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What you don’t know about sweepstakes and contests may hurt you

Five tips to conduct a successful promotion.

Many businesses use sweepstakes and contests to excite consumers about their products or services. These promotions can be exciting, but when problems arise, it can lead to a messy (and expensive) legal battle.

Take for example, when a consumer tried to buy a Harrier Jet with Pepsi points in 1996. The promotion encouraged consumers to collect Pepsi points in exchange for merchandise such as t-shirts and sunglasses. A Pepsi commercial featured various items and their point values: a leather jacket for 1450 points, and a Harrier Jet for 7 million Pepsi points. Pepsi contended the jet was a joke, but plaintiff purchased 7 million Pepsi points and tried to redeem them for a fighter plane. Pepsi ultimately won, but had several years’ worth of legal fees battling the case in court.

To make sure you don’t end up in a similar situation, here are a few tips to keep in mind for running a successful promotion.

…to read this article in full, visit leading US entrepreneurial resource entrepreneur.com

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Entrepreneur.com

Entrepreneur.com

Entrepreneur Magazine has been inspiring, informing and celebrating entrepreneurs since 1973. Entrepreneur.com offers real solutions to the challenges faced by entrepreneurs, including tips, tools and insider news to help build – and grow – businesses.

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