Introduction to Sweepstakes and Contests Law. August 26, 2015 By Char Pagar, Partner, VLP Law Group LLP

Transcription

1 Introduction to Sweepstakes and Contests Law August 26, 2015 By Char Pagar, Partner, VLP Law Group LLP

2 Five Rules Comply with lottery laws Draft official rules properly Administer well Advertise truthfully Remember privacy rules

3 COMPLY WITH LOTTERY LAWS

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5 COMPLY WITH LOTTERY LAWS Prize Chance Consideration

6 COMPLY WITH LOTTERY LAWS Prize = anything of tangible value

7 COMPLY WITH LOTTERY LAWS Prize Chance = random selection of winner or any material element of chance

8 COMPLY WITH LOTTERY LAWS Prize Chance Consideration: purchase, payment or substantial effort

9 COMPLY WITH LOTTERY LAWS Prize Chance Consideration Remove ONE of the above

10 COMPLY WITH LOTTERY LAWS Prize Chance Remove Consideration = SWEEPSTAKES

11 COMPLY WITH LOTTERY LAWS: SWEEPSTAKES

12 COMPLY WITH LOTTERY LAWS: SWEEPSTAKES Remove consideration with an alternate method of entry (AMOE) NO PURCHASE NECESSARY Equal dignity required Clear & conspicuous disclosure required

13 COMPLY WITH LOTTERY LAWS Prize Remove Chance Consideration = SKILL CONTEST

14 COMPLY WITH LOTTERY LAWS: SKILL CONTEST

15 COMPLY WITH LOTTERY LAWS: SKILL CONTESTS Require bona fide skill Judge entries on objective criteria Skill must determine and control the final result

16 DRAFT OFFICIAL RULES PROPERLY Contract between sponsor and consumer Critical to get it right

17 DRAFT OFFICIAL RULES PROPERLY DON T copy rules DON T use ambiguous language DON T change the rules midstream DO include a Kraft clause

18 ADMINISTER WELL Registration and Bonding Florida Register chance promotions with prize value in excess of $5000 at least 7 days before start

19 ADMINISTER WELL Registration and Bonding New York Register chance promotions with prizes in excess of $5000 at least 30 days prior to start

20 ADMINISTER WELL Registration and Bonding Rhode Island Register a chance promotion run by or through retail outlets with prize value in excess of $500

21 ADMINISTER WELL Winner Selection & Clearance: Sweepstakes Random selection of winner or distribution of game pieces Purchase and non-purchase entries must be fully integrated

22 ADMINISTER WELL Winner Selection & Clearance: Contests Select winner on the basis of objective criteria set out in rules Consider using objective independent party or outside judges Document selection process

23 ADMINISTER WELL Winner Selection & Clearance Get a signed affidavit of eligibility/release of liability from all major prize winners Issue IRS Form 1099 to winners of prizes in excess of $600

24 ADMINISTER WELL Winner Selection & Clearance Consider a background check if planning major publicity for winner

25 ADVERTISE TRUTHFULLY Describe promotion accurately Avoid misleading prize descriptions Include proper disclaimers Recognize your audience

26 ADVERTISE TRUTHFULLY Television Disclosures NO PURCHASE NECESSARY Termination date Void where prohibited Major eligibility requirements Subject to official rules, available at....

27 ADVERTISE TRUTHFULLY Print Disclosure Complete rules or abbreviated rules Direct mail: full rules

28 REMEMBER PRIVACY RULES Include link to privacy policy on entry form and in official rules Disclose in rules if info collected may be used for other purposes

29 REMEMBER PRIVACY RULES COPPA COPPA COPPA! Info collected online from under-13 s Make entrants calculate date of birth or age ASK How old are you? NOT Are you under 13? Refuse entry to persons underage Drop session cookies to block reentry

30 QUESTIONS? Char Pagar