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Giveaways serve as effective tools for influencers and celebrities to boost their visibility, engage with fans and expand their follower base. But for those following the recent giveaway that sparked mayhem in the streets of New York City (NYC), it is evident that preparation prior to live-event prize promotions is critical.

So, how did an innocent giveaway intended to show appreciation to fans trigger a level 4 disaster response from the New York Police Department (NYPD)?

A popular live-streamer with a collective social media following of over 20 million took to social media to announce he will be giving away free PlayStation 5 consoles, gift cards and other items in NYC’s Union Square Park at 4 p.m. on Aug. 5. By 1 p.m., crowds had already started gathering at Union Square Park. The NYPD soon became aware of the giveaway, but by 3 p.m., more than 2,000 individuals had already gathered at Union Square Park. Despite the efforts of roughly 1000 police officers, chaos nonetheless erupted. The ensuing chaos saw people climbing atop vehicles and subway stations, obstructing traffic, setting off fireworks and even engaging in violent behavior. The situation escalated further, culminating in clashes between attendees – many of whom were teenagers – and the NYPD. By 5:30 p.m., the event ended with injuries to police officers and civilians and resulted in dozens of arrests. The streamer was ultimately arrested and charged with felony first-degree rioting, as well as a misdemeanor for inciting a riot and unlawful assembly.

This incident serves as a stark reminder that orchestrating live-event prize promotions requires a comprehensive assessment of potential risks and the implementation of responsible planning and coordination with relevant authorities. If done carelessly, a giveaway’s sponsor can be subject to civil and criminal liability.Continue Reading Giveaway promotion oversight: What could possibly go wrong?

The International Alliance for Responsible Drinking (IARD), which represents major global alcohol producers, partnered with leading advertising, public relations and influencer agencies to sign an Influencer Pledge that sets standards and rules for influencers who market alcohol on social channels. The Pledge is meant to prevent influencer alcohol marketing from reaching minors and to encourage influencers to promote responsible drinking. In addition to the Pledge, the companies created a set of five safeguards applicable to influencers that work with alcohol brands.
Continue Reading Joint Commitment: Alcohol Producers and Major Agencies Create Standards for Influencer Alcohol Marketing

The Federal Trade Commission (FTC) has settled with mobile advertiser Tapjoy, Inc. (“Tapjoy”) over allegations that it misled consumers by failing to provide in-game rewards that users earned by completing its advertising offers. According to the FTC’s complaint, Tapjoy offered users in-game virtual currency for completing advertising offers like purchasing products or services, signing…

On November 16, 2020, supermodel Anastassia Khozissova filed a $20 million lawsuit in the New York state court against Ralph Lauren Corp. (“Ralph Lauren”) and HBO for their alleged unauthorized use of her likeness. Ms. Khozissova has been featured in campaigns and runway shows for numerous luxury brands, including Ralph Lauren. The model once shared…

Two recent actions involving sellers and marketers of cannabidiol (CBD) and cannabis prove the “wellness” industry is not always so chill.

Clint Eastwood Sues CBD Companies over False Endorsements

In the first action, Clint Eastwood filed two lawsuits in federal court in Los Angeles against CBD companies and marketers, claiming the companies promoted false news…

Hollywood movie star Reese Witherspoon and her clothing line, Draper James, LLC, have found themselves the subjects of a public relations debacle, and now, a class action after running a promotion for teachers that has gone horribly wrong.

To read more about the implications of advertising and promotion rules and the impact of the California…

Last week, the Los Angeles City Attorney’s office filed a civil lawsuit against KNature Co., Inc. d/b/a Insan Healing, Inc. (Insan), a Los Angeles-based herbal remedy retailer, for attempting to pass off an untested radish paste as an immune-boosting, “must-have product for the protection and prevention” of COVID-19.

The product is made from a combination…

Join Jason Gordon on Wednesday, May 13, 2020, for a live webinar hosted by the FDLI and titled, “Influencers, Social Media Advertising, and Litigation Risks for Food and Dietary Supplement Companies.”

Food and dietary supplement companies are increasingly using influencers and social media to advertise their products. These marketing strategies are even…