Texas § BC.621.003 - DEFINITIONS

§ BC.621.003. DEFINITIONS

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.