Tex.
Bus. & Com. Code Section 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 (Deceptive Trade Practices), including:(A)
a timeshare interest as defined by Section 221.002 (Definitions), Property Code; and(B)
a membership interest as defined by Section 222.003 (Definitions), 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.
Source:
Section 621.003 — Definitions, https://statutes.capitol.texas.gov/Docs/BC/htm/BC.621.htm#621.003 (accessed Apr. 13, 2024).
