Opinion No. (2002)

BILL LOCKYER Attorney General GREGORY L. GONOT Deputy Attorney General THE HONORABLE VIRGINIA STROM-MARTIN, MEMBER OF THE STATE ASSEMBLY, has requested an opinion on the following question: May a business owner conduct a promotion in which (1) each customer is given a card, (2) when a product is purchased at the regular price, the card is stamped, (3) once the card is stamped four times, the customer receives a free product of the type previously purchased and (4) the card is entered in a drawing for a free vacation? CONCLUSION A business owner may not conduct a promotion in which (1) each customer is given a card, (2) when a product is purchased at the regular price, the card is stamped, (3) once the card is stamped four times, the customer receives a free product of the type previously purchased and (4) the card is entered in a drawing for a free vacation. ANALYSIS The question presented for analysis concerns a proposed promotional scheme designed to encourage patronage at a retail store by providing an opportunity for customers to win a free vacation. Under the proposal, a customer would make four purchases of a product at the regular price and as a "gift" for making the…