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Legally Speaking
1 Oct, 2008 By: Kenneth D. Morris Landscape ManagementQ: I want to run a sweepstakes where potential customers can enter to win a free year's worth of lawn care. What should I know before I begin?
A: Many state and federal laws and regulations have been put in place to protect consumers. Check your state Attorney General's Web site to find out about the laws typically enforced. Laws and regulations also exist at the federal level. If you retain a telemarketer, know the Federal Trade Commission's Telemarketing Sales Rule seeks to protect customers from fraudulent telemarketing schemes. Every telemarketing call involving prize promotion requires telemarketers to tell the customer (i) the odds of winning, (ii) that he does not have to pay a fee or buy something to win or participate, (iii) how he can participate without buying anything, and (iv) the conditions the consumer will have to meet to receive the prize. If the odds cannot be determined in advance, you need to make sure the promotion states the factors, which will be used to calculate the odds. Guidelines to construct your sweepstakes: (1) legitimate sweepstakes do not require the consumer to pay or buy something, (2) the sponsor needs to be identified prominently and an address or toll-free number provided if it is a telemarketing sweepstakes so consumers can request removal from your mailing list, (3) bona fide offers clearly disclose the terms and conditions of the promotion, including entry rules, odds of winning, etc., (4) how to construct the sweepstakes so as not to be deceptive or fraudulent, and (5) to avoid high-pressure sales pitches or unscrupulous tactics. Seek an attorney's review of your sweepstakes before it is published to ensure it complies with all applicable state and federal rules and regulations.
Kenneth D. Morris, a Philadelphia-based attorney with more than 30 years corporate and law firm experience, offers information on industry legal issues in each issue of LM. Contact him via www.kenmorrislaw.com.
Note: The above should not be interpreted as offering legal advice in any jurisdiction where such practice is not authorized. Engage competent counsel familiar with your jurisdiction when legal issues arise.
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