New sweepstakes regulation moved a major step forward today as the Senate Governmental Affairs Committee approved new legislation, as expected. The unanimous voice vote came after marketers under pressure reached agreement with Sen. Susan Collins (R., Maine) and other senators on accepting additional regulation. The legislation would require marketers to increase the number and prominence of statements that "you don't have to buy to win" and "buying doesn't increase the chances of winning," and also requires marketers to run their lists every 45 days against lists of people who don't want sweepstakes. The bill also gives the Postal Service increased authority to halt distribution of sweepstakes violating the law.
Copyright May 1999, Crain Communications Inc.