Are companies who create contests required by law to make the contests "No Purchase neccesary"?

Question

I'm just curious, because I've always noticed. Was there some sort of court ruling that requires it?

Answer 1

Yes and no. The simplified version: If they didn't offer the no purchase necessary function then it couldn't be classified as a "give away" and they would fall under games for profit rulings which are illegal in a lot of states and only open to nonprofit and school organizations in others.

Publishers Clearinghouse got sued a couple of years ago because they targeted elderly consumers who tend to believe that if they purchased a magazine then they would have better odds of winning. I had an elderly uncle unbeknownst to anyone had amassed a huge cache of magazines and other items entering contest. He was hiding them in the attic. To this day we still have a huge assortment of pot holders, scales, pens, paperclips, you name it. Just from him entering those contest.

Answer 2

Sweepstakes-type promotions that require a purchase by participants are illegal in the United States. Check out the FTC's Web site (see source below) and scroll down for "Contests and Sweepstakes."

Answer 3

yes they are. they have to make their contests open to the general public, and not just someone who buys their product. that is why you will see "go to this website to have a chance in this drawing. no purchase necessary".

Answer 4

See Angrysandwichguy vs. Montana, 1974. This will answer your question. I also suggest you talk to Judge Thomas. Just don't ask him about the Coke can.

Answer 5

No, they have the contest to generate buisness, and by putting "No Purchess Nessassary" on the contest, it attracts more consumers to purchess their product.

Answer 6

no they are not required by law is the company's call if they want to make it so.

Answer 7

I dont think so. The companies probably realized that people dont necessarily want to buy something to win something, that's my guess...