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ARTICLE · 23 FEBRUARY 2001

Promotion Law 101

Frankfurt Garbus Kurnit Klein & Selz PC
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United StatesMedia, Telecoms, IT, Entertainment
Richard Kurnit
Richard Kurnit

In order to avoid creating an illegal lottery one of the following must be eliminated: 1) the award of a prize, 2) determined on the basis of chance, 3) consideration is paid to participate.

Promotional Sweepstakes

All states permit sweepstakes in connection with promotions of other products or services provided that no consideration is required. Thus, "No Purchase Necessary and an explanation of the " Alternate Means of Entry" (" AMOE") must be prominently disclosed. The chances of winning through the AMOE must be equal to chances of winning through purchase of the product. A stamped self-addressed envelope may be required (except State of Washington) in order I.O obtain the AMOE. A store visit is not consideration (except Ohio and Michigan). Certain states pose specific problems: Bottle cap (Alabama. West Virginia. Hawaii, Puerto Rico); In-Pack (Minnesota. Wisconsin, Vermont).

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