• Get involved.
    We want your input!
    Apply for Membership and join the conversations about everything related to broadcasting.

    After we receive your registration, a moderator will review it. After your registration is approved, you will be permitted to post.
    If you use a disposable or false email address, your registration will be rejected.

    After your membership is approved, please take a minute to tell us a little bit about yourself.
    https://www.radiodiscussions.com/forums/introduce-yourself.1088/

    Thanks in advance and have fun!
    RadioDiscussions Administrators

Station Promo Question for ya

Z

Zeke_Terry

Ok, I'm driving around the other day listening to a local Memphis station - for once I'll not blurt out who it is - and they ran a promo about giving away $1,000.

BUT - the only way you could get ANY info on it, was to go and see their booth at the Southern Women's Show. In fact, the promo specificly stated that NO info on this giveaway would be given on the air. You HAVE to go to the Southern Women's Show to get info.

Now, to gain entrance to the Southern Women's Show, you have to purchase admission --- see where I'm going here?

Isn't it against FCC rules to charge ANY type of fee, admission, etc. to gain info on a station sponsored giveaway of ANY type?

Now, the only way I see this being legal is IF the giveaway is NOT from the station itself, but from a third party - if that's the case, then said station is not very clear on that in their promo. It sounds like the station itself is the one ponying up the cash.

Perhaps someone with a bit more info on this can clear things up a bit.

Just wondering, 'cause we all know how often rules change and I may not be compleatly up to date with 'em.
 
They said this morning that they will have a booth at the show. You have to come by and ask what the "secret song" is. They will play that song Monday morning. The correct caller after the song is played gets the moolah.
 
Still, if the ONLY place you can find out what this "secret song" is at the Southern Womens Show - where you have to PAY admission, it's against the FCC rules.
 
I sem to recall that once upon a time it was prohibited because any type of payment for a chance to win basically constituted a "lottery." In those days, in this state (TN) lotteries were illegal and stations were very careful how contests were run.

Could it be that it's not a big deal since we have the lottery now?

Also, I recall that, not that long ago, we had to be very careful what we mentioned on the air about the casinos. Spots had to be worded very carefully so as NOT to mention slots, or gambling, or betting or whatever.

I'm sure there are certain folks on the board that can enlighten us...you know who you are....(damn lawyers, etc..)
 
It seems as if the factual situation described could very well be interpreted as a lottery.

First, the TN constitution was modified in 2003 to create a lottery exemption. It reads - "except that the legislature may authorize a state lottery if the net proceeds of the lottery's revenues are allocated to provide financial assistance to citizens of this state to enable such citizens to attend post-secondary educational institutions located within this state." - TN Const. Art. 11, § 5

T.C.A. 39-17-501 - 610 prescribes statutory exemptions and definitions the court would use to determine the legality of a promotion/sweepstakes or lottery.

Under Tennessee case law, a lottery is a transaction in which the three elements of prize,
chance, and consideration must be present. This link is a good read: http://www.attorneygeneral.state.tn.us/op/2003/OP/OP49.pdf

Let's applying the factual situation of this station -

Prize - Yes - 1 $1,000 prize.
Chance - Yes - 1 person has the chance to win
Consideration - Yes - must buy ticket to home show, attend, go by said booth and get information to participate in contest.

You could argue that consideration described is the only method of entry, along with being the correct caller when identifying the song. There is an easy out for this station. If an alternate method of entry exists, like calling in to get the title of the song or obtaining the information on the website or determining the title by mail or email, then this station would be successful in removing the consideration element and offering a sweepstakes. If this is the case, then TN law still provides many disclosures in written rules be available in public domain. T. C. A. § 47-18-124. Wonder if written rules exist?

If you have a bone to pick with this station, you should write the Attorney General.

That will be $1,000 in legal research fees.
 
> That will be $1,000 in legal research fees.

Assuming you're a lawyer. Otherwise, it's Unauthorized Practice. But, I digress...

There are two separate questions here:

1. Whether the contest is legal under TN law.
2. Whether advertising a lottery violates FEDERAL law.

As to Part 1, I can't answer that question without more information. As has been pointed out, as long as there is a free method of entry, that is not overly onerous (important!), you're slick. Now, the larger question...

Let's assume we have a clear lottery that, for whatever reason, is legal under applicable state laws. May a broadcaster advertise such a lottery? There is a school of thought that says, "yes." In Greater New Orleans Broadcasting Assn. v. US (1999), the Supreme Court found that advertising casinos is legal. Sure, the majority opinion was written narrowly, as perhaps it should have been. But, read Justice Thomas' concurrence. He wrote that government "can no more justify regulation of `commercial speech' than it can justify regulation of `noncommercial' speech." Wow; that's broad. He is essentially saying that ANY ad is legal, provided, of course, that its subject matter is legal. There is more here, but it is way beyond the scope of this Board.

Granted, Thomas was merely concurring. But, this is strong indication of where the law would go, if a broader question came to the Court. The 1st Amendment is a beautiful thing.

No Charge.

DE
 
There is a sign @ the door of the Southern Women's Show that is identical to the sign @ the booth. It is located at the door before you have to pay to get in.
I saw it w/me own eyes.
The whole "no purchase necessary" wins again!
 
If the station isn't itself the beneficiary of the admission fees, I'm not sure what the problem could be. Of course my opinion and the law have had a few disagreements before, but we won't get into that... ;D
 
The phrase "no purchase necessary" is legal for "we have an alternate method of entry." Legal risk is not eliminated just because some magical phrase is in a disclaimer. What instructions did the disclaimer provide for the alternate method of entry? Send something by mail? Email? Go to a web site? If no reasonable alternate method of entry is provided, this could most likely be considered a lottery.

Beneficiaries of admission fees are not applicable, only that the participant pay ANY admission to participate in the promotion. It is not legal for any entity (except the education commission that executes the TN Lottery and some charities from raffle type promotions) to conduct a lottery in TN (ex. St. Jude Dream Home).

Next time you buy a coke and see the "Coke Rewards," read the disclaimer thoroughly. You don't have to buy the coke to get the codes to participate in their promotion (no purchase necessary). If you did, it would be a lottery. The disclaimer provides details on where to mail your request to be provided "free" codes to participate in the reward programs (alternate method of entry).
 
NinjaBoot said:
There is a sign @ the door of the Southern Women's Show that is identical to the sign @ the booth. It is located at the door before you have to pay to get in.
I saw it w/me own eyes.
The whole "no purchase necessary" wins again!
Click to expand...


hmmmm...I wonder if that was planned to be up at that spot all along? Or, if perhaps someone at said station read this and went "Oh $&!*"
 
Zeke_Terry said:
NinjaBoot said:
There is a sign @ the door of the Southern Women's Show that is identical to the sign @ the booth. It is located at the door before you have to pay to get in.
I saw it w/me own eyes.
The whole "no purchase necessary" wins again!
Click to expand...


hmmmm...I wonder if that was planned to be up at that spot all along? Or, if perhaps someone at said station read this and went "Oh $&!*"
Click to expand...

Actually, we know about the "lottery law" and put the sign up front to begin with. Glad someone saw it. We do contests like this a lot but there is always another way to enter that doesn't require you to pay to get in. Just like Coke Rewards!
-BR
 
Hey BR -

Not trying to throw you under the bus, but could I ask what the alternate method of entry was? Also - did you have a written copy of the sweepstakes rules available online or at your studio?

If the above exists, and the written rules satisfy T.C.A. requirements, good for you. Because the radio industry executed such idea, I tend to be skeptical. If I am right, you should pop in on your GM and bring to their attention about previous mentioned legalities and the significant risk of doing these types of promotions on the fly. You don't want to piss off the wrong person, get the station sued, legal fees to be removed from your cluster's P&L and bodies fired to make up for the expense.
 
save yourself said:
Hey BR -

Not trying to throw you under the bus, but could I ask what the alternate method of entry was? Also - did you have a written copy of the sweepstakes rules available online or at your studio?
Click to expand...

Wasn't it already mentioned that the way to skirt the Consideration part of a lottery was to post the Secret Song at the front of the show, making it not necessary to purchase an admission (aka "No Purchase Necessary)?

...though in this age, with the gas prices as they are, were I a litigious sort, I'd argue that having someone drive to the show just to get the info would qualify as Consideration.
 
Bird -

I was unaware the song title was posted on the sign at the front door until reading your post.

As for consideration involving gas, that argument could be made. There is some case law that exists indicating the cost of a stamp to mail in for a free entry constitutes consideration; although not in TN.

It is hard to eliminate risk in sweepstakes.
 
radiosaur said:
Didn't the law at one time say the contestant could not expend any money or 'effort"?
Click to expand...

i think dialing the phone is an effort
 
The person that taught me about what constituted a lottery was Dr. Bob McDowell....

*pause for thought*

...anyway, it was him that told me that when it came down to it, church bingo nights were illegal because they were lotteries:

Prize: Whatever prizes would be awarded through the bingo contests
Chance: The bingo
Consideration: The admission fee

But those have generally been allowed because of the context of the event (for charity or whatever). So there is an element of contextual consideration.
 
Status
This thread has been closed due to inactivity. You can create a new thread to discuss this topic.


Back
Top Bottom