2023 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.