Texas Business and Commerce Code 621.054 – Limitations On Conditioning Gift On Payment of Consideration, Charge, or Expense
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(a) In this section, “redemption or shipping fee” means any kind of consideration paid to the offeror. The term does not include a refundable deposit.
(b) Except as provided by Subsection (c), an offeror may notify a person that the person will receive a gift, the receipt of which is conditioned on the person paying consideration of any kind, paying a charge, or incurring an expense, only if the offeror fully, clearly, and conspicuously discloses the consideration, charge, or expense.
Terms Used In Texas Business and Commerce Code 621.054
- Gift: A voluntary transfer or conveyance of property without consideration, or for less than full and adequate consideration based on fair market value.
- Obligation: An order placed, contract awarded, service received, or similar transaction during a given period that will require payments during the same or a future period.
- Person: includes corporation, organization, government or governmental subdivision or agency, business trust, estate, trust, partnership, association, and any other legal entity. See Texas Government Code 311.005
(c) An offeror may not charge a redemption or shipping fee for a gift regardless of whether full disclosure of the fee is made.
(d) A gift is not prohibited in a legitimate trade promotion if the advertising regarding the promotion fully discloses any contractual obligation to be assumed to qualify for the gift.