Sweepstakes have become a staple of motion picture marketing and promotion. Prizes include trips, premiere tickets, home entertainment centers, portable electronics, cars, vacations, tickets, DVDs, T-shirts, cell phones, shopping sprees and gift certificates. Internet sweepstakes continue to be one of the most popular methods of driving traffic to a company's Web site, collecting valuable consumer information and generating positive goodwill.
But sweepstakes are hardly trouble-free advertising. Because of the potential for consumer deception, the U.S. Postal Service and Federal Trade Commission are on constant lookout for unfair or deceptive promotions. In addition, every state's attorney general has the authority to investigate sweepstakes that may violate state consumer protection or anti-lottery statutes. Disgruntled sweepstakes participants can file their own lawsuits as well.
To be sure, sweepstakes can generate terrific "buzz" for an upcoming motion picture. But it takes careful planning and attention to legal requirements to ensure that the objective of such a promotion - generating goodwill among moviegoers - ultimately is achieved. This article reviews recent cases and the lessons they teach to those who regularly conduct sweepstakes.
For reprints of this article or additional information, contact the author David Halberstadter.