Sweepstakes and Contests Defined
Sweepstakes and contests have long been a popular method of promotion for brands and products. Sweepstakes and contests often use 900 number entry or entry via premium SMS.
Sweepstakes and contests are some of the most highly regulated of marketing tactics. Furthermore, sweepstakes are regulated by a complex set of individual state laws that add to the complexity of the already existing national laws.
If you wish to promote a sweepstakes or contest via 900 number or premium SMS, we encourage you to obtain your own legal opinions. The following information is supplied solely as a guideline and is not intended to offer legal advice.
Consideration — Although the actual definition of consideration varies widely from state to state, consideration generally means that a willing participant is required to make a purchase or pay for access to be eligible to enter a game. By using a 900 number or premium SMS, there is an inherent consideration involved.
Sweepstakes — A sweepstakes is a legal game that includes a prize and a game of chance. No consideration is permitted in a legal sweepstakes.
Contest — A contest is a promotional mechanism that includes a prize and is a game of skill. Consideration is permitted in a contest, but there can be no element of chance at any point in a contest.
Lottery — A lottery is a game that includes a prize, a game of chance, and a consideration. Federal legislation and State laws govern all lotteries for promotional purposes. Therefore, you are not able to run a lottery.
So, you may be wondering, how come I see some sweepstakes that do charge people to enter? That may very well be the case, but it is likely that the sweepstakes is offering some “Alternative Form of Free Entry.” In other words, if you wish to run a sweepstakes via a 900 number or premium SMS, like Deal or No Deal did, you need also provide a completely free form of entry whereby the free entrants receive the same opportunity to win the prize as those who have paid for the entry.
Again, if you wish to run any type of sweepstakes or contest, you should not take the content herewith as legal advice, as we are not attorneys. You should consult your own attorney and get the necessary opinion letters prior to running your program.
Taiwan Baseball 900 Number
An oldie but a goodie from the history of 900 numbers. Here’s a 900 number TV commercial from Advanced Telecom Services’ Taiwan office.
A Review of World Telemedia 2011
by Bob Bentz
Amsterdam, The Netherlands – World Telemedia 2011 has just concluded in Amsterdam, The Netherlands and most delegates indicated that the show was a success for them. There was a definite feeling that the industry has improved and this savvy group of pros continues to churn out new and innovative telemedia applications despite a tough economy, over-regulation, and ever-changing technology.
This year, World Telemedia had more focus than ever on mobile marketing. In fact, the show had its own Custom QR Code that enabled participants to put a mobile web site on their smartphones. The site included the show schedule and a handy Google map that showed the best restaurants and entertainment in the area.
This year, World Telemedia combined forces with World Intertainment for the Amsterdam show. While looking around the conference center, however, it appeared as though there were mostly familiar faces there this year. Most of those attending have been in the industry for many years and seem happy to spend time with each other, despite often being direct competitors.
Significant business was conducted on the trade show exhibit floor in the historic 17th century Koepelkerk building adjacent to the contemporary Renaissance Hotel in Amsterdam. There was a significant amount of business cards being traded and it was interesting to note that the storied business card is still a staple, even with this high tech group.
While business was being transacted on the Koepelkerk floor, the upper three floors were hosting a wide range of seminars expertly hosted by industry veteran Paul Skeldon. Although Skeldon does not directly work in the business, his knowledge of the business is obvious and his ability to ask pointed questions of the panelists is the mark of a top notch journalist.
One of the more comical moments in the seminars occurred when the panelists of a Wednesday conference discussed whether they could actually say the “A” word during the show. Come on guys, what’s the big deal?
Another improvement in the show was the lunch food served both Thursday and Friday to the delegates. Several comments were made about the quality of the grub and several people remembered just how poor the food was back at the Liverpool show two years ago.
The Renaissance Hotel in Amsterdam is deserving of its 4 star rating. The rooms were very clean and attractive and the beds were comfortable. Breakfast was a bit pricey at 26 euros, but an over-priced breakfast is common at top hotels. The major complaint of many of the delegates was that the internet access was a whopping 19.95 euros for 24 hours and the quality of the internet was poor. In fact, it was so poor that it didn’t reach across the narrow street into the Koepelkerk building so those who desired internet access both in their room and at the show need to pay twice!
The Platinum sponsor of the 2011 World Telemedia Show was International Premiums and Gold sponsors were Atlas Interactive and Advanced Telecom Services.
Clearly, one of the highlights of World Telemedia 2011 was Amsterdam itself. Amsterdam has been the most common venue for past World Telemedia shows and the delegates seemed to like the easier travel and the unique ambiance that Amsterdam offers. It will be interesting if the World Telemedia staff decides to go back to Amsterdam in 2012. If they do, there will be many telemedia experts who are happy to go once again.
Advanced Telecom Services Sponsors World Telemedia
Advanced Telecom Services will be a gold sponsor at the October 12-14, 2011 World Telemedia Show in Amsterdam.
900 Pitch Man Lapre Dies
900 number pitch man Don Lapre has died of an apparent suicide, says TMZ.
Lapre was found dead in his Arizona jail cell on Sunday morning with puddles of blood around him. Lapre was scheduled to appear in court on Tuesday to face 41 charges against him concerning a vitamin product that he was hawking. Lapre has been warned since 2005 by the FDA that his vitamin product did not produce the benefits that Lapre touted.
Don Lapre was perhaps best known for his promotion of being able to make thousands of dollars per month with “tiny classified ads” and 900 numbers run by service bureaus.
Verizon Strike Slows 900 Number Requests
As the Verizon strike enters its third week, Advanced Telecom Services is experiencing delays in the start of new 900 numbers ordered through MCI/Verizon. We sincerely regret the problems caused by the strike of 45,000 technical workers at Verizon and are doing our best to work through these requests during the strike.
For more on the Verizon strike, read this article from the New York Times.
Premium Rate Complaints Down in UK
Advanced Telecom Services offers easy expansion of your premium rate 900 number programs to the UK through its London office. ATS has been active in the United Kingdom premium rate services market since 1992.
Complaints about premium rate telephone services (PRS) have declined by 77% over two years, according to recent figures issued by the UK PRS regulator, PhonepayPlus, in its Annual Report. Other good news statistics for consumers and industry were a 74% decrease in fines to industry for serious breaches of PhonepayPlus’ Code of Practice in the last financial year, while the market grew from £810 million to £816 million in 2010.
As the UK PRS industry gears up for changes to regulation that come into force on 1 September, the news of growing consumer confidence in PRS was welcomed by the regulator, consumers and industry. PhonepayPlus’ Annual Report 2010/11 highlights the effectiveness of the collaborative regulatory model where the regulator works with the PRS industry to pre-empt consumer harm before it happens, allowing innovation that benefits both consumers and the market while acting swiftly and effectively to clamp down on services and providers that cause problems.
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