"We are not misusing member data or keeping the award, so I think it is ok."

Suggested reading material before making such a statement again...

Tennessee Code : TITLE 47 COMMERCIAL INSTRUMENTS AND TRANSACTIONS : CHAPTER 18 CONSUMER PROTECTION : PART 1 CONSUMER PROTECTION ACT OF 1977 : 47-18-120. Definitions - Prizes offered as inducements - Unfair or deceptive practices.

Tennessee Code : TITLE 47 COMMERCIAL INSTRUMENTS AND TRANSACTIONS : CHAPTER 18 CONSUMER PROTECTION : PART 1 CONSUMER PROTECTION ACT OF 1977 : 47-18-124. Prizes - Unfair or deceptive practices.

"This is an award event that is selective to only those AOMs, this is not considered a contest but might fall within the state law of giving an award."

Strange as it may seem, the law governing awards is the exact same law that governs contests(Prize, Gift, and Award Law)...

1. "Prize" means a gift, award, incentive promotion, or other item or service of value. "Prize" includes, but is not limited to, anything of value that is offered or awarded to a participant in a real or purported contest, competition, sweepstakes, puzzle, drawing, incentive offer, premium promotion or similar promotional offer by whatever name the company uses, scheme, plan, or other selection process;

(3) The offeror is in violation of this part if at any time the offeror:
(A) Misrepresents in any manner the rules, terms, restrictions, monetary obligations or conditions of participation in the promotional plan or offer;