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2015 GNYADA Membership Directory
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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