Sweepstakes/Promotions

We’re all pretty used to seeing sweepstakes that require entrants to “like” an advertiser’s or app’s Facebook® page in order to enter—they’re probably the most common type of promotion on Facebook.  Many marketers require consumers to “like” an application’s Page as a condition of entry into a sweepstakes or contest, in order to receive coupons or other rewards, or in order to watch a video or some other type of content.  Advertisers like to do this because in exchange for offering consumers benefits for “liking” their applications’ Pages, the advertisers obtain a guaranteed base of Facebook fans and extend their brand’s reach on Facebook.

But, in a few months, as a result of recent changes to Facebook’s Platform Policy, these examples of “like-gating” will no longer be kosher on the Facebook platform.  Facebook’s revised Platform Policy, updated August 7, 2014, states that developers of Facebook applications may “[o]nly incentivize a person to log into your app, like your app’s Page, enter a promotion on your app’s Page, or check-in at a place.”  The revised policy goes on to state that “Effective November 5th, 2014, you may no longer incentivize people to like your app’s Page.”

Facebook provides these examples of what is no longer allowed:

FacebookContinue Reading Facebook Changes the Rules Again: The Sally Field Principle of “Likes” on Social Media

ColeHaanOn March 20, 2014, the FTC issued a closing letter to Cole Haan that will affect all kinds of advertisers (and advertisements) on social media.  In particular, it will impact the way that brands interact with users on Pinterest and tell their users to use hashtags in contests and other types of promotions.  So advertisers, #listenup!

The FTC took issue with the shoemaker’s “Wandering Sole” contest on Pinterest, which called for people to create Pinterest boards with images of five Cole Haan shoes, along with pictures of the contestants’ “favorite places to wander.”  Whoever posted the most creative entry would win a $1,000 shopping spree.  Cole Haan told users to include the hashtag “#WanderingSole” with their photos, but—importantly—it didn’t tell participants they also needed to make it clear that they posted the pins in order to enter a contest.

The FTC was concerned because this material connection (the link between the pin and the contest entry) was not disclosed in entrants’ posts.  The letter states that “entry into a contest to receive a significant prize in exchange for endorsing a product through social media constitutes a material connection that would not reasonably be expected by viewers of the endorsement.”   The FTC observed that the participants’ pins featuring Cole Haan products were endorsements of the company’s products, and the #WanderingSole hashtag ineffectively communicated the financial incentive—a material connection—between Cole Haan and the entrant.

Continue Reading FTC Gives Cole Haan’s Contest the #Boot

As we shiver and bundle up against the Polar Vortex here in DC, we are fast approaching the biggest event of the advertising year—the Super Bowl®—held for the first time in the wintry conditions of New Jersey).  With the Olympic Games® in Sochi, Russia after that, and March Madness® following soon thereafter, February and March will be an orgy of watching televised sports for most of us—except for those poor souls who are responding to cease and desist letters for infringing uses of trademarks and/or implying a false affiliation with these winter events.

While the advertising opportunities appear to be rich with both the Super Bowl and the Olympics, advertisers and marketers must be extra cautious when launching ad campaigns that could imply any sort of connection or association with either of these two events or that use the name of the two events for commercial purposes.  The Super Bowl and March Madness are both trademarked terms, and the NFL and the NCAA, respectively, vigorously prosecute unauthorized usage of those marks, sending out dozens of cease and desist letters each year and even bringing lawsuits in some cases.  Moreover, the U.S. Olympic committee enforces U.S laws that expressly protect the use of the word “Olympics” and the interlocking rings, and can be even more aggressive than the NFL and NCAA about stopping “ambush marketing” and unauthorized association with its marks.

So, while many think of the Super Bowl as the ultimate platform for advertisers and marketers to feature their products and services
Continue Reading Advertisers, Don’t Get Caught in the Cold with the SuperBowl, the Olympics and March Madness: Pay Attention to Trademarks!

On December 10th, with consumers decking the halls and swarming retail stores, the Commissioner of the Connecticut Department of Revenue Services, Kevin B. Sullivan, gave a warning to holiday shoppers that gift cards are not subject to sales tax in Connecticut. According to the Commissioner, shoppers should return to the store with their receipts and

BoyScout PhotoThe Boy Scouts of America failed to get their compliance badge from CARU earlier this month after the BSA ran a sweepstakes ad that lacked the appropriate odds of winning disclosures.  The BSA’s Boy’s Life Magazine failed to include the “Many Will Enter, Five Will Win” odds statement in the magazine’s ad announcing the

SweepstakesWe all know that sweepstakes and contests can be vulnerable to enforcement and litigation, but did you know just how many ways your company can hold a losing ticket when running a prize promotion?  Let’s review some of sweepstakes and contests that got caught in red over the past few months to see the variety of ways a prize promotion can go bust.
Continue Reading The Sweepstakes Games You Can’t Afford to Lose

Like many social media platforms, Facebook has rules in place that specifically govern the administration and advertisement of prize promotions on the site.  Marketers who wish to run sweepstakes and contests must comply with these rules, or risk having their carefully-designed sweepstakes or contest shut down mid-promotion, cutting off access to a key segment of their customer base (and possibly leaving them open to legal complications).
Continue Reading Facebook Changes The Rules of the Game – Again

Last week, a radio station in Boston canceled its “Taylor Swift’s Biggest Fan” contest after it came out that a 39-year-old man named Charles was set to win the grand title.  The radio station issued a statement clarifying the reasoning for its decision:

“Disappointingly, we have determined that the integrity of the ‘Taylor Swift’s Biggest Fan’ contest has been compromised. In accordance with our contest rules, effective immediately, the contest has been terminated. We apologize to all of our loyal listeners who have participated.”

Was the radio station allowed to do this?  Did the Official Rules protect the contest’s sponsor from having to award the prize?  The short answer is yes, and that’s precisely why having a good set of Official Rules in place is critical before a contest launches.
Continue Reading “We Are Never, Ever, Ever Getting Back Together” Without Contest Rules in Place

Vermont has the reputation of being a state of rugged individualists, radical hippies and stubborn “woodchucks,” who eschew the majority, stick with their principles and buck convention.  This is reflected in the Green Mountain State’s strict consumer protection laws and its regulators’ enforcement of them.  The Vermont legislature recently stepped back from its minority position

Last week, Florida Governor Rick Scott signed into law FL HB 155, a bill that makes significant changes to the Florida Game Promotion Statute with regard to nonprofits and could have a significant effect on certain charitable promotions.  The bill, entitled “Prohibition of Electronic Gaming Devices,” was intended to clarify Florida’s prohibition on electronic