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ARTICLE · 06 APRIL 2022

Your Giveaway May Violate Applicable Sweepstakes Laws

Klein Moynihan Turco LLP
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Brands often use giveaways as a marketing tool to create buzz among the consuming public. When done correctly, businesses can see an increase in revenue and consumer loyalty through giveaways.

United StatesMedia, Telecoms, IT, Entertainment
David O. Klein
David O. Klein
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Brands often use giveaways as a marketing tool to create buzz among the consuming public. When done correctly, businesses can see an increase in revenue and consumer loyalty through giveaways. However, when a giveaway campaign is poorly structured, brands can suffer reputational harm and may be subject to regulatory action and/or civil litigation.

Giveaway Gone Wrong 

An example of a giveaway gone wrong concerns one offered by Reese Witherspoon's fashion line, Draper James, LLC ("Draper James") in 2020. The subject Draper James' Instagram giveaway post read: "Draper James would like to give teachers a free dress." The post did go on to explain that a registration form needed to be completed and that the offer was only "valid while supplies last." 

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