The bankruptcy filing on Monday said Tattered Cover owes its creditors, numbering in the hundreds, between $1 million and $10 million.
Only after someone has opened the package can they see the small print: no purchase is necessary to enter the sweepstakes.Two packages of Reese's candy featuring a sweepstakes ad are shown in Ann Arbor, MI., on Friday, Oct. 13, 2023. 3:06 PM MDT October 16, 2023
The Reese's contest was first reported Monday by Edgar Dworsky, a consumer advocate and former assistant attorney general in Massachusetts, who runs the Consumer World website. Three federal agencies — Federal Trade Commission, the Federal Communications Commission and the U.S. Postal Service — also enforce laws governing sweepstakes depending on the medium. The Postal Service requires mailed sweepstakes offers to make clear that no purchase is necessary, for example. The FTC doesn't govern sweepstakes specifically, but has broad laws prohibiting “unfair and deceptive acts.
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