Consumer Law Library

Advisory opinion letter to Mr. Shea

Topics: Advertising

77 F.T.C. 1762 · May 19, 1970 ·

source volume section (77 F.T.C. 1762)

Text is machine-OCR of the printed volume and may contain errors. Advisory opinions are the Commission's views on proposed conduct, not binding orders.

Dear Mr. Shea:

This letter is in lieu of our letters of May 11 and 21, 1970, requesting on behalf of Marketing Action Group, Inc. (MAG), a Delaware corporation, an advisory opinion of the Federal Trade Commission in regard to proposed promotion plan of MAG. A detailed plan of the proposed program is set forth in the memorandum which was enclosed with the May 11th letter.

The proposed program of MAG is not currently being employed by MAG and is not the subject of any pending investigation or other proceeding by the Federal Trade Commissicn, or by any other agency of the United States Government, or of any State or local government, except that under date of May 19, 1970, it was submitted to the mailability division of the Post Office Department for its approval under the provisions of that Department.

If the propesed plan is approved by the Federal Trade Commission, thereafter, at such time as MAG concludes negotiations for, but prior to, its implementation, MAG will furnish the public, through an advertising program and the promotion rules, with data pertaining to (i) the geographic area to be covered by, and the total number of retail outlets to participate in, the promotion; (i1) the procedure to be followed to insure full disclosure of information pertaining to prizes and odds of winning; and (iii) the scheduled termination date. If the Commission approves the proposed plan, AIAG will maintain a record keeping system which would demonstrate that mixing, distributien, and dispersal were dene totally and solely on a random basis. Upon the conclusicn of the promotion, MAG will furnish the Commission, and also post clearly and conspicuously in each retail cutlet which participated, (1) a complete list of the names and addresses of the winners of each prize and the amount or value of the prizes won by cach; (ii) the total number of promotion pieces distributed; (ili) the total number of prizes in each category or denomination which were made available and (iv) the total number of prizes in each category or denomination which were awarded.