Compliance
What Texas Law Says About Prize and Gift Mailers
By Chad Rowold · [Date] · 6 min read
Texas regulates gift and prize notices under the Contest and Gift Giveaway Act, and both the mailer's sender and the business it promotes can be on the hook. Here's what a GM should know and what to ask any event company before the mail drops.
Key takeaways
- Gift and prize notices must clearly disclose any required sales presentation, its rough length, and what's being sold.
- False "you've won" language and fake official-looking documents are prohibited.
- Promised gifts have to be available as described.
- Federal enforcement is active. The Fifth Circuit upheld an FTC ruling against an auto event marketer in July 2025.
Why the dealer should care
It's easy to assume compliance is the mail company's problem. Texas law defines who is responsible broadly enough that the dealership promoted in the notice can share the exposure. A bad mailer puts the store's name at risk, not just the vendor's.
The disclosure rule
If a guest has to attend a sales presentation to receive the gift, the notice has to say so clearly. It also has to give an approximate length and say what's being sold. That's the core of the Act, and it's the first thing to check on any piece.
What's off-limits
- Telling someone they've won something they haven't.
- Pieces designed to look like government or court documents.
- Check look-alikes that aren't plainly marked as non-negotiable specimens.
- Requiring a payment to receive the gift.
Questions to ask any event vendor
- Can my legal team review the piece before it prints?
- Where are the required disclosures on this piece?
- What does every guest receive, and is it on hand for the whole event?
- How long do you keep event records?
Not legal advice
This is a plain-language overview. For a specific piece, get your own counsel's sign-off. [Have counsel review this article before publishing.]
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Book Event Plan Call →Sources
- 1. Texas Business & Commerce Code, Chapter 621. [link]
- 2. Traffic Jam Events, LLC v. FTC (5th Cir., July 10, 2025). [link]