![]() ![]() ![]() Sweepstakes sponsors may offer entry into their promotions through monetary payment or the purchase of a product or service, provided that they also offer a free, alternative method of entry (often referred to as an “AMOE”). If applicable state sweepstakes laws are not followed closely, sweepstakes operators face the prospect of fines, reputational harm and, potentially, criminal sanctions. ![]() Sweepstakes promotions are heavily regulated in order to prevent various types of consumer fraud. And if the opportunity to win a prize is removed, well, then nobody will enter. If chance is removed, the lottery becomes a legal contest. If the requirement to pay to enter is removed, the lottery becomes a legal sweepstakes. Private entities (unlike the state) cannot offer lotteries. What are the basics of sweepstakes law? Defining a SweepstakesĪ lottery exists when people pay for the chance to win a prize. Before doing so, however, it is wise to speak with a promotions attorney who is familiar with the nuances of sweepstakes law. Any business owner who has watched episode 1 of the series may be prompted to introduce a sweepstakes to generate excitement among her/his customers. Despite the scam, the McDonald’s Monopoly sweepstakes was an otherwise successful partnership between two iconic brands (the fast-food chain and the board game), a promotion that was often used by McDonald’s over the years to increase foot traffic when sales were low. HBO’s new docuseries, McMillion$, is the fascinating story of how the sponsors of the McDonald’s Monopoly sweepstakes were scammed out of $24 million dollars in the 1990s. If you want to enter the sweepstakes business, familiarize yourself with sweepstakes law and consult legal counsel to ensure compliance. ![]()
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |