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2015 GNYADA Membership Directory

48

or, more importantly, the leak of sensitive information. Employers should consider having procedures in place to

investigate and address potentially damaging posts.While certain laws, e.g. the National Labor Relations Act, may

protect employees for negative comments on the Internet, not all employee posts are protected. Employers should

be prepared to act on those that are not – particularly if the posts contain confidential information.

Sweepstakes

Sweepstakes or “games of chance” contests present additional challenges and are regulated principally by state

laws. In general, a sweepstakes must give consumers the right to enter without making a purchase such as by

mailing in a postcard. Some states (e.g., NewYork and Florida) require bonding for certain consumer sweepstakes.

Make sure the rules are clear about the prizes; ways to enter; the duration of the sweepstakes; when and how

the winners will be determined; and name the dealership as the sponsor of the sweepstakes. Disclose the odds

of winning, or state the odds depend on the

number of entries received. IRS tax reporting is required

for certain winners depending on the value

of the prizes. Consider getting

advice from a competent attorney or

agency

familiar with the laws of the states where

the sweepstakes or contest promotion

will be conducted. For example,

Florida requires a state filing along

with a bond in certain situations

for any consumer sweepstakes offering

prizes totaling more than $5,000, and advertisements

must contain the full material rules for the sweepstakes.

Information provided Courtesy of Dealertrack Technologies 516.547.2242;

www.dealertrack.com