Tuesday, March 4, 2008

Consumer’s sales promotions in US

In the U.S, consumer sales promotion sponsors are very careful to disassociate themselves from any suggestion that players must pay to enter, as this would bring them into conflict with federal lottery laws. Sweepstakes typically involve enticements to enter a consumer promotion for prizes that range from fantastic wins such as cars or large sums of money to smaller prizes that are "hot" such Apple iPods. There should be no cost to the entrant to enter for the sweepstakes prize and sweepstakes winners should also not be required to pay a fee of any type to receive their prizes. Because of their potential for abuse, sweepstakes are heavily regulated in many countries. The U.S., Canada, and individual U.S. state all have laws covering sweepstakes, resulting in special rules depending on where the entrant lives. The U.S. Federal Trade Commission exercises some authority over sweepstakes promotion and sweepstakes scams in the United States.

Most corporate-sponsored sweepstakes promoted in the United States limit entry to U.S. citizens, although some allow entry by legal residents of both the United States and Canada. Among the most commonly known sweepstakes in the United States are the American Family Publishers Sweepstakes, Publisher's Clearing House and Reader's Digest Sweepstakes, each of which strongly persuade entrants to purchase magazine subscriptions by placing stickers on contest entry cardstock while promising multi-million dollar (annuity) winners who will be "announced on TV." The American Family Publishers sweepstakes traditionally used paid advertisements during NBC's The Tonight Show to announce its grand prizewinners. Fast-food restaurants frequently use sweepstakes to boost business. One of the most popular has been the McDonald's Monopoly promotion. Soft drink companies also sponsor many sweepstakes, such as the Pepsi Billion Dollar Sweepstakes game and the Pepsi Stuff loyalty rewards program that allowed Pepsi drinkers to accumulate points from packages and cups and redeem them for high-quality, free merchandise. Pepsi Stuff was Pepsi's largest and most successful long-term promotion ever and it ran for many years in the US and in many countries around the world. Other sponsors may require the submission of a UPC of a company product for entry into the sweepstakes drawing. In most sweepstakes, entrants and their relatives must not be related to the sponsor or promoter.



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