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April 2006

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Don Jagoda Associates

Sweepstakes, Contests or instant winner games

sponsored by Don Jagoda Associates


Archive for April, 2006

VT Omit Postage
Posted by Kathy on April 21, 2006

We recently had an interesting discussion with an attorney about VT residence needing to add postage when requesting a winners list. The statement sent to our company from the clients attnorney is as follows: Our regulatory counsel has confirmed with the VT Attorney General that VT Administrative Code Section 109.01(b), relating to Consumer Fraud, Contests and Prizes, addresses the return postage issue: “It shall constitute an unfair and deceptive trade act and practice in commerce under 9 V.S.A. section 2453(a) for any person to solicit any person to engage in any kind of game of skill, contest sweepstakes, give-away or other promotion which: (a) is deceptive or misleading as to chances of winning, the number of winners, the value of the prizes, or the availability of the prize; (b) requires any kind of entry fee, service charge, purchase or similar consideration in order to enter or to continue to remain eligible; or, (c) uses publications, literature, written or verbal promotion that is false, deceptive or misleading.” Although it’s not clear from the Code, the AG has interpreted (b) to cover postage relating to requests for winners lists, and has issued several opinion letters explicitly stating as much.

What have you advised clients regarding this subject? We had been advised by council that omitting postage was only regarding game piece request to participate.

I checked with our legal on this one to see what our interpretation is.
We take the position that Sponsor only has to pay for return postage in connection with game piece requests. Once the winners' list is available the game is over and we do not see any need to pay for the return postage in connection with winners' list requests.


Contest to Customers Only
Posted by karen on April 21, 2006

It is my understanding that under contest rules, you may specify only customers are eligible due to the skill based approach. Is this correct or do you need to open to non-customers?

I’m the CMO at Mainstreet Bank and working on implementing a backyard remodel contest that will require a short essay and photos of their current backyard. I’m opening to all customers that currently have a relationship with us. However, if a non-customer opens a checking account, they could also submit the contest entry. Any help would be appreciated. Thanks.

Generally speaking, as opposed to a random draw sweepstakes where an alternate, non-purchase method of entry is required, a skill contest may require some form of consideration (opening a checking account, for example). However, there are a handful of states that do not allow consideration even in the context of a skill contest. Therefore, we would have to know which states the promotion will be conducted in before any definitive advice can be given. It's also important to note that in order to truly be considered a skill contest, the rules must clearly spell out the judging criteria, and each entry must be judged on that criteria by a qualified individual. So be sure to use measurable , judgeable criteria and communicate it clearly in the rules. Also be sure the judging is done in a professinal manner.
Contests can be tricky, so we would suggest you contact a promotion agency that has in-house counsel, such as ours, to help walk you through the issues.


Industry Benchmarks
Posted by Renee on April 19, 2006

I have been searching for sweepstakes industry benchmarks specifically relating to driving in-store/retail traffic and have had absolutely no luck.

Do you have any resources or benchmark guides that might be helpful?

There are so many variables to take into account when comparing different sweepstakes that valid industry benchmarks remain elususive.
I've yet to come accross any reliable predictors and would caution you not to put too much stock in any that you use. The important thing to keep in mind when planning a sweepstakes is that they are objectives driven promotions and it's important to be sure to choose the sweepstakes tactic that matches your objectives.


rules question
Posted by Robin on April 12, 2006

When reading the official rules of some sweepstakes, there often is a mail-in option available. Many times a “3 x 5 postcard” is mentioned. However, the U.S. Postal Service will not accept a post card smaller than 3 1/2 x 5. This is obviously a case of badly written rules. How should a prospective entrant handle this dilemma?

Sounds like someone may have gotten a bit confused while "picking up" rules from a few different sweepstakes. I suspect that they meant to say submit your information on a 3"x5"card (which then would be placed in an envelope and mailed), or sumit your information on a Post card (which would then be mailed without an being placed into an envelope). If time allows,you can contact the judging agency and ask them for guidance. If time is tight, I doubt that any of the legitimate judging agencies would disqualify you for mailing the 3"x5" card in an envelope, as it was their mistake in the first place, and the mail-in option is typically a legal requirement.


Global Sweepstakes
Posted by Bruce on April 5, 2006

Please provide insight into challenges faced when constructing a global sweesptakes. Where can I find more information about a sweepstakes of this size?

There are a number challenges when running a global sweepstakes. The first one that comes to mind is making sure your promotion is legal in each country that you’re running in.
Many countries have unique sweepstakes laws and it is highly recommended that local counsel in each country be consulted prior to conducting a global promotion. For example, Canada requires that a skill testing question be administered in order to award a prize. In France, even a postage stamp is considered consideration. In many countries the non-purchase method has to be used as often or more than the purchase entry of method to be deemed legal. Many countries require registration with various departments and ministries. Some require that a judging be held in country before a notary. Many Muslim countries don't allow chance promotions at all. Be sure to allow ample time to do the legal work.
You also have to be careful that your promotion doesn’t offend the sensibilities of the local population. What’s considered normal and acceptable in one society may be anathema in another.
Also be sure your prizes are desireable, suitable and fulfillable in each country. Be aware of product electrical requirements and warranty exclusions.
Offline promotions have the additional logistical cosiderations of distribution and collection of consumer entries.
An experienced sweeepstakes agency, such as Don Jagoda Associates, working together with your ad agency can help you overcome these challenges and achieve success in running a global sweepstakes…but don’t wait… start planning early!!


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