Reese’s may be in violation of state and federal laws with its new sweepstakes offer currently advertised on packs of peanut butter cups.
The promotion on two-cup packages reads “You could win $25,000” and, in smaller print, “See details inside.” But only after consumers have bought and opened a package can they see the small print: no purchase is necessary to enter the sweepstakes.
Sweepstakes are primarily governed by state laws, which require that no purchase is necessary to participate. A contest that requires a purchase is a lottery, which is subject to different rules.Three federal agencies — Federal Trade Commission, the Federal Communications Commission and the U.S. Postal Service — also enforce laws governing sweepstakes depending on the type of promotion.
“As with all of our promotions, we place great care and diligence to ensure they are compliant with all regulations,” Hershey said in a statement.The company also said in-store displays showed abbreviated rules for the sweepstakes, including how to enter without making a purchase. But Dworsky said a spot check of candy displays in multiple states, including California, Virginia and Washington, found no such signs.
Packages purchased by an Associated Press reporter at a Michigan drugstore didn't contain QR codes, and the store had no signage explaining the promotion.
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