The U.K. Advertising Standards Authority (ASA) has upheld a
complaint alleging that an online “instant-win” promotion organized
by Kettle Foods Ltd. was misleading because it required participants to
register before finding out if they had won a prize. According to ASA, the
U.K. Code of Non-broadcast Advertising, Sales Promotion and Direct
Marketing (CAP Code) states that “participants in instant-win promotions
must get their winnings at once or must know immediately what
they have won and how to claim without delay, cost or administrative
barriers.”

Kettle Foods reportedly advertised “instant win prizes” on its potato
chip packages, which featured a unique code with instructions directing
entrants to a website. Before viewing their potential winnings, consumers
were asked to provide identifying information, including full name,
postal code, telephone number, email address, date of birth, and a
chosen password for subsequent visits. As required by law, the company
also offered a “no purchase necessary route” for Republic of Ireland
(ROI) consumers who could use a “mastercode” once per day to enter
the sweepstakes. Because regular participants tended to use the button
intended for free-entry customers, Kettle Foods opted to have all users
provide geographic information through the same process and then
redirect ROI entrants to a different page.

ASA acknowledged these challenges but argued that the promotion
should not have been advertised as an “instant win” sweepstakes because
the information on the chip packages did not indicate any need to enter
consumer information in addition to the code. “We considered that
the requirement to register and enter personal details was significant
information about how to participate, and that its omission was likely
to mislead consumers about the promotion,” concluded ASA. “Because
the promotion referred to ‘instant win prizes’ but included delays and
an administrative barrier, and because it misleadingly implied that
consumers would find out if they had won simply by visiting a website
and entering a code, we concluded that the promotion had breached the
Code.”

 

Issue 578

About The Author

For decades, manufacturers, distributors and retailers at every link in the food chain have come to Shook, Hardy & Bacon to partner with a legal team that understands the issues they face in today's evolving food production industry. Shook attorneys work with some of the world's largest food, beverage and agribusiness companies to establish preventative measures, conduct internal audits, develop public relations strategies, and advance tort reform initiatives.

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