A POSITIVE sweepstakes article! Yay!
WinningWays
send this to the proper authorities? :-)
Consumers Understand Sweepstakes, Associations Affirm; Four out of Five
Entries Do Not Accompany an Order
INDIANAPOLIS, Feb. 24 /PRNewswire/ -- A coalition of trade organizations
representing businesses that use sweepstakes asserted that American
consumers enjoy sweepstakes, find them fair, fun and free, and as many as
four in five entries contain no product purchases.
``The vast majority of sweepstakes respondents understand the conditions
under which sweepstakes operate,' said Robert Sherman, general counsel,
Direct Marketing Association (DMA). ``They know that they are not
necessarily a winner, and they are aware that no purchase or any other
consideration is
necessary to win. This is indicated by the fact that the majority of
respondents to legitimate sweepstakes do not place an order with their
entry.'
Sherman was part of an association panel that made a unified presentation
during a public hearing on sweepstakes held by the Indiana Office of
Attorney General on Feb. 24. Other association representatives included
Michael Pashby, executive vice president of the Magazine Publishers of
America (MPA), and Linda Goldstein, chairman emeritus for the Promotion
Marketing Association (PMA).
Testifying for DMA, MPA and PMA, the panel presented other key points about
sweepstakes and their use by businesses and consumers:
-- As many as 8 in 10 American households are offered the opportunity to
enter sweepstakes, and as much as 29 percent of the public has taken
advantage of the opportunity.
-- Sweepstakes are widely utilized by a variety of businesses. In fact, as
many as 73 percent of all American companies that use promotions utilize
sweepstakes.
-- Businesses understand that a very small number of consumers who respond
to promotional offers may be confused, and the business community is
committed to finding solutions to address this problem. Sweepstakes
companies are working
to reach out to help these consumers, and participating with consumer
groups to provide an added level of protection.
-- The associations are committed to strong industry self-regulation
programs to ensure the highest standard of consumer satisfaction and trust.
-- Businesses are committed to cooperating with Congress, the Postal
Service and the states to develop appropriate, effective approaches,
including legislation, to stop fraud and deception, while enabling business
to continue to serve customers and consumers.
``Sweepstakes are not an industry -- as some would portray it. Banking is
an industry, magazines and book publishing are industries, beverages and
food are industries -- and they all use sweepstakes as a marketing tool, to
draw attention to the product offer and distinguish it from the
competition,' Goldstein said.
Goldstein and Sherman outlined the associations' positions regarding
recommended elements of sweepstakes legislation. These elements include
provisions that:
-- The ``no purchase is necessary' statement is easy to find, read and
understand
-- Marketers may not represent that a purchase is required in order to
enter, or that it will give an entrant a better chance of winning.
-- There is clear disclosure of all material terms and conditions of the
offer, including odds, and the nature and value of prizes.
-- All disclaimer language must be clear and conspicuous.
-- Marketers cannot represent that the recipient has won when that is not
the case.
``Long-term customer relations keeps business in business,' said Michael
Pashby, executive vice president, MPA. ``Publishers need to reach consumers
who are interested in the magazine and will continue to buy it year after
year. It would be financial suicide to solicit subscribers through the use
of deception.'
Pashby asserted that magazine publishers target consumers as potential
subscribers by their affinity for particular products and subject
categories.
``We don't target older Americans,' Pashby said. ``But that doesn't mean
they don't enjoy sweepstakes as much as everyone else. Older Americans
should not be precluded from receiving sweepstakes or other promotional
opportunities -- or from gaining the convenience and security of shopping
from home.'
Sherman, speaking for the associations, stated that effective
self-regulatory practices of associations and individual companies,
combined with greater consumer education and coordination with consumer
groups, can provide the means to identify and reach those few consumers who
may be confused about sweepstakes offers.
Susan
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Susan Donahue, Publisher
Winning Ways Sweepstakes Newsletter
http://www.onlinesweeps.com
Free sample issue on our Web site!
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