Running A Sweepstakes? Beware Of Triggering The Sweepstakes Consideration Element

Businesses often employ sweepstakes promotions as a marketing vehicle to promote their goods and services. Sweepstakes can also constitute the business itself, e.g., Publishers Clearing House.  When done well, sweepstakes can become cultural phenomena, such as the McDonald's Monopoly sweepstakes promotion. Alternatively, when done poorly, sweepstakes can have adverse business consequences and cause marketing teams to wish that they had never run them. There is a lot of regulatory nuance involved in running sweepstakes promotions. As such, it is important to consult with seasoned marketing attorneys to ensure that contests comply with applicable federal and state laws. One pitfall of the unwary is the issue of sweepstakes consideration.