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Online Sweepstakes and Contests As Promotional Devices

By Alan L. Friel

Online sweepstakes and contests are frequent devices used to promote companies and their products and services. Barry Diller's InteractiveCorp re-launched its www.iwon.com site in September 2007 with the promise of $1 million in annual sweepstakes prizes and prizes of $10,000 a day on weekdays. That Web site alone is reported to have awarded over $70 million in promotional cash and prizes since its 1999 debut. While these tools of the online promotions and marketing trade offer the promise of a cost-efficient way to target interested consumers and create a great deal of buzz, they are hardly trouble-free and myriad traps await the unwary. The Attorney Generals of several states closely regulate and monitor sweepstakes and contests and failure to conduct the campaign properly can result in regulatory enforcement actions and consumer lawsuits.

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