Q: In NY, is it legal to offer potential clients a $5,000 reward if we cannot provide a more cost effective solution?
As part of a marketing ploy, my company would like to offer a real $5,000 reward if a potential client can provide a financial bill/statement that my company cannot offer similar service for a cheaper cost. Of coarse, the terms of the service rendered and bill would be specified in the "$5,000 Challenge" terms. The potential customer is not required to buy or sign up for our service to be eligible to receive the award, but it gives us the opportunity to pitch them our alternative service. From my understanding, Section 369-e of the New York General Business Law says that only prizes/rewards in excess of $5,000 have to be registered and regulated. Am I missing something?
A: I am pretty sure that you're referring to a "Fair Trade Law" NY enacted, but the section you quoted pertains to games of chance, not to an offer for a cash reward if you are unable to provide a better deal. As such, it doesn't appear that you would be violating the law by making such an offer. If you didn't actually pay or provide the services then that would be another story.
A: What type of business do you have, and what are the specific terms of the offer? The devil is in the details. More details are necessary to provide a professional analysis of your issue. The best first step is an Initial Consultation with an Attorney. You can read more about me, my credentials, awards, honors, testimonials, and media appearances/ publications on my law practice website, www.AEesq.com. I practice law in CA, NY, MA, and DC in the following areas of law: Business & Contracts, Criminal Defense, Divorce & Child Custody, and Education Law. This answer does not constitute legal advice; make any predictions, guarantees, or warranties; or create any Attorney-Client relationship.
Justia Ask a Lawyer is a forum for consumers to get answers to basic legal questions. Any information sent through Justia Ask a Lawyer is not secure and is done so on a non-confidential basis only.
The use of this website to ask questions or receive answers does not create an attorney–client relationship between you and Justia, or between you and any attorney who receives your information or responds to your questions, nor is it intended to create such a relationship. Additionally, no responses on this forum constitute legal advice, which must be tailored to the specific circumstances of each case. You should not act upon information provided in Justia Ask a Lawyer without seeking professional counsel from an attorney admitted or authorized to practice in your jurisdiction. Justia assumes no responsibility to any person who relies on information contained on or received through this site and disclaims all liability in respect to such information.
Justia cannot guarantee that the information on this website (including any legal information provided by an attorney through this service) is accurate, complete, or up-to-date. While we intend to make every attempt to keep the information on this site current, the owners of and contributors to this site make no claims, promises or guarantees about the accuracy, completeness or adequacy of the information contained in or linked to from this site.
