Promotional give-aways foster customer loyalty. Some businesses prefer social media promotions; other companies stick to traditional mailers. Whatever the case, they all must adhere to marketing regulations.
Lottery Promotions Law
Lotteries are common promotional tools, and the rules are straightforward.
By definition, a lotteries feature a consideration (payment), chance, and reward. For a lottery to pass legal muster, all three must be present.
- Consideration (Payment) — The player must make a material contribution to participate.
- Chance — Player must understand that they will either win and lose their material contribution (e.g., money).
- Reward — The lottery winner must receive a material reward (e.g., money, car, vacation, etc.).
6 More Facts About Marketing Promotions Law
- Rhode Island, Florida, and New York have notoriously strict promotion laws.
- If you plan to run a promotion targeting kids, you must adhere to the Children’s Online Privacy and Protection Act.
- If you plan to market or conduct any part of the promotion through e-mail or snail mail, you must adhere to the Deceptive Mail Prevention and Enforcement Act, in addition to the CAN-SPAM and FTC Telemarketing Rule.
- Alcohol, tobacco and appliances products are beholden to strict federal disclosure laws.
- Any promotion or contest conduct on social media must include proper disclosures.
- All Twitter promotions should include a clear indicator that the Tweet is either sponsored or part of a promotion (e.g., #sponsored, #contest, #promotion).
For more information about promotions law, contact an experienced marketing attorney.