7 Promotions Law Facts

promotions law attorneyPromotions are fantastic way to build customer loyalty. Some businesses prefer social media promotions; other companies stick to traditional mailers. Whatever the case, all marketers should familiarize themselves with promotions law.

Lottery Promotions Law

One of the most common marketing promotion tools is a lottery. Federal rules on the topic are straightforward.

By definition, a lottery must consist of a consideration (payment), a chance and a reward. All three must be present in order for a lottery to be legal.

  1. Consideration (Payment) — The player must make a material contribution to participate.
  2. Chance — The player must understand that he or she may not win and lose their material contribution (e.g., money).
  3. Reward — The winner of the lottery must be awarded a material reward (e.g., money, car, vacation, etc.).

6 More Facts About Marketing Promotions Law

  1. Rhode Island, Florida, and New York have notoriously strict promotion laws.
  2. If you plan to run a promotion targeting kids, you must adhere to the Children’s Online Privacy and Protection Act.
  3. 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.
  4. Alcohol, tobacco and appliances products are beholden to strict federal disclosure laws.
  5. Any promotion or contest conduct on social media must include proper disclosures.
  6. 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.

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