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Archive for April 1st, 2009
Conflicts of Interes?
Posted by Anna from Cathedral City, CA, US on April 1, 2009
A local car dealership in California is contemplating a giveaway promotion that is aimed at drawing customers into the business. The dealership is reaching out to area businesses for product giveaways. I see that most contest rules prohibit participation by the employees of the businesses conducting the contest and the employees of contest sponsors but I don’t see that their participation is prohibited under the California consumer protection laws. Are there other applicable laws that exclude certain individuals from participatign or is that a common business practice which is intended to avoid even the appearance of a conflict of interest?
Thanks!
The primary reason that employees are excluded from eligibility is what you suggested-- to avoid the appearance of impropriety. If the prize providers are not involved in the random selection process, there is no need to exclude their employees from eligibility.