Advisory opinion letter to Mr. Dosek: the procedure outlined above is acceptable

First Attahment

March 8, 1977

Dear Mr. Dosek:

This request for a staff advisory letter is submitted on behalf of Glendinning Companies, Inc. Glendinning is a marketer of game of chance promotions utilized by food retailers and others in connection with advertising their goods and services. On January 12, 1977, approximately 293 retail stores affiliated with Malone and Hyde commenced a thirteen weeks game promotion marketed by Glendinning. The 293 stores are located in the states of Alabama, Arkansas, Indiana, IIinois, Kentucky, Louisiana, Mississippi Tennessee, Texas, Virginia and West Virginia. The Malone and Hyde stores are grouped into divisions for purposes of organization. The 293 stores now engaged in the game promotions comprise five distinct Malone and Hyde divisions.

Glendinning has recently been notified that some, but not all, of the five divisions wish to renew the game promotion for an additional thirteen weeks when the original promotion terminates in Apri1. Of course, this means that the promotion will be somewhat sma!!er during the contemplated second run. The odds of winning each separate prize wi!! remain exactly the same but the total number of tickets and the total number of prizes will diminish in proportion to the diminished retail store participants.

It is important to rcalize that each of the divisions of Malone and Hyde are geographica!!y distinct and separate. The stores in each division prepare and disseminate their own advertising, thus consumers in one division do not see advertising disseminated in another division or divisions. Thus, there is absolutely no chance of consumer confusion by reason of the fact that one or more of the five divisions may decide not to renew the game for an additional thirteen weeks. In compliance with the Trade Regulation rule, Glendinning and Malone and Hydc have been mixing game chances and making the requisite disclosures over the entire eleven state area encompassed by the Malone and Hyde divisions. They will fo!!ow the same procedure during the second run. The new advertising will properly disclose the new diminished area in which the game will bc played. Glendinning requests advice as to whether the procedure outlined above is acceptable. Of course all provisions of the Trade Regulation 666 FEDERAL TRADE COMMISSIO DECISIONS

89 F.

rule wi!! be scrupulously fo!!owed. Time is of the essence in this request since advance orders and commitments for the new tickets and game material must be placed within the next few weeks.

Sincerely,