The Scoop on PromotionsProject Support Team Blog

July 29th, 2009

Am I going 55? How The Speeding Analogy Can Help You Evaluate Business Risk

No matter your position- conservative or otherwise- evaluating business risk scenarios in the promotional world is challenging.

Without a single federal task force regulating Sweepstakes, Games, and Contests, promotional oversight is decentralized and left in the hands of too many groups to list- the USPS (Federal Deceptive Mail Prevention & Enforcement Act), other quasi regulatory federal agencies, along with each state’s Attorney General office and Consumer Protection group, just to name a few.  As a result, fines, penalties and other actions stemming from scrutinized promotions are not consistent or predictable.This reality leaves many organizations feeling vulnerable when trying to make smart choices.  When planning a Promotion, how can you understand and assess implications and risk?

Try this.  Ask yourself, your team, and your partners, “If We Do X, How Fast Are We Going in a 55mph Zone?”  Remember- speedy red cars will attract regulator and consumer attention if they’re going 80 for obvious reasons.  So, if you are taking risky moves and you’re on Fortune’s Top 500 List as opposed to the local Yellow Pages, your organization will get pulled over and enjoy a negative PR splash along with higher penalties.

Get your team involved in this real world evaluation.  No department- creative, advertising, promotions, legal or otherwise- wants to pay the ticket no matter what the fine.  The Speeding Analogy is infamous in our halls and with our Clients- it’s simple, quantifiable, emphasizes accountability, and allows your team to shift gears (no pun intended- can’t help it!) to create solves for legal compliance issues and make informed choices.