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Sales Promotions, Contests, and Sweepstakes

by Practical Law Commercial Transactions

Maintained | USA (National/Federal)

A Practice Note examining the US legal framework for sales promotions, covering both consumer and trade promotional activities. It outlines key federal regulations, particularly the FTC Act and state unfair and deceptive acts and practices (UDAP) laws that aim to prevent false and misleading advertising. The Note details legal requirements for various promotion types, including price discounts, free offers, rebates, contests, and sweepstakes, while addressing additional compliance challenges for online promotions, such as data privacy regulations and the Children's Online Privacy Protection Act (COPPA). It also explores the Robinson-Patman Act's implications for trade promotions, focusing on price discrimination concerns and promotional allowances. The Note offers practical guidance on structuring promotions to avoid legal pitfalls, with attention to potential penalties, consumer complaints, and the detailed state legal requirements for contests and sweepstakes.

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