Potential Violations of Sweepstakes Laws in Reese's $25,000 Promotion

17 Oct, 2023

Potential Violations of Sweepstakes Laws in Reese's $25,000 Promotion

Reese's, the beloved peanut butter cup brand, may find itself in hot water for its latest sweepstakes promotion, currently featured on packs of their iconic treats. The promotion on two-cup packages prominently displays the enticing phrase "You could win $25,000," accompanied by the smaller print, "See details inside." However, it's only upon opening the package that consumers discover a crucial detail: no purchase is necessary to enter the sweepstakes.

This controversial promotion was first brought to light by Edgar Dworsky, a consumer advocate and former assistant attorney general in Massachusetts who operates the Consumer World website. The legality of sweepstakes primarily falls under state laws, which mandate that no purchase should be required for participation. A promotion that demands a purchase is classified as a lottery, subject to distinct rules and regulations.

In addition to state laws, three federal agencies hold sway over sweepstakes, each with specific regulations based on the nature of the promotion. The Federal Trade Commission (FTC) ,the U.S. Postal Service, and the Federal Communications Commission, all play roles in enforcing these laws. The Postal Service, for instance, insists that mailed sweepstakes offers must clearly state that no purchase is necessary. While the FTC doesn't regulate sweepstakes directly, it enforces broader laws prohibiting "unfair and deceptive acts."

The Hershey Co., the Pennsylvania-based candy manufacturer that owns the Reese's brand, responded to the concerns, stating that their website contains comprehensive details of the promotion. They also mentioned that some packages feature QR codes that link consumers to additional information. Hershey affirmed its commitment to ensuring compliance with all regulations, saying, "As with all of our promotions, we place great care and diligence to ensure they are compliant with all regulations."

Furthermore, the company indicated that in-store displays include abbreviated rules for the sweepstakes, outlining how to participate without making a purchase. However, Dworsky's investigation found that many candy displays across multiple states, such as California, Virginia, and Washington, lacked such signage.

An Associated Press reporter purchased Reese's packages at a Michigan drugstore, only to discover that they didn't contain QR codes, and the store had no signage explaining the promotion.

The FTC, on the other hand, declined to comment on the practices of specific companies outside of an official investigation, neither confirming nor denying any ongoing inquiries into Hershey.

Dworsky also pointed out that Reese's had previously run a similar promotion earlier in the year, which ended in April and featured the same packaging. Despite the sweepstakes code being expired, some of these packages are still available for purchase, raising concerns that the packaging might mislead consumers into thinking they need to make a purchase to enter.

In summary, Dworsky emphasized, "No payment should be required for participation. It is imperative to consider recalling all these packages." The future of Reese's in light of this sweepstakes controversy remains uncertain as legal scrutiny escalates.