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

        Will The Consumer Review Fairness Act of 2016 Affect Contests and Sweepstakes? (Hint: Yes)

        by Robert Laplaca on January 9, 2017

        On December 14, 2016, the Consumer Review Fairness Act of 2016 was passed to try to put an end to companies taking down nasty reviews about their products.

        Congress’s way of telling companies: if you ask for it, you’re gonna get it.

        The new law – effective March 14, 2017 – generally prohibits companies from imposing upon users a restriction for posting negative written, oral or pictorial reviews or similar performance assessments about the company’s goods or services. The new law also prohibits mandating people to transfer their rights to their reviews or feedback to the company (a nonexclusive license is ok).

        Could this new law have a dramatic and lasting impact on contests and sweepstakes as we know it? I don’t think we’re quite at Chicken Little stage, but the reach of this new law could have a serious effect on contests and sweepstakes that seek reviews or feedback on a sponsor’s product. That’s because the new law applies when the restrictions are contained in “form contracts,” defined as contracts with standardized terms that the other person doesn’t have any meaningful opportunity to negotiation. Sounds like Official Rules.

        “Tell us in 3 words or less how much fun you had on your last Sponsor To The Stars vacation” or “Post your favorite Sponsor Sandwich for a chance to win even more Sponsor sandwiches.” or “Tweet the 50 things you love about Sponsor Soap to #SponsorSoapSweeps.” All potentially affected.

        There are a number of standard Official Rules provisions that may now need to be deleted or modified for these types of promotions:

        • “By entering, you grant and transfer all rights, title and interest to the Sponsor.”
          • NO GOOD.
        • “By entering you grant an unrestricted, irrevocable, non-exclusive license to Sponsor and its agents to post, display, publish, modify and use your entry Submission in any form (including in cropped or edited form, as Sponsor deems appropriate and necessary), for advertising or publicity purposes, worldwide, in any media, without further compensation, unless prohibited by law.”
          • MAY WANT TO TAKE OUT SOME WORDS – “unrestricted”, “modify”, “in any form (including in cropped or edited form, as Sponsor deems appropriate and necessary).”
        • “Sponsor reserves the right, in its sole, discretion to disqualify any entry submissions that are inconsistent with Sponsor’s corporate standards.”
          • NO GOOD.
        • “Entry submissions will be judged based upon the following criteria: (i) originality, (ii) composition; and (iii) favorable expression of Sponsor’s product.”
          • CAN’T DO (iii); perhaps change to “mention of Sponsor’s product.”
        • “All entrants are subject to Sponsor’s privacy policy and terms of use”
          • MAKE SURE YOUR TERMS OF USE ARE CONSISTENT WITH THE NEW LAW.

        The bottom line is that if a Sponsor is asking an entry to say something about the Sponsor’s product, then the Sponsor has to live with what’s said. Some may say free speech, others, the lunatics are now running the asylum.

        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

        Press Releases

        Verrill Recognized as a Best Law Firm by Best Lawyers®

        BOSTON, Mass.; AUGUSTA, Maine; BANGOR, Maine, PORTLAND, Maine; GREENWICH, Conn., and WESTPORT, Conn. – Verrill has been recognized in the 2027...
        Press Releases

        Verrill Attorney Stephen Segal Named President of the Maine Chapter of the Federal Bar Association

        PORTLAND, Maine – Verrill attorney Stephen B. Segal has been elected President of the Maine Chapter of the Federal Bar Association (FBA). The...
        Press Releases

        42 Verrill Attorneys Named 2026 Super Lawyers and Rising Stars

        BOSTON, Mass.; BANGOR, Maine; PORTLAND, Maine; and WESTPORT, Conn. – Verrill is proud to announce that 42 attorneys have been recognized in the...
        Blog

        Introduction to the Blog Post Series & PART 1: Understanding Chemical Safety Regulation A Primer on RMP, PSM, and the General Duty Clause

        If your facility handles hazardous chemicals, there is a good chance you are subject to one—or more—of the federal government’s chemical safety...
        Blog

        Self-Certification of 401(k) and 403(b) Plan Distributions

        With passage of the SECURE Act in 2019 and the SECURE 2.0 Act in 2022, 401(k) and 403(b) plan sponsors have been able, but not required, to provide...
        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...