Reese’s may have violated state and federal laws with their recently advertised sweepstakes offer on packs of peanut butter cups, as reported by the AP. The promotion on two-cup packages states “You could win $25,000” and, in smaller print, “See details inside.” However, consumers can only see the fine print after purchasing and opening a package, which states that no purchase is necessary to enter the sweepstakes. Edgar Dworsky, a consumer advocate and former assistant attorney general in Massachusetts, who runs the Consumer World website, first brought attention to the Reese’s contest. He stated, “You never have to pay to play. All these packages should be recalled.”
Hershey Co., the Pennsylvania candy maker that owns the Reese’s brand, did not immediately respond to telephone and email messages on Monday. Sweepstakes are primarily governed by state laws, which require that no purchase is necessary to participate. A contest that requires a purchase is considered a lottery and is subject to different rules. The Federal Trade Commission, the Federal Communications Commission, and the US Postal Service also enforce laws governing sweepstakes based on the medium used. For example, the Postal Service requires mailed sweepstakes offers to clearly state that no purchase is necessary. While the FTC does not specifically govern sweepstakes, it has broad laws prohibiting “unfair and deceptive acts.”
On Monday, the FTC stated that it cannot comment on the practices of specific companies outside of an investigation and would not confirm or deny an investigation against Hershey. Dworsky suggested that signs placed near Reese’s candy displays, explicitly stating that no purchase is necessary, could potentially meet legal requirements. However, a spot check of candy displays in multiple states, including California, Virginia, and Washington, found no such signs. Dworsky also noted that Reese’s had a similar promotion earlier this year, which ended in April and used the same packaging. Some of these packages are still being sold, even though the sweepstakes code has expired. Dworsky expressed concern that the packaging could mislead consumers into thinking they need to make a purchase to enter.
(Read more Hershey stories.)
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