June 25, 2007
Suits allege texting games on 'Apprentice,' other TV shows violate lottery rule
According to RCRnews, a hairdresser and a secretary from Georgia, among others, ave filed a class-action lawsuit against "The Apprentice," "Deal or No Deal" and "One vs. 100," alleging the shows' mobile games constitute illegal gambling.
"The suits, which are pending in federal court in Los Angeles, point to the lack of legal clarity when it comes to nascent marketing technologies—and to just how careful media companies and marketers must be to ensure their promotions fall within the law.
The lawsuits attack the games on the grounds that they charge viewers a 99-cent premium text-messaging fee to participate, a violation of what is known as the Standard Lottery Rule. That premium fee is applied on top of the basic text-message fee. The show's producers, the network and the cellphone carrier split the revenue.
... The games, which offer the option of entering for free online, could have gotten around the lottery laws had they offered something of value in return for the 99 cents, according to legal experts.
"It's a serious shot across the bow to some of these promotions," said Joseph Lewczak, an attorney with Davis & Gilbert who specializes in mobile-related legal issues.
"Charging a premium fee for a text message, which provides the entrant with no bona fide product or service, may be deemed illegal," he said. "It is important not to overlook the fact that, though mobile entertainment may be a new and fast-developing medium, this medium is not exempt from the laws that would otherwise apply in the brick-and-mortar world."
The Permanent Link to this page is: http://www.textually.org/textually/archives/2007/06/016411.htm
