A lucrative prize incentive can be the engine for an exciting and socially beneficial innovation competition. Despite the good intentions of the organizer, a lot can go wrong even when the sponsor is a nonprofit. An innovation contest generally promotes the generation of ideas or prototypes for new advancements in an industry. We have worked with many entities that seek to encourage innovation through prize incentives. Such promotions can involve very large prizes, and they can engender a lot of press coverage. Regardless of whether the purpose of the contest is for commercial, educational, or social purposes, a company or organization can still end up in federal court if the contest is not properly structured and conducted.
Continue Reading Personavera v. CHIME: An Innovation Contest Goes Sour

Last week, Pinterest updated its Acceptable Use Policy, which governs its policies for conducting a contest and sweepstakes. Pinterest policy previously:

  • Prohibited brands from running a sweepstakes where each Pin, board, like, or follow represents an entry;
  • Prohibited brands from requiring entrants to Pin from a selection; or
  • Prohibited brands from requiring a minimum number