Legal Issues Affecting Promotions and Sweepstakes

01 March 2006 Publication
Authors: Jane Fergason

Direct Selling News

For years, direct selling companies have used promotions and incentives such as cruises, cars and jewelry to motivate and reward their distributors. Well-run promotions enhance good will, can generate brand awareness and may improve sales. However, these promotions have grown increasingly more sophisticated and the method of conducting them more complicated. Promotions such as sweepstakes, gift cards and awards are governed by a collection of inconsistent laws. Direct selling companies want to avoid conducting raffles or lotteries that violate federal or state laws and should be aware of federal and state regulations when offering legitimate promotions and sweepstakes.

Private lotteries or raffles (unless charitable) are illegal in most states. Federal and state jurisdictions define a lottery as a promotion that contains three elements:

a. A prize

b. Chance

c. Consideration

Read more.

Related Services

Insights

Lacktman, Ferrante Cited in mHealth Intelligence About Ryan Haight Act
19 September 2019
mHealth Intelligence
Vernaglia Comments on AHA v Azar Decision
18 September 2019
MedPage Today
Tinnen Discusses How Viewpoint Diversity Helps Businesses Thrive
18 September 2019
InsideTrack
Lach Comments on Launch of New Group
16 September 2019
BizTimes Milwaukee
MedTech Impact Expo & Conference
13-15 December 2019
Las Vegas, NV
Review of 2020 Medicare Changes for Telehealth
11 December 2019
Member Call
BRG Healthcare Leadership Conference
06 December 2019
Washington, D.C.
CTeL Telehealth Fall Summit 2019
04-06 December 2019
Washington, D.C.