GNYADA 2019 Membership Directory & Services Guide

to eliminate is the giving of a consideration to enter. To do this, a sweepstakes must give consumers the right to enter without making a purchase (such as bymailing in a postcard). For example, running a sweepstakes open only to consumers who purchased or leased vehicles. Some states require bonding for certain consumer sweepstakes. Promotions for sweepstakes must clearly disclose the rules (for example, the method of entry, eligibility, method of determining the winner, prizes, and odds of winning). The promotion should also state that no purchase is necessary to enter and that making a purchase will not improve chances of winning a prize. The sweepstakes provider must provide a notification system that allows consumers to have their names removed within 60 days from the mailing lists of that provider. In addition, the provider must report to the IRS the amount of prizes received by certain winners. Dealers that use prize promotions should consider seeking advice from an attorney familiar with the laws of the states where the sweepstakes will be conducted or with the appropriate government agencies in those states. The laws can be complex. Online (“Digital”) Advertising The use of digital media to promote businesses and their products is increasing at a rapid rate, and federal and state law enforcement agencies have responded accordingly. The most important thing to know is that the same basic compliance rules that apply to other forms of advertising also apply to digital advertisements. For example, representations must be true and substantiated and must include clear and conspicuous disclosures when necessary to dispel any misleading impression created by the ad. The different characteristics of the Internet and the devices used to access it can create unique compliance concerns, and making effective disclosures can be especially challenging in online media, as the user experience can vary widely depending on the consumer and type of device. As in other media, online disclosures must be prominent and proximate to the claims or terms they are qualifying. But, this can be very difficult to do on a mobile device with a small screen. In March 2013, the FTC issued an update to its“Dot ComDisclosures”guide to making effective online disclosures. The FTC emphasized that consumer protection laws apply equally to all advertising, regardless of the medium used, and include digital and social media. Disclosures required to avoid deception or otherwise comply with the law must be presented in a clear and conspicuous manner, and space constraints do not relieve the advertiser of this obligation. In terms of prominence and placement, advertisers should be creative in using color, size, and graphics tomake the disclosure more readily noticeable. Material disclosures should not be buried in long paragraphs of scrolling text, in the website’s “terms and conditions,” or in footnotes. They should be on the same screen as the claim they are qualifying and should be as close to the claim as possible. Generic statements such as“see below”are insufficient, especially if the consumer must scroll to see it. In some cases, it may be acceptable to use hyperlinks to take the reader to a separate page containing the disclosure, but only if the link itself is clear and prominent, takes the reader directly to the disclosure, and is labeled to explain the nature of the information and its importance (such as, “Click here to learn more about options you can purchase”). But hyperlinks cannot be used to communicate disclosures that are “an integral part of the claim.” For example, disclosures about added fees and costs that consumers must pay to purchase the product should really be in close proximity to the price claims, and not on a separate screen or page.

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PG 174