Jun 04 2010
Social Networking Games, Sweepstakes, Promotions and the New Apps: Developing the Fine Line of Legality
Over the last year, social networking sites, most notably those with a developer platform such as Facebook, have become hotbeds for virtual goods purchases, social gaming, sweepstakes and advertising-based promotions. Many of these are based on custom-designed and developed third party applications and widgets, which are veritable revenue drivers for the platform operators. Several months ago Apple modified the terms for its iPhone application development agreement (via an amendment to the iPhone SDK terms) to specifically permit app-based contests and sweepstakes. Specifically, Apple added the following language: “Your Application may include promotional sweepstakes or contest functionality provided that You are the sole sponsor of the promotion and that You and Your Application comply with any applicable laws.” However, questions have arisen regarding the legality of running these games and promotions via such applications and platforms. At their core, these questions focus on the legal distinctions between lotteries, contests and sweepstakes, distinctions that could mean the difference between a highly successful promotion and a high-profile legal headache. Continue Reading »
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