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Structuring Sweepstakes and Contests
Whether operated by a franchisor or a franchisee, contests involving skill (“contests”) or games of chance (“sweepstakes”) aimed at consumers are often an integral part of a promotional and brand-building effort. These promotions can range in size and complexity ' from a restaurant's “business card fishbowl” drawing to a complex Internet and mobile promotion. Regardless of the details of your promotion, various federal and state laws and regulations may apply. This article sets forth some key legal and practical issues you should consider when operating a promotion.
Illegal Lotteries. Generally, federal and state laws prohibit any entity other than a state (or state licensees) from conducting a “lottery.” A contest or sweepstakes that contains each of the following three elements is considered an illegal lottery:
- An element of chance ' that is, randomness or luck plays a part in the determination of winners. State laws vary on the amount of chance required to constitute an illegal lottery;
- A prize ' anything of value awarded to one or more winners chosen; and
- Consideration ' this includes monetary and non-monetary consideration, and state laws vary on the amount of consideration required to constitute an illegal lottery.
Accordingly, one of these three elements should be removed before any promotion may proceed.
The DOJ's Corporate Enforcement Policy: One Year Later
The DOJ's Criminal Division issued three declinations since the issuance of the revised CEP a year ago. Review of these cases gives insight into DOJ's implementation of the new policy in practice.
The DOJ's New Parameters for Evaluating Corporate Compliance Programs
The parameters set forth in the DOJ's memorandum have implications not only for the government's evaluation of compliance programs in the context of criminal charging decisions, but also for how defense counsel structure their conference-room advocacy seeking declinations or lesser sanctions in both criminal and civil investigations.
Use of Deferred Prosecution Agreements In White Collar Investigations
This article discusses the practical and policy reasons for the use of DPAs and NPAs in white-collar criminal investigations, and considers the NDAA's new reporting provision and its relationship with other efforts to enhance transparency in DOJ decision-making.
Bankruptcy Sales: Finding a Diamond In the Rough
There is no efficient market for the sale of bankruptcy assets. Inefficient markets yield a transactional drag, potentially dampening the ability of debtors and trustees to maximize value for creditors. This article identifies ways in which investors may more easily discover bankruptcy asset sales.
A Lawyer's System for Active Reading
Active reading comprises many daily tasks lawyers engage in, including highlighting, annotating, note taking, comparing and searching texts. It demands more than flipping or turning pages.