The Enclosure MARKETING ACTION GROUP, INC. Retail Merchants’ and Manufacturers’ Merchandising and Promotional…

The Enclosure MARKETING ACTION GROUP, INC.

Retail Merchants’ and Manufacturers’ Merchandising and Promotional Program Marketing Action Group, Inc. (MAG) is engaged in offering patrons of retail merchants and manufacturers (i.e., sponsoring corporations) an opportunity to participate in a merchandising and promotional program to be promoted under a name such as “Winners In Every Outlet” with a predetermined period of duration (which, for the purposes of this memorandum, shall be twelve weeks). Promotion Pieces Under this program, on each visit to a participating outlet, a customer (or other member of the public, since no purchase is necessary) would reeeive a folded, sealed, perforated promotion piece (FPD) advertising the promotion, outlining the rules, and bearing a serial number, the name and address of that particular FPD distributing outlet, and space for the customer’s name and address. The serial number of the FPDs would be impossible to determine until the seal is broken by the customer and all FPDs in each series would be mixed to insure that winning game pieces would be distributed in each outlet on a random basis.

The FPD promotion pieces would be consecutively numbered and would be distributed by the sponsoring corporation or its promotion coordinator to each outlet in lots or series of equal size—the size to depend upon the commercial nature of the sponsor. (For the purposes of this memorandum, it will be assumed that the majority of a sponsor’s outlets would need at least 5,000 promotion pieces to cover their volume and thus each lot delivered to participating outlets would contain 5,000 FPDs numbered one through five thousand and randomly mixed.) Although no two numbers would appear twice in the same lot, for any number that is selected as a possible winner, there may be as many potential claimants for a prize as there are series of 5,000 numbers. ~ Corporaic Section There would be both corporate and in-outlet sections to the promotion. The corporate section would be operated from a sponsoring corporation's head office, would advertise available prizes to be awarded at the end of the promotion period, and would have a judging corporation randomly draw each week of the twelveweek promotion-period one winning FPD number across all participating outlets which would be mailed weekly to each outlet for posting and would remain posted for the duration of the promotion. Customers would check the numbers on the FPDs they hold against the numbers that have been posted. If at any time during the promotion an FPD serial number held by a customer matched one of the posted numbers, such customer would become a potential winner of a prize. In order to qualify for the second drawing which would determine the winner, a holder of a drawn and posted FPD would have to fill in his name and address in the space provided on each FPD and subinit it to a previously announced address within three weeks from the last day of the promotion. The actual prize winners would then be selected by name at the end of the promotion period in a second series of twelve random drawings, one drawing from among the holders of each FPD number previously drawn and posted. (Thus, if the promotion runs for twelve weeks, there would be twelve different winning numbers and a like number of winners selected from the holders of each winning number. ) In-Outlet Section The other element of the promotion would be an in-ontlet section, also operated from corporate headquarters but (a) having a judging corporation randomly draw once, at the end of the twelve-week promotion, one potential winning number across all, and to be posted in, participating outlets for a large in-outlet prize (or prizes, as hereinafter described) which would be awarded at the end of the twelve-week promotion in each outlet (and could vary in each outlet as posted therein), and (b) awarding lower-value instant winner prizes throughout the course of the promotion.

In-Outlet Large Prize A unique aspect of the in-ontlet large prize promotion is that each outlet ean select its own tailored in-outlet prize structure depending upon its particular . needs and the manager’s and/or owner’s preference. The FPDs would advertise that in-outlet large prizes may vary with each outlet and advise customers to check the posted list of available prizes at the outlet where they received their FPD. If only one series of 5,000 FPD promotion pieces were distributed by an outlet, there would be one such large prize worth about $100-$150, with the particular prize to be selected by each outlet. If $10,000 promotion pieces were distributed, an outlet could award two prizes each worth $100-$150 or one prize worth $200-$300. Thus, the number of prizes available need not correspond to the aggregate number of series of FPDs distributed by the outlet, but would be dependent upon its preference.

ADVISORY OPINIONS WITH REQUESTS THEREFOR 1777 In every participating outlet, the winning humber would be posted and the customer with that number would win the outlet’s large prize. If the in-outlet prize structure offers one prize for every series of FPDs distributed, each holder of a winning number would receive a prize. If, on the other hand, the number of prizes does not correspond to the aggregate number. of series of FPDs distributed by the outlet (as where the particular outiet selects one grand prize covering several series of FPDs distributed), there would be a random drawing at the outlet to determine which claimant wins the one prize available, or, if several prizes of varying value are available, which wins a particular prize. All prizes in the previously announced prize structure would thus be awarded, and customers would have three weeks after the last day of the promotion in which to submit their claims.

If the exact winning number fails to appear, the nearest number would be awarded the prize. The rules of the promotion would advise customers that a holder of a number near the winning number should submit his name and address to the dealer from whom he received his FPD so that, should a holder of a winning number fail to appear to claim his prize, such “runner-wp” could be notified to surrender his FPD in exchange for the outlet’s large prize. Should more than one claimant appear as might occur if the holder of the exact winning number does not show up and the holders of the two closest numbers— one lower and one higher—appear to claim the prize, there would be a random drawing at the outlet to decide which claimant wins the prize. In-Outlet Instant Winner In every 5,000 FPDs there would be 100 “Instant Winners” which would be randomly selected by the judging corporation at the start of the promotion and a listing thereof would be posted in each outlet immediately. Such 100 Instant Winner numbers would be the same in every lot (and thus in every outlet) and would remain the same for the duration of the promotion. One or several series of 5,000 FPDs would be delivered to each outlet, depending upon its needs. Upon comparing his FPD number with the list of posted Instant Winners and discovering that he is such a winner, a customer would receive his lowervalue prize immediately by surrendering his FPD to the dealer. All Instant Winner FPD numbers would then be precluded from being potential winning corporate or in-outlet large prize numbers.

Conclusion The MAG program offers a new and unique approach to merchandising and promotional programs. It provides for (1) random selection of winning numbers and (2) actual prize winners and claimants to prizes in every participating outlet without seeding.

In distributing to every participating outlet at least one series of 5,000 FPD promotion pieces, the MAG program guarantees that every outlet which distributes at least one entire lot of 5,000 FPDs would have twelve potential winners of corporate prizes, one in-outlet large prize winner, and 100 Instant Winners. Although every participating outlet would have identical promotional pieces and winning numbers, there would be an assurance of random selection of winners since (1) winning numbers for corporate and in-outlet large prizes would be drawn after distribution of FED promotional pieces to participating outlets and (2) Instant Winner numbers, even though they would necessarily have to be drawn prior to distribution of FPDs, would be sealed and mixed prior to distribution along with all other numbers in a series of 5,000. Thus, there would be no way (without obvious tampering) for anyone to determine a number before the FPD is in the possession of the customer. The MAG program would create, in effect, a separate promotion in each participating outlet, with its own in-outlet prize winners and potential winners of corporate prizes.

Attached hereto are several pages bearing the contents of an FPD. Although there may be some alterations or modifications in the wording and design of the FPDs distributed during the promotion, the following example (not to scale) displays the basic concept.

Each FPD would be folded into thirds (see the three panels indicated on the diagrams) and sealed on all sides such that it would be impossible, in the absence of obvious tampering, to determine the serial number until the seal

is broken by the customer.
Outside of Promotion Piece
Name of Sponsor Company
WINNERS IN EVERY OUTLET
8 OPPORTUNITIES TO WIN
SAVE YOUR NUMBER and COLLECT MORE NUMBERS
WATCH THE POSTED WINNERS LIST
No Purchase Necessary
Name and Address of Sponsor Company
Inside Promotion Piece
Ist Panel
You May Be A Winner__

Your Number Offers You 3 Opportunities to Win An immediate prize from this outlet One of twelve company prizes A prize from this outlet at the completion of this promotion

No Purchase Necessary
Number
2nd Panel
RULES: (See Attached)
Name Address State Zip City Phone
Number

Panel 2 Rules of the “Winners in Every Outlet’ Promotion 1. Save this leaflet with your number shown in the lower right hand corner of panels one and three for the duration of the promotion until (date). 2. Instant winners are now posted at this outlet. If you have one of the instant winner numbers posted, surrender this leaflet to the manager and you will receive your prize now. 3. Hach week of the promotion a new sponsor company prize number will be posted. There will be a total of (000) of these sponsor company prize numbers posted. If you have one or receive one of these numbers, fill in your name and ADVISORY OPINIONS WITH REQUESTS THEREFOR 1779 address in the space provided below and mail it to (address) no later than (date) (21 days after the final number is posted). Hold on to panel number one which also has your number. By (date) (28 days after the final number is posted) there will be (000) random drawings, one from each group of sponsor company prize numbers submitted. Only prize winners will be notified. For a list of winners, send a self-addressed envelope to (address). 4. At the completion of the promotion an Outlet Winner’s number will be posted. If you have this number, fill in your name and address in the space below and submit it to the outlet manager by (date) (21 days after the number is posted). You are the winner of the outlet prize.

5. This promotion is open to all individuals/licensed drivers 18 years of age or above only, except employees of the sponsor company, its subsidiary outlets, manufacturers of promotion materials and families of the foregoing. 6. All entries are subject to verification. Entries are void and will be rejected if not obtained through legitimate channels or if illegible, mutilated, smeared or tampered with or contain printing or other errors. Void where restricted by law. Applicable taxes are the responsibility of winners. (e) Copyright 1970 by the Marketing Action Group, Inc. SAVE YOUR NUMBERS! COLLECT MORE NUMBERS! NO PURCHASE NECESSARY! Location of disclosure of country of origin on packages containing items of vinyl baby apparel imported from Taiwan. (File

No. 713 7004)
Opinion Letter
November 23, 1970
Dear Mr. Spill:

This is in reply to your request for an advisory opinion on behalf of the Rand Rubber Co., as to the proper location of disclosure of the country ov origin on packages containing items of vinyl baby apparel imported from Taiwan.

According to the Commission’s understanding of the facts, your company will label the individual imported items “Made in Taiwan,” and package them in clear poly bags in such a mamner as to clearly and conspicuously disclose the country of forcign origin. The bags used in packaging will contain no writing, such as, “Made in U.S.A.” and the label will be clearly visible through the bag. The Commission has given this matter careful consideration, and is of the view that, based on the material and information available, failure to disclose the country of foreign origin on the clear poly bags

would not be deceptive,
By direction of the Commission.
1789 FEDERAL TRADE COMMISSION DECISIONS
Letter of lvequest

August 18, 1970 Dear Mr. O’Brien:

Would you please be good enough to render or have rendered an opinion on our discussion of today August 13, 1970. Yo wit, we are planning on packing three items made in Taiwan, labeled MADE IN TATWAN on each individual item in a poly bag, with a header stating the name of the store and size of the item and retail price. There will be no printing on the bag, such as, made in U.S.A. As per our discussion, it was your opinion that we need not mention country of origin on the package itself, as long as the goods were clearly labeted and the labels visible through the poly bag.

Awaiting your reply.
Very truly yours,
RAND RUBBER COMPANY, INC.
/8/ Mort Spill