Quiznos initially relied upon the Communications Decency Act (CDA), which potentially immunizes providers of interactive computer services from the responsibility of user postings on their sites.
The court refused to dismiss the action under the CDA, and the action is proceeding, with trial scheduled for 2009. Craftmatic FTC AG Actions According to the FTC, Craftmatic - (the direct to consumer marketer of beds) and three of its subsidiaries ran sweepstakes promotions offering consumers who filled out an entry form the chance to win the prize of a Craftmatic bed.
The FTC alleged in its complaint that the defendant's mailings, which incorporated an "everybody wins" as part of an offer for a sweepstakes newsletter, created the impression that consumers had won the large prize instead of the nominal $1 prize.
As part of the settlement, defendants agreed to pay $1.375 million to the FTC and $125,000 to the Postal Service and accepted a ban from any involvement in prize promotions.
In January 2008, the sponsor learned that the story was fake and revoked the prize based, in part, on a provision in the rules, which prohibited "acting in an unsportsmanlike or disruptive manner." The contest rules did not specify the criteria for the essay or state that the essay must be true. Publishers Clearing House/Iowa Settlement In December 2007, Publishers Clearing House entered a settlement with the Iowa Attorney General.
The Letter of Understanding with the Attorney General's Office requires PCH to implement a program to identify elderly consumers at various points, such as when an Iowan age 65 or over has spent 0 or more in a calendar quarter for PCH products.The essay writing contest asked entrants to write why they deserved to see Hanna Montana in concert.The mother and daughter wrote that the child's father had died that year in Iraq.The recently issued decisions out of the federal court in Los Angeles, California denying defendants' motions to dismiss class and representative action claims demonstrates the risk in having a "pay to play" component in sms game promotions.This is true even where there is a free no-purchase alternative method of entry that is readily taken advantage of by consumers.The question that have been certified are, does Georgia Law (O. A fantasy sport is a game played by an estimated 16 million adults in the U. In the leagues at issue, users are required to pay a fee in order to participate and a prize is awarded to the winning team manager/users.However, the prizes offered were not based upon the payments received by the sponsors or participants, rather the prizes were offered without regard to how many people played or how much money was generated.The federal court ruled that the entry fee payments in the fantasy games at issue are not considered wagers or bets, and as a result, fantasy sports games do not constitute illegal gambling. that is guaranteed to be won by one of the contestants." In particular, the court noted that the element of risk, a necessary element to constitute gambling, was missing from fantasy sports leagues.The court held that "entry fees do not constitute bets or wagers where they are paid unconditionally for the privilege of participating in a contest, and the prize is for an amount . In the court's view, the fact that each contestant was required to pay an entrance fee, where the entrance fee did not specifically make up the purse or premium contested for, did not convert the contest into a wager.Finally, the FTC alleged Craftmatic ignored consumers' requests to be placed on the company's entity-specific do not call list.In settling the complaint, Craftmatic has agreed to pay a .4 million civil penalty, the second largest ever for DNC-related violations. Hanna Montana/Club Libby Lu Promotion Disaster A six-year old girl and her mother submitted a fake essay in order to win the grand prize of tickets to a sold-out Hanna Montana concert.