Definitions

Sec. 621.003.  DEFINITIONS.  (a)  In this chapter:(1)  "Contest" means a promotional device in which:(A)  a person is offered, as an inducement to attend a sales presentation, a chance to win or receive a prize by complying with specified entry requirements;(B)  the winner or recipient of a prize is determined by random selection; and(C)  all offered prizes are awarded.(2)  "Contest period" means the duration of a contest from the beginning date to the ending date.(3)  "Drawing" means a contest in which the recipient of a prize is determined from all of the entries received.(4)  "Entry form" means a card, letter, entry blank, token, or similar device that identifies a contestant by:(A)  name;(B)  number, letter, or symbol; or(C)  both name and number, letter, or symbol.(5)  "Gift" means an item of value that is offered, transferred, or given to a person as an inducement to attend a sales presentation but that is not offered, transferred, or awarded through a contest.  The term does not include a manufacturer's rebate or discount available to the public.(6)  "Major prize" means a prize that has an actual unit cost to the offeror of at least $250.(7)  "Matched contest" means a contest in which:(A)  the winning numbers are preselected, printed on an entry form, and distributed to the public; and(B)  the numbers printed on the entry forms are subsequently matched with the list of winning numbers at a sales location to determine prize eligibility.(8)  "Minor prize" means a prize that:(A)  has an actual unit cost to the offeror of less than $250; and(B)  is transferred to a person who:(i)  attends a sales presentation; and(ii)  is not the winner of a major prize.(9)  "Odds of winning" means a ratio in which:(A)  the numerator equals the actual number of units of an identified prize to be given away during a contest period; and(B)  the denominator equals the number of entry forms distributed or reasonably anticipated to be distributed during the contest period.(10)  "Offeror" means a person who solicits another person to attend a sales presentation.(11)  "Person" includes an individual, a corporation, a firm, and an association.(12)  "Prize" means an item of value that is offered, awarded, or given to a person through a contest.  The term does not include a manufacturer's rebate or discount available to the public.(13)  "Sales presentation" means a transaction or occurrence in which a consumer is solicited to execute a contract that obligates the consumer to purchase goods or services as defined by Subchapter E, Chapter 17, including:(A)  a timeshare interest as defined by Section 221.002, Property Code; and(B)  a membership interest as defined by Section 222.003, Property Code.(14)  "Winning number" includes a letter or other identifying symbol.(b)  For purposes of Subsection (a)(1)(B), a determination made by random selection does not include the method used by an offeror to identify a person who will be notified of an offer to win a prize.|Added by Acts 2007, 80th Leg., R.S., Ch. 885 (H.B. 2278), Sec. 2.01, eff. April 1, 2009.|