You Might Be a Winner
        A blog from the attorneys of Verrill

        Cause Marketing Lessons from the Wounded Warrior Project Scandal

        by Robert Laplaca on March 15, 2016

        Your company just made a major announcement that it is partnering with a charity that you now find is involved in a scandal. What can you do?

        The recent ousting of The Wounded Warriors Project CEO and COO amid allegations of lavish spending on travel, conferences and public relations requires a company to examine their cause marketing campaigns. While there is no need to throw the baby out with the bath water – recent studies still confirm that consumers, and in particular Millennials, strongly support buying from companies associated with a cause* — picking the right charity is critical.

        *For example, according to the 2015 Cone Communications Millennial CSR Study, “More than nine-in-10 Millennials would switch brands to one associated with a cause (91% vs. 85% U.S. average).”

        Practice tips:

        1. Investigate the charity before you partner. Websites like 1. www.charitynavigator.org, 1. www.charitywatch.org and 1. www.guidestar.org provide comprehensive research and financial information on charities.
        2. Put an “out” in your contract. Most commercial co-venture laws require a contract between the charity and the company. At the time of contracting, a company may want to consider a morals (ethics) clause, such as:“If Charity is accused of any act involving moral or ethical issues under any law, any act of moral turpitude, or any act which casts unfavorable light upon Company, Company shall have the right to terminate the contract, discontinue all advertising for the Program and/or cancel the Program, in its sole discretion.”
        3. Stop the promotion (if you can): The commercial co-venture laws are generally silent about whether a company has the right to terminate a promotion. If you filed a contract and filed registration forms, you are committing to conducting the promotion through the end date. If the charity’s problems are egregious enough that you must stop the promotion, you can consider informing the registration states that, pursuant to the terms of the contract (if applicable), your company is terminating the promotion and will stop all advertising.
        4. Stop all further advertising for the promotion. Most commercial co-venture laws (and advertising laws in general) prohibit deceptive advertising. Commercial co-venture laws require that all advertising include the end date of the promotion. Therefore, your company has to continue to make donations for all purchases through that advertised end-date. Pulling print-ads and labeled products may be difficult. But, a company may at least reduce any negative association with the charity by halting an additional advertising of the campaign.
        5. Make a press release?: A company may want to consider getting out in front of the scandal, but announcing that while it continues to have a commercial co-venture program, this program began without knowledge of, or before any public disclosures of, the scandal.
        6. Continue compliance with the commercial co-venture laws. Even though there has been a scandal, a company continues to have statutory obligations, including providing committed donations and accountings to the charity, and maintaining (and where required) filing financial information with states.

        In sum, the commercial co-venture laws do not provide an easy out for a company when its partner charity is rocked with scandal. The seriousness of the scandal may dictate how aggressive a position the company may want to take. But the overriding message should be that cause marketing is an effective sales tool that should not be abandoned.

        You Might Be a Winner

        Promotion and sweepstakes laws vary widely across the fifty states and under federal regulations, creating complex challenges for today’s innovative marketers. This blog explores the latest updates and trends in promotion and marketing law, offering practical insights to help brands stay compliant while pushing creative boundaries. We’ll also discuss noteworthy, questionable, and groundbreaking promotional campaigns to encourage thoughtful discussion among marketing and legal professionals.

        Key Contacts

        Subscribe

        Looking for more great content? Subscribe for regular legal updates and information delivered right to your inbox.

        Firm Highlights

        Blog

        Working 9 to 5? It’s a Way to Make a Livin’, so Make Sure You’re Payin’ for Every Minute: A Maine Employer’s Guide to Stacked Wage & Hour Rules

        Four decades after Dolly Parton gave us both the namesake anthem of the American workday and the film about three fed-up office workers’ dreams of...
        Alerts and Newsletters

        Can AI Pass the Doctor Test? FDA Considers Physician-Inspired Evaluation of GenAI Devices and Other Regulatory Measures

        AI is entering healthcare with indomitable will. It promises to increase efficiency, reduce administrative burden (which healthcare providers so...
        Press Releases

        Verrill Attorney Annabel Rodriguez Named Top Women of Law by Massachusetts Lawyers Weekly

        BOSTON, Massachusetts – Verrill attorney Annabel Rodriguez has been recognized as a Top Women of Law by Massachusetts Lawyers Weekly, and will be...
        Blog

        What Employee Benefits Lawyers Do (and How to Make the Best Use of Us)

        What do employee benefits lawyers do all day and how can clients make the best use of them? This post offers an overview of the kinds of things...
        Media Mentions

        Bloomberg Law Quotes Robert Keach on Expanded Access to Small Business Reorganization

        Verrill attorney Bob Keach was recently featured in Bloomberg Law, discussing legislation that would raise debt limits for bankruptcy relief and...
        Blog

        Phil Bartlett to Step Down as Chair of the Maine Public Utilities Commission

        On September 15, 2026, Governor Janet Mills announced that Phil Bartlett will step down as Chair of the Maine Public Utilities Commission (PUC)...
        Published Works

        Jay McCormack and Michael Fee Co-Author AHLA Article on Skin Substitute Enforcement Trends

        Verrill Partners Jay McCormack and Michael Fee co-authored an article for the American Health Law Association's Fraud and Abuse Practice Group...
        Press Releases

        Verrill Welcomes Health Care & Life Sciences Attorney Elpida Velmahos

        BOSTON, Massachusetts – Verrill is pleased to announce that Elpida Velmahos has joined the firm’s Health Care & Life Sciences Group as an...
        Press Releases

        Verrill Welcomes Litigation & Trial Attorney Emma Pooler

        PORTLAND, Maine – Verrill is pleased to announce that Emma Pooler has joined the firm’s Litigation & Trial Group as an Associate, resident in...
        Published Works

        Four Verrill Attorneys Co-Author Massachusetts Trends and Developments Chapter for Chambers and Partners Child Relocation 2026 Guide

        Verrill attorneys Mary H. Schmidt, Rachel A. Deering, Hannah R. Zukoff, and Mariah G. Tappan co-authored the “Trends and Developments” chapter...
        Blog

        A New Protected Class in Maine: Holders of Final Protection Orders

        In the lead-up to Domestic Violence Awareness Month in October, employers may be taking a closer look at how their policies and practices respond to...
        Alerts and Newsletters

        Verrill Secures SJC Victory for Boston Legacy FC in White Stadium Litigation

        Verrill has secured a significant appellate victory for Boston Legacy FC in the litigation challenging the redevelopment of White Stadium in...