Posts by: Robert Laplaca

Where’s the Beef? Selling Internet Time Could Get You Time (The Sweepstakes Legitimate Product Requirement)

In 1984, Clara Peller, when opening a bun and finding only a tiny burger, first asked the famous line, “Where’s the beef?” This question is still relevant today in sweepstakes world. Even if you have an AMOE, when you provide entries for purchasing a product, it better be a hamburger and not just the aroma.

This week an attorney was reinstated to the Florida Bar after four years and having been convicted (which was later overturned and remanded) of various crimes for advising a client on the legality of running a “sweepstakes” involving internet cafés selling “internet time” to its customers who then received entries which simulated popular casino-style games to reveal whether the customer won a prize.  (more…)

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Commercial Co-Ventures What a Charity Needs to Know

Yay!  Big brand wants to team up and donate part of the purchase price of its sales to your charity.  Do you just have to sit back and watch the money come pouring in?

Procedurally, no; substantively, (mostly) yes.  Even though the “work” in a commercial co-venture may be done primarily by the commercial company in terms of registrations and actual product selling, a charity has a number of its own obligations that cannot be ignored.

A short primer:  Buy this + we donate that = commercial co-venture.  Simple. (more…)

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Liability For Inherently Dangerous Contests (How Many Nathan’s Famous Are Too Many)

It’s fun to watch Joey Chestnut race to scarf down 72 hot dogs in 10 minutes on the 4th of July, isn’t it?  At least the thousands of fans who packed the Coney Island boardwalk and over 1 million television viewers think so.  To a person, weren’t we all thinking, isn’t that dangerous?  Contest promoters may have been thinking, can we do something like this?  Just remember, fools rush in where angels fear to tread.

Very, very unfortunately, people die or get seriously injured from dangerous activity encouraged by skill contests.  Just this year a student at Sacred Heart University died a few days after participating in a charity pie eating contest and days later a man died during a donut eating contest.  And the list goes on. (more…)

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How About Some Updates?

You may or may not have heard of some recent developments in the promotion world.  If you haven’t, great, let me be the first to tell you.  If you have, my update is better.

Endorsements/Influencers

Back in the 1940s, a sociologist named Paul Lazerfield introduced the psychology behind the efficacy of influencers with his theory called “two-step flow of communication,” finding that ideas flow from mass media to “opinion leaders” who distill and pass along information to “opinion followers” with more limited knowledge. Today, this two-step “flow” of communication has become a deluge.  As a result, the FTC and social media sites are taking pains to corral it.

Instagram posted in June a “Why Transparency Matters” blog introducing its upcoming “Paid partnership with” tag for posts and stories.  Is it required?  We don’t know.  Instagram promises to release an official policy on enforcement “in the upcoming months.” (more…)

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Some Common Sweepstakes and Contests Questions Answered

Our teachers have told us that there’s no such thing as a bad question.  In that light, I’ve come up with 11 common (simple) questions about running a sweepstakes or contest.  And to prove that there are no bad questions, I’ve also gone ahead and answered them.  Enjoy!

Social Media

Q:        Can we require an entrant to share the sweepstakes on a friend’s timeline to get additional entries?

A:        No.  Stay away from personal timelines on Facebook.

Practice tip: You can ask an entrant to share the sweepstakes link with a friend to allow the friend to enter separately.

Q:        Can we ask an entrant to tweet, retweet, follow a Twitter user, or post an update? (more…)

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Should Your Company Engage in Cause Marketing? Here’s What Consumers Think

Cause marketing is good marketing according to a recent study.  

The marketing research firm Toluna conducted a survey of 1,000 U.S. adults and here’s what they had to say:

  • Almost half felt that “it’s a great way to bring attention to different national or global issues.”
  • Over half said their favorite way for companies to engage was to “donate some portion of their revenue to a recognized charity.”
  • The most popular cause was “hunger, homelessness or medical relief” followed closely by “education.”
  • A significant majority favored domestic causes over international causes.
  • Nearly two-thirds said they regularly or sometimes sought out brands that support certain causes.
  • Most said that it does not impact their willingness to purchase if they don’t agree with the cause.
  • But almost half of millennials surveyed would seek out a brand that aligned with a cause they agreed with.
  • Millennials were a little more skeptical of cause marketing, but still 80% were not skeptical.
  • Almost half of the millennials surveyed said they would spend time researching brands to see what causes they support and would be willing to pay more for these products. And 30% would even sacrifice quality for a good cause.

Once again, the surveys show that cause marketing should be a critical part of a brand’s activities.  And according to this survey, any cause marketing is worthwhile, but apparently the best thing to do is target millennials, use your revenue to make donations, support hunger, homelessness or medical relief when possible, stay domestic, and let the public know what you’re doing.

 

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