The Importance Of A Valid Sweepstakes AMOE

A recent Federal Trade Commission ("FTC") action against, and settlement with, Publisher's Clearing House ("PCH") highlights the importance of offering consumers a free alternative means of entry into all sweepstakes promotions (also referred to as a "sweepstakes AMOE"). Sweepstakes operators may enable consumers to enter a sweepstakes via the purchase of a product or service. However, in such a case, a sweepstakes AMOE must also be made available, and its existence prominently disclosed to consumers.

PCH has been the subject of numerous regulatory and litigation proceedings in the past involving its sweepstakes offerings, including a consent decree entered into in 2001. In the most recent action, the FTC alleges that PCH deceived consumers into believing that they must order products before they can enter its sweepstakes games. Further, the FTC argues that PCH led consumers to believe that purchasing products increased their odds of winning. Specifically, as