I am planning a sales promotion. What are the legal rules? - DFA Law

Mar 10, 2014 · What is a sales promotion? A sales promotion is a marketing device (for example, a competition or prize draw) designed to encourage the purchase of a product or service. There are laws and voluntary codes that govern most sales promotions, so you should take legal …

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What are the laws governing consumer sales promotions?

Consumer sales promotions are governed by the laws of each of the 50 states, as well as by federal laws and regulations. Sales promotions also must comply with general advertising principles and not be unfair or deceptive. ...

What is a sales promotion?

A sales promotion is a marketing device (for example, a competition or prize draw) designed to encourage the purchase of a product or service. There are laws and voluntary codes that govern most sales promotions, so you should take legal advice before holding any type of sales promotion. Failure to comply could result in your business: ...

What happens if you don't comply with sales promotions?

There are laws and voluntary codes that govern most sales promotions, so you should take legal advice before holding any type of sales promotion. Failure to comply could result in your business: Having to withdraw the campaign. Being fined. Suffering adverse publicity. Facing possible criminal prosecution. Competitions ...

What legal issues should you know before launching a sale or coupon?

Here are some legal issues to know before launching a sale or coupon at your venture. Discounts, sales, coupons and other forms of promotional pricing are governed by the Federal Trade Commission (FTC) and regulations at the individual state level. The FTC rules can be found in the Guides Against Deceptive Pricing, commonly known as “The Guides.” ...

What should be included in a sales promotion contract?

A contract for a charitable sales promotion should clearly define the parties' respective obligations (e.g., management and control of funds, promotional activities, fulfillment, warranty, indemnification terms). Many statutes require the contract to contain mandatory terms such as these. ...

Are Sales Promotions liable for deceptive pricing practices?

Sales promotions are an essential marketing tool that can be used to boost sales and build brand awareness by providing incentives for consumers to buy products. However, advertisers should make sure they are aware of the complex regulatory framework that may create liability for deceptive pricing practices. ...