Online Sweepstakes for Major Pet Food Company
Thorough knowledge of sweepstakes law saves client significant legal fees.
Background:
The brand team and its agency designed a promotion whereby customers could immediately claim their prize by entering a code from the bottom of the canister on the product's website. To appeal to customer's instant gratification, the promotion was even called "Instant Win Game". Since sweepstakes rules vary by media, PFC worked closely with the product team's marketing agency in writing all the rules and providing most of the legal advice for the promotion.
Challenge: In researching the latest rules, PFC's legal firm discovered a patent for a similar instant win process that had just been activated. The patent holder demanded $75,000 plus$.02 per entry or risk a patent violation suit. Most companies and associations in the promotion business were not yet aware of this.
Approach: To avoid the significant fee or possible patent infringement yet still stage the promotion, PFC conferred with the client and the game concept was immediately changed so that customers would be entered in a drawing without the instant win notification. The promotion was renamed to remove the phrase "Instant Win."
Results:
- PFC's in depth knowledge of promotion rules and sweepstakes law led to the learning of the new patent before the sweepstakes was finalized.
- The client was able to change the promotion to meet deadlines, maintain awareness.
- The client saved almost $100,000 in royalty payments and eliminated possible legal conflicts.
- PFC took care of the details: hosted the website, maintained a database of entries, validated codes, performed daily and final drawings, and mailed the winner's prizes and all the non-winners a sorry coupon.
- The promotion was a resounding success due to getting key facts and taking quick action.
Is your Fulfillment Company offering you advice based on the latest promotion law? PFC has over 30 years experience in developing comprehensive rules and regulations as well as researching the most current legal issues to make sure your promotion is staged without any unpleasant surprises.
Call PFC now to discuss your needs: 1-800-493-7063. Or use our contact form.
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