It's Not a Lottery, It's Just Deceptive
Elon Musk's Surprising Defense to $1MM Election GiveawayIn a stunning argument to the PA Attorney General’s claim that Elon Musk’s $1MM Election Giveaway is an illegal lottery, yesterday Musk’s lawyer’s argued that it was not a random drawing subject to the lottery laws because “The $1 million recipients are not chosen by chance. We know exactly...
Pennsylvania Suit Against Musk for Operating an Illegal Lottery
In a follow up to my previous post Who Needs Rules? Elon’s Election $1MM A Day Giveaway , the Commonwealth of Pennsylvania filed a Civil Action today in the Court of Common Pleas in Philadelphia County seeking an injunction to stop the alleged illegal lottery being operated by America...
Who Needs Rules? Elon's Election $1MM A Day Giveaway
Recently, Elon Musk launched a promotion on X (formerly Twitter). The promotion, however, doesn’t follow the rules that are typically required with promotions. Here’s the ad: https://x.com/america/status/1847864967816511758?s=46 Complete with a video. The X post from @america touts: Every day from now until Election Day, one registered swing state voter...
What Do I Do With a Tik Tok Sweepstakes or Contest If Time May Be Running Out On This Platform?
This week, 14 Attorneys General have sued Tik Tok challenging its practices. If you are a sponsor who currently has a sweepstakes or contest running on Tik Tok, or if you’re considering one, you may be asking yourself what can I do to protect myself if time runs out...
It’s Time to Recognize the Hypocrisy of Sports Gambling Laws And Let Pete Rose into the MLB Hall of Fame
“Charlie Hustle” died this week – 35 years after being banned for life from Major League Baseball and from enshrinement into its Hall of Fame. I don’t need to regurgitate Pete Rose’s stats; anyone who saw him play knows how he earned his nickname and deserves to be formally...
What is the Future of Sports Betting?
The legal sports betting industry raked in $11 billion last year, plus billions in tax revenues for states. You can’t get through a 30-second TV timeout without 90 seconds of commercials for legal gaming sites. Since 2018 when the U.S. Supreme Court in Murphy v. NCAA opened the door...
Trump Trading Cards: Analyzing the Legality of a Promotion
This week Donald J. Trump announced that “Back by popular demand” he’s offering his new (Series 4) Trump Digital Trading Cards (NFTs). Being the glutton for punishment that I am, I went to the website to review the offer and its terms to give you my thoughts on some...
Answering Questions About Registering Under the New California Charitable Solicition Law AB 488
When last we wrote about registration under California’s new online charitable solicitation law (CA AB 488), we let you know that final regulations were issued on March 26, 2024, and registration under the new law would be effective on June 12, 2024, but we were waiting on California’s Online...
The Supremes Have Their Say on Arbitration and Forum Selection Clauses Affecting Sweepstakes Disputes
Wow, the U.S. Supreme Court decided a sweepstakes issue today. Anyone who has ever drafted or looked at Official Rules typically notices some clause concerning how disputes are to be resolved. Often there is forum selection or arbitration clause providing that all disputes must be resolved in [INSERT STATE...
Running a Sweepstakes Because "That's Where the Money Is" (What if Running a Sweepstakes is Your Primary Business)
“Slick Willie” Sutton knew why he robbed banks – “Because that’s where the money is.” Likewise, there is money to be made in running sweepstakes. The question arises for the intrepid entrepreneur – why not just sell anything and run continuous sweepstakes with monster-sized prizes (because that’s where the...
Putting the "CA" in Cause Marketing
CALIFORNIA FINALLY ISSUES FINAL REGULATIONS REQUIRING REGISTRATION FOR ONLINE CHARITABLE SOLICATIONS BY JUNE 12, 2024We have previously warned you about the new California law (AB 488) concerning registration for many types of online cause marketing programs. Those blog posts can be viewed here and here . On March 26, 2024, CA finally issued final regulations to its AB 488 (California Gov. Code Section...
New CCV Laws
While the U.S. Congress may have issues in its lawmaking responsibilities, the States of Tennessee and Utah recently passed legislation affecting charitable sales promotions as follows: Tennessee: Amended its “Solicitation of Charitable Funds” law and changed its name to the “Charitable Solicitations Act.” Tenn. Code § 48-101-501 et seq...
Kicking It Sweepstakes Style
Maybe it’s just me, but I think when promotion lawyers see an innovative sweepstakes, they think about the legal issues raised. I’m sure the jurisconsults debated over whether Tali, Terni Lapilli and Ludus Latrunculorum could be played without violating the extant, but not well-enforced, Roman gambling regulations. But I...
The Donation Sweepstakes
(Can We Do That?)Tis the season. Some people like to use the phrase “Doing Well by Doing Good.” Early U.S. business magnates knew that financial benefits can come from philanthropy. In 1888, Cornealius Vanderbilt donated $250,000 (that’s six trillion dollars in today’s money) to the YMCA. General Electric, Ford Motor Company, U.S...
Not Sorry? Reese's May Be In Trouble For On-Pack Sweepstakes Disclosures
Being born and raised in Pennsylvania, let me start by saying that I love Reese Cups – a perfect mix of chocolate and peanut butter that just makes you so happy. And of course, Reese’s should not be sorry that they make you want to have a Reese Cup...
How AI Can Alter Skill Contests
“I ought to be thy Adam, but I am rather the fallen angel.”AI could very well be today’s “Modern Prometheus” in the world of skill contests. Earlier this year, the AI-generated photograph “The Electrician” was a finalist in the World Photograph Organization’s Sony World Photograph Awards. Last year, another AI-generated art piece won the Colorado State Fair Fine Arts competition. Contestants...
Help! My Social Media Influencer Caused a Riot
The statistics speak for themselves: Influencer marketing in the US is valued at over $16 billion. 72% of Gen Z and Millennials follow influencers on social media. 89% of marketers intend to increase influencer marketing. And of course, 1 influencer with 3.6 million followers has giveaway in Union Square...
Never Have I Ever
The Updated FTC Endorsement Guidelines and Proposed Rule on Fake ReviewsWe’ve all at least once (and maybe only once) played the surprisingly revealing drinking game “Never Have I Ever”. You know, you go around the table with one person asking, “Never have I ever [fill in the blank]” with the others having to chug if they themselves have partaken...
GLORY, GLORY, HALLELUJAH!
VIRTUAL TEACHING PLATFORM HIT WITH COPPA RULE[R]Remember that old parody of the Battle Hymn of the Republic we used to sing before there was an Internet? There are apparently many versions, but they all generally involve children inflicting various types of mayhem on their school and its staff. The kids of today are now equipped...
Tesla’s Cybertruck Raffle
Examining loyalty points used for chance promotionsOn May 11, 2023, @BabyTesla3 sent out a Tweet: NEW: Tesla has revamped the Referral program and introduced a new loyalty program! Here’s what you need to know • S/X: 3,500 credits (referrer) • 3/Y: 2,000 credits (referrer) • S/X: 6,000 credits (loyalty) • 3/Y: 3,000 credits (loyalty) &bull...
C’est le fun!
Don’t Forget Quebec Changed its Publicity Contest LawHearing “O Canada” being proudly sung during the recent NHL playoffs reminded me to remind you that in June 2021, la province de québec somewhat quietly amended its publicity contest law in order to exempt international contests from its harsh requirements. Et viola! If you are operating a game...
“Many Will Enter, No One Will Win” The MyPillow® Guy’s Contest
A Lesson in Contest Rule InterpretationThe phrase “Many Will Enter, Few Will Win” is often used to comply with CARU’s guidelines for contests directed to children. It’s meant to make it easier for kids to understand that they really don’t have a good shot at winning a prize. Based on the new AAA Decision...
Charitable Promotions, Commercial Co-Ventures, Donors Choose, Round-Up, and Peer-To-Peer Solicitations
How The New California Law (AB 488) Will Affect Them All!It’s not often that you get BIG news in Charitable Promotions Law. But last year, California passed a comprehensive law that goes into effect on January 1, 2023. So, for all of you brands out there who are planning your 2023 charitable promotions, here’s a primer on the new...
Gambling 101: The Vice That's Getting More Nice
Gambling and more particularly the regulation of gambling has been part of the United States before we were even the United States. Societal standards and the need for revenue have largely shaped the history of legal gambling in the U.S. Risk taking and opportunism were part of the frontier...
NEWS ALERT! FTC Reverses Position On “No Purchase Necessary”
In an astonishing reversal (of fortune), the FTC today (April 1) announced that “No Purchase Necessary” is no longer necessary for games of chance, abolishing 168 years of legal precedent. With the inflation rate accelerating to 7.9%, gas prices up to $7.00 per gallon in some areas combined with...
No Oscar for You! A Look at the Morality Clause
The 94 th Academy Awards might have had dramas you never heard of (subtext COVID), but it wasn’t lacking in drama. When Will smacked Chris, a collective “whoa” rocked the Dolby Theater. The drama intensified when the question was tacitly raised, can the Academy take back Will’s Oscar? The...
Second Circuit Tells DraftKings Participants Cheating is Part of Sports – Get Over it
You read that right. The exact quote from the Second Circuit’s March 21, 2022 decision in Olsen v. Major League Baseball, Docket No. 20-1831, reads as follows: " [A]ny reasonable spectator or consumer of sports competitions—including participants in fantasy sports contests based upon such sporting events—is undoubtedly aware that...
We Donate $1MM To Charity. Do You Really? The NAD is Watching.
Two recent “routine monitoring” determinations of the National Advertising Division of BBB National Programs may indicate a trend toward the NAD’s investigation into cause-related marketing initiatives. On March 1, 2022, the NAD reported that it had reviewed: (1) DoorDash’s website claim: “We are donating $1 million, with $500,000 going...
Win a Train Wreck- Lessons From the Downfall of Artesian Builds
A custom PC company, Artesian Builds, who hyped its image by offering frequent giveaways ranging from $100 gift cards to t-shirts to custom built pcs, announced today (March 10) that it was suspending its business, following a controversy involving its Monthly Ambassador Giveaway. Please stand back when reading about...
Is it Ruff To Run an Internet Currency Sweepstakes?
Last month, a class action lawsuit was dismissed, in part, against plaintiffs who opted into Coinbase Global’s $1.2 Dogecoin sweepstakes. Dogecoin is an open source peer-to-peer digital currency (say that twice), with a cute Shiba Inu as its mascot. Even though the sweepstakes dealt with the new and ever-growing...
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