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May 20th, 2013
Vermont Lifts Restriction on Purchases in Contests of Skill
A big change in a small state may have made your skill contests easier: Vermont has amended its Contests and Sweepstakes law to permit marketers to require a purchase as part of a contest. The amendment took effect on April 26, 2013.
The amended law permits skill contests to require "an entry fee, service charge, purchase, or similar consideration." Previously, an advertiser who conducted a contest requiring a purchase had to prohibit Vermonters from entering. Now, if a marketer structures a bona fide skill contest to require a purchase of its product (e.g., via submission of a proof of purchase), the marketer will no longer need to void Vermont, and Vermonters will be able to participate. While marketers should welcome this change, they should still be mindful of the few remaining states with restrictions on requiring a purchase to enter, or be eligible, for a contest. We caution our readers also to remember that requiring a purchase to enter a sweepstakes (without a free alternate method of entry) is never permissible, whether in Vermont or any other state.
If you have questions about the new Vermont law, or other advertising law topics, please contact Terri Seligman at 212.826.5580 or tseligman@fkks.com, or Kelly O'Donnell at 212.826.5544 or kodonnell@fkks.com, or any other member of the Frankfurt Kurnit Advertising Group.
Other Advertising Law Alerts
What the Advertising Industry Can Learn from Kim Kardashian’s Settlement with the SEC
On October 3, 2022, the Securities and Exchange Commission (SEC) announced that it entered into a $1.26 million settlement with Kim Kardashian over her social media promotion of the EMAX token without disclosing payment she received from token issuer, EthereumMax. The matter provides important lessons for advertisers. Read more.
October 10 2022
Get Ready for California’s New “Automatic Renewal” Rules
California recently amended its Automatic Purchase Renewals law. The amended statute - effective July 1st -- require marketers to provide consumers of automatic renewal or continuous service offers with more information and easier ways to terminate. Read more.
June 22 2018
“Made in the U.S.A.” Claims Continue to be Scrutinized
In 2016, California amended Section 17533.7 of the California Business and Professions Code ("Section 17533"), liberalizing the standard for selling products labeled "Made in U.S.A" to California consumers. Read more.
June 4 2018
