On May 11, 2023, @BabyTesla3 sent out a Tweet:
NEW: Tesla has revamped the Referral program and introduced a new loyalty program! Here’s what you need to know • S/X: 3,500 credits (referrer) • 3/Y: 2,000 credits (referrer) • S/X: 6,000 credits (loyalty) • 3/Y: 3,000 credits (loyalty) • New Cybertruck raffle for 500!
The ad contained no reference or link to any Terms and Conditions or Official Rules, nor I find any rules for the “raffle” online.
The ad has already sparked a number of news articles recognizing the “catch” in this promotion. (https://www.autoblog.com/2023/05/13/tesla-cybertruck-referral-program/ and https://www.foxnews.com/auto/tesla-giving-away-cybertruck-catch)
On its face, this promotion appears to require a person to: (i) own a Tesla in order to sign-up for participation in Tesla’s “Loot Box” referral program; (ii) earn credits by purchasing a Tesla or Tesla products; and (iii) redeem 500 of these credits to enter the “raffle”. At least that’s what I can figure out from Tesla’s “Loot Box” Terms and Conditions:
Loot Box is our referral program that helps Tesla owners share their passion for our products and our mission — to accelerate the world’s transition to sustainable energy. As an owner, every time you bring a new friend or family member into the Tesla community, you and your friend both earn credits — you earn Referral Credits and your friend earns Buyer Credits. You also earn Loyalty Credits when you purchase additional qualifying Tesla products, as a thank you for being a loyal Tesla owner. (https://www.tesla.com/support/loot-box#terms).
As we all know from Sweepstakes 101, a company has to provide a free method of entry (the “AMOE”) in a sweepstakes. Maybe we’ll learn more from Tesla about this “raffle” in days to come, but for now, we need to file this under the “Things that make you go hmmm” category.
Since we’re together, here’s some handy tips for loyalty program sweepstakes:
- You can require an entrant to be a member of your loyalty program in order to enter a sweepstakes provided:
- You require registration prior to the start date of the promotion; or
- There is no purchase of any kind required to become a loyalty program member.
- You can allow loyalty program members to use their loyalty points for sweepstakes entries provided:
- Loyalty points can be obtained without making a purchase; or
- There is alternative free method of entry into the sweepstakes.
And, bonus tip: whatever you do, don’t call your chance promotion a “raffle”. While pikers love to toss around various games of chance terms, some – like “raffle” – give valid reason to question the promotion. The term “raffle” is typically limited to chance promotions sponsored by charities which require a donation. For example, the applicable Connecticut statute defines a “raffle” as “an arrangement for raising money by the sale of tickets, certain among which, as determined by chance after the sale, entitle the holders to prizes.”
And finally, a special shout-out to a loyal reader who let me know of the recent Tesla raffle! Keep ‘em coming.
