FTC Wins Robocall-Blocking Technology Lawsuit with Contest Rules

In August 2013, Mr. David Frankel initiated a lawsuit against the Federal Trade Commission (the "FTC" or "Commission") for snubbing his submission to an FTC-sponsored contest concerning robocall-blocking technology. On July 31, 2015, the U.S. Court of Federal Claims unsealed its opinion and order, granting the Commission's motion for summary judgment against Mr. Frankel and dismissing the case. The court's opinion focuses on the terms and conditions contained in the FTC's contest rules.

How important are contest and sweepstakes rules when sponsors are faced with potential liability?

FTC Contest for Robocall-Blocking Technology

In 2012, the Commission launched its FTC Robocall Challenge, which offered a $50,000 prize for the best new robocall-blocking technology proposed by a contestant. The FTC received approximately 800 timely entries, about 260 of which proceeded to the expert judging phase (including Frankel's, which was named "It's My Number").