ARTICLE
21 May 2013

Vermont Lifts Restriction on Purchases in Contests of Skill

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Frankfurt Kurnit Klein & Selz

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Frankfurt Kurnit provides high quality legal services to clients in many industries and disciplines worldwide. With leading practices in entertainment, advertising, IP, technology, litigation, corporate, estate planning, charitable organizations, professional responsibility and other areas — Frankfurt Kurnit helps clients face challenging legal issues and meet their goals with efficient solutions.
big change in a small state may have made your skill contests easier: Vermont has amended its Contests and Sweepstakes law to permit marketers to require a purchase as part of a contest.
United States Media, Telecoms, IT, Entertainment

A big change in a small state may have made your skill contests easier: Vermont has amended its Contests and Sweepstakes law to permit marketers to require a purchase as part of a contest. The amendment took effect on April 26, 2013.

The amended law permits skill contests to require "an entry fee, service charge, purchase, or similar consideration." Previously, an advertiser who conducted a contest requiring a purchase had to prohibit Vermonters from entering. Now, if a marketer structures a bona fide skill contest to require a purchase of its product (e.g., via  submission of a proof of purchase), the marketer will no longer need to void Vermont, and Vermonters will be able to participate. While marketers should welcome this change, they should still be mindful of the few remaining states with restrictions on requiring a purchase to enter, or be eligible, for a contest. We caution our readers also to remember that requiring a purchase to enter a sweepstakes (without a free alternate method of entry) is never permissible, whether in Vermont or any other state.

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This alert provides general coverage of its subject area. We provide it with the understanding that Frankfurt Kurnit Klein & Selz is not engaged herein in rendering legal advice, and shall not be liable for any damages resulting from any error, inaccuracy, or omission. Our attorneys practice law only in jurisdictions in which they are properly authorized to do so. We do not seek to represent clients in other jurisdictions.

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