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Coinbase Sued for Misleading Sweepstakes Advertising

David Klein October 26, 2021

On October 19, Coinbase Global, Inc. (“Coinbase”) filed a motion to compel arbitration in the proposed class action arising out of its “Dogecoin Sweepstakes.” Dogecoin traders (collectively, “Traders”) brought a class action lawsuit against Coinbase and Marden-Kane, Inc. (“MKI”) (collectively the “Defendants”) for allegedly engaging in false, deceptive and misleading sweepstakes advertising. Coinbase,

NFT Contests and NFT Sweepstakes: What Businesses Need to Know

David Klein October 19, 2021

NFTs (short for non-fungible tokens) represent a rapidly-growing industry in the online space. As evidence of this trend, sales of NFTs exceeded $2 billion in the first quarter of 2021 alone. In an effort to attract consumers in this increasingly competitive environment, NFT purveyors frequently turn to promotional NFT contests

Does Your Business Need a Sweepstakes Opinion Letter?

David Klein August 19, 2021

Sweepstakes and similar promotional contests have been a popular marketing and brand outreach tool for decades. Recently, businesses have been utilizing the sweepstakes promotional model in conjunction with social media websites and other online and mobile marketing venues. These mobile and online mediums can be employed to vastly expand the visibility

Is the Favorite Chef Contest an Illegal Sweepstakes?

David Klein July 23, 2021

On June 24, 2021, Bridget and Lisa Ward (the “Plaintiffs”) filed a class action lawsuit against Crow Vote LLC (“Crow Vote”), its owner Darrin Austin, and celebrity chef Edward Matney (collectively, the “Defendants”). The complaint alleges that the “Favorite Chef” contest promoted by Defendants was actually an illegal sweepstakes that

Can a Sweepstakes Require a Purchase to Enter?

David Klein July 20, 2021

Sweepstakes and similar promotional contests can be cost-effective means of marketing a product, service or brand based, in part, on the buzz generated by the allure of prizes. Sweepstakes can also be a useful method for generating sales/purchases. However, various laws can make generating sales via promotional contests a risky

Make Your Mobile App Sweepstakes More Appealing

David Klein June 9, 2021

The mobile space is currently inundated with mobile apps that serve myriad purposes. If you are in need of a mobile application for a certain function, it’s more than likely that there’s an app for that. Within that competitive environment, it is becoming increasingly difficult for mobile app operators to differentiate their offerings

Sweepstakes Guidelines: Laws, Rules and Regulations Governing Sweepstakes Promotions

David Klein June 8, 2021

Sweepstakes Guidelines Help Ensure Fair Play State and federal governmental bodies in the United States have established a comprehensive framework of laws, rules, and regulations applicable to sweepstakes promotions. These sweepstakes guidelines are designed to limit potential abuse and help ensure that sweepstakes and similar promotions are conducted as part

Why Your Sweepstakes Needs “No Purchase Necessary” Language

David Klein April 28, 2021

Promotional contests and sweepstakes are an effective and cost efficient means to generate buzz and often sales of a given product or service. Consumers are often incentivized to make a purchase by the allure of the chance to win a valuable prize. However, when designing a sweepstakes, it is important

Sweepstakes Disclaimers: Don’t Put Your Promotion at Risk

David Klein April 28, 2021

This blog post was updated on May 30th, 2022 for comprehensiveness. Promotional contests and sweepstakes are particularly effective ways of creating brand awareness and attracting new customers. Unlike static, non-interactive banner advertisements, sweepstakes promotions are a great means to entice and incentivize consumer engagement with the allure of prizes and other benefits. When

New York Sweepstakes Law: Are You Compliant?

David Klein April 16, 2021

In general, a lottery exists when entrants pay for the chance to win a prize. States alone reserve the right to administer lotteries. Businesses can eliminate one element of what would otherwise be an illegal lottery, in order to transform it into a legal promotional game. If the requirement to

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