There's been a win and a loss the last few days in the legal
realm of sweepstakes and contests. Whether that's due to
chance or skill on the part of the lawyers involved we can't
say. On the winning side, a federal court judge in New York
ruled that poker is a game of skill and not
chance. (Clearly he had watched James Bond in Casino Royale). In doing so
the judge tossed out the a conviction of a man under the Illegal
Gambling Business Act, which the defendant's lawyers argued
covered only games of chance such as slot machines and
lotteries. The Judge's opinion included a lengthy
analysis demonstrating how experienced poker players have an odds
on advantage against less experienced opponents (something you
might think about the next time you're in Vegas.) Still
to be determined is whether the ruling affects other efforts to
either tighten or loosen restrictions on online poker.
On the losing side of the house, the FCC on Tuesday issued a formal notice to CBS Radio finding
that the company violated FCC regulations by failing to conduct a
consumer contest as advertised and proposing a fine of
$10,000.
In the summer of 2011 a CBS radio station in North Carolina ran
a "Carolina Cuties" contest where listeners' could
submit a picture of their baby on the station's website, with
the grand prize winner determined by public voting. A
listener who clearly thought his or her baby was a
"cutie" complained that broadcast announcements about the
contest said that voting would end on September 5, 2011 but the
station's website and emails to the contest finalists listed
September 4th as the voting deadline.
The FCC has specific rules that a broadcast licensee that offers
a prize promotion must disclose the material terms of the promotion
(including the time and means of selecting winners), and must
conduct the promotion substantially as advertised. The FCC
was not swayed by CBS Radio's explanation that the
discrepancies were due to its staff's inadvertent errors.
The FCC observed that inadequate oversight of the staff does not
excuse the company's failure to administer the promotion as
advertised. CBS Radio also submitted that the errors did not
put any contest participants at an advantage or disadvantage
because voting remained open until the originally announced closing
date. The FCC rejected that argument, noting that actual
consumer harm is not necessary in determining a violation of the
relevant FCC rule, and that there was actual and potential
harm. According to the agency, the complaining consumer was
harmed as a result of being confused by the inconsistent voting
deadline announcements, and other participants may have been harmed
in the same manner.
The FCC enforcement action against CBS Radio demonstrates that
prize promotion sponsors can be held responsible for what may seem
to be minor, technical slip-ups in the administration of a
promotion. In addition to enforcement actions by regulators
like the FCC, the Federal Trade Commission, or state consumer
protection agencies, a promotion sponsor could face a consumer
class action over problems in running the promotion.
The content of this article is intended to provide a general
guide to the subject matter. Specialist advice should be sought
about your specific circumstances.
Specific Questions relating to this article should be addressed directly to the author.
Last week, by virtue of a 63-30 procedural vote, the Senate moved forward with a bill called the Marketplace Fairness Act, with a final Senate vote set for May 6, according to The Wall Street Journal.
As featured on KPCC's Take Two the Justice Department is poised to sue Lance Armstrong for unjust enrichment, demanding that he return the reported $14 to $16 million that he pocketed as spokesperson for the U.S. Postal Service.
The State of Florida has amended its law governing games of chance, revising certain provisions including those governing game promotions and sweepstakes run by retailers and consumer brands, among others.
Corporate tweeters or bloggers – employees who post promotional and often entertaining commentary on behalf of their employers’ businesses – add much of their own personal brand – their voice, their opinions, their snarky remarks – to the information they are disseminating on the company’s behalf.
No blog can really take itself seriously unless it's written about Lindsay Lohan. Plus our Marketing Department claims she'll do wonders for our search rankings.
On April 19, the US Federal Communications Commission ("FCC") released a Notice of Proposed Rulemaking, Order, & Notice of Inquiry on the management and assignment of telephone numbers.
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