Advertising Law Tool Kit - Tenth Edition | 2022

22 / Venable Commercial Co-Ventures If a marketer conducts a promotion involving a donation based on the sale or use of a product or service (e.g., $1 of every shoe purchase benefits XYZ charity), the promotion will be subject to a number of state laws regulating commercial co-ventures (CCVs). If the commercial co-venture laws are triggered, the for-profit entity will be required to register as a commercial co-venturer (including, in some cases, obtaining a bond) in up to four states; additional states require submission of a written agreement with the charity. Some state laws mandate that certain provisions be included in the written agreement between the parties to the CCV. Also, all advertising for the CCV promotion must include certain material disclosures; there have been significant attorney general actions in this area that were brought against marketers that made misleading disclosures or omitted key information. Keep in mind that some popular types of charitable promotions may not be CCVs, for example, one-time donations to a charity, or promises that if consumers tweet a certain hashtag, the brand will make a donation to the charity. It may be desirable to explore such structures in planning a charitable promotion. Nonetheless, state CCV and promotional fundraising laws vary, so it is important to plan such promotions carefully, and it is always important to ensure that the disclosures for any charitable promotion are clear, conspicuous, and accurate. Melissa Landau Steinman mlsteinman@Venable.com +1 202.344.4972