Sweepstakes

FTC Considers Hashtags in Social Media Sweepstakes and Contests

July 30, 2015 This May, the Federal Trade Commission (the “FTC” or “Commission”) answered a number of Frequently Asked Questions concerning the FTC’s Endorsement Guides. The Commission’s updated FAQ addresses one such question about hashtags used by sponsors as part of a social media sweepstakes or contest. Which hashtags should marketers avoid?

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Sweepstakes Marketer Banned from Iowa and Required to Refund Consumers

June 25, 2015 Last Monday, the Iowa Attorney General’s Office announced that it has settled its concerns with Florida-based Tactical Marketing Inc. d/b/a Prize Research Agency (PRA) and Prize Finders Network (PFN) (“Tactical Marketing”), as well as the company’s owner and president, Mr. Raymond Jastrzemski. The sweepstakes marketer has been permanently banned from delivering allegedly

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Yahoo Brings Fraud Counterclaims in March Madness Sweepstakes Lawsuit

June 2, 2015 On Tuesday of last week, Yahoo! Inc. (“Yahoo”) submitted an updated answer in the ongoing legal proceeding surrounding its botched billion-dollar 2014 March Madness sweepstakes. Yahoo’s recent filing includes new fraud and fraudulent inducement counterclaims against SCA Promotions, Inc. (“SCA”), a prize promotion and risk management company that initiated the lawsuit early

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Licensing Journal Features Article by KMT’s David Klein and Joshua Wueller

Intellectual Property Concerns for Sponsors of Promotional Contests and Sweepstakes Marketers are always looking for more effective ways to entice consumers, with the goal to build a brand and sell more products and services. Long ago, armed with the knowledge that people enjoy winning prizes, savvy promoters began offering promotional contests and sweepstakes, which encourage

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Illegal Lottery Lands Ironman Triathlons in Hot Water

May 21, 2015 Last week, the United States Attorney for the Middle District of Florida filed a Complaint seeking the forfeiture of proceeds received by the World Triathlon Corporation (“WTC”) over a period of time spanning from 2013 until 2015. The Complaint alleges that the funds were generated as proceeds from a lottery that violated

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FTC Targets Sweepstakes Scam . . . That Targets the FTC?

April 30, 2015 Last week, the Federal Trade Commission (the “FTC” or “Commission”) denounced an alleged sweepstakes scam that struck a little too close to home. According to the Commission, the audacious scammer is mailing information to consumers about an FTC investigation that never took place and offering to help collect millions in sweepstakes prize

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$9.5 Million Penalty, Lifetime Ban for Deceptive Sweepstakes Promotion

February 24, 2015 Earlier this month, the Federal Trade Commission (“FTC” or “Commission”) entered into a settlement agreement with Ms. Crystal Ewing requiring that she pay $9.5 million for the marketing and operation of deceptive sweepstakes promotions.  Additionally, Ewing has agreed to a permanent ban from all direct mail marketing in the future. Not Her

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