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ARTICLE · 27 JULY 2022

FTC Returning Almost $25 Million To Consumers For Sweepstakes Law Violations

Klein Moynihan Turco LLP
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Running a successful sweepstakes contest is a proven, effective way to expand and retain your customer base.

United StatesConsumer Protection
David O. Klein
David O. Klein
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Running a successful sweepstakes contest is a proven, effective way to expand and retain your customer base. In order for the contest to be successful, the entire promotion must be prepared and executed according to applicable regulations, down to the issuing of prizes. Failing to adhere to sweepstakes laws will serve to invalidate the contest at the very least and expose promotors to liability and monetary penalties at the worst. Unfortunately, there are scheming contest promoters out there who not only fail to follow applicable regulations, but even use scam techniques to dupe vulnerable consumers.

An Example of Why You Need to Follow Sweepstakes Laws

The Federal Trade Commission's ("FTC's") complaint against Next-Gen, Inc., and related individuals (and corporations under their control), alleged that defendants sent tens of millions of deceptive personalized mailers to consumers throughout the world. According to the FTC's press release, these mailers

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