In April, we blogged about how Reese Witherspoon’s fashion line, Draper James, LLC (“Draper James”), was roundly criticized for creating the false impression that all teachers who registered on its website would be given a free dress. In reality, teachers were merely entered into a sweepstakes for a chance to win only one of a limited 250 dresses available to entrants. Recently, a group of teachers in California sued both Draper James and Reese Witherspoon over the failed marketing stunt. The complaint alleges, among other things, that “[t]here was no indication this was some form of lottery, or that Defendants would only be making an unreasonably limited number of products available under this offer or place an unreasonable limitation on quantity, or that there were any other material limitations on this offer.” Had Draper James retained a sweepstakes law attorney prior to launching their promotion, they would have likely avoided the ensuing social media firestorm.
How do you comply with sweepstakes law?
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