Food & Drink International - Spring 2017 Volume 1 - 13

contributing correctly

a powerful marketing tool; examples
of cause-related promotions are everywhere. It is not necessary to look
much further than the "pink" marketing promotions of many products and
breast cancer awareness. Because of
recent partnerships like the one between the National Football League
and the American Cancer Society or
between World Wrestling Entertainment and Susan G. Komen, we see
football teams incorporate pink into
their uniforms and wrestlers slammed
into pink wrestling ropes.
Celebrities wear pink ribbons and
consumer product companies offer
specially marked "pink" packaging for
their products. Even the White House
has "gone pink." As Twitter co-founder Biz Stone remarked in 2014, "The
future of marketing is philanthropy."
But the increased use of cause-related marketing has given rise to increasing concerns that consumers
may be misled. Cause marketing is
now subject to broad Federal Trade
Commission (FTC) and state regulatory oversight that can impose
significant civil penalties, fines and
even criminal sanctions for non-compliance, not to mention bad public
relations outcomes. How does the
successful promotion keep the FTC
at bay and navigate through the most
common of some various "40-plus"
state regulations?

1. Written Contract with the Charitable Organization. Most states
require the business partner to
enter into a written contract
with the charitable organization.
The statutes then provide certain mandatory terms. Examples
of the mandatory terms include
the following:
* Written consent from the charitable organization to use its
name in the campaign;
* The manner in which the name
of the charitable organization
is to be used. This includes
any representation that will
be made to the public as to the
amount of the purchase price

or fee that is to benefit the
charitable organization;
* A provision for final accounting to be given by the business
partner to the nonprofit organization and the date when it is to
be made;
* If applicable, the maximum dollar amount that the charitable
organization will receive; and
* The date when, as well as the
manner in which, the benefit is
to be conferred on the charitable organization.
2. Filing the Contract. In addition to
mandatory contract terms, some
states require that either the business partner or the charitable or-

"Pink" marketing promotions of many products raise breast cancer awareness and is just one example of cause-related marketing. <<

Compliance Guidelines
Regulations can vary from state to
state. There are, however, certain
common themes to be observed in
most states.
food & drink international * spring 2017 volume 1 * www.fooddrink-magazine.com

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Table of Contents for the Digital Edition of Food & Drink International - Spring 2017 Volume 1

Contents
Food & Drink International - Spring 2017 Volume 1 - Cover1
Food & Drink International - Spring 2017 Volume 1 - Cover2
Food & Drink International - Spring 2017 Volume 1 - 1
Food & Drink International - Spring 2017 Volume 1 - Contents
Food & Drink International - Spring 2017 Volume 1 - 3
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Food & Drink International - Spring 2017 Volume 1 - Cover3
Food & Drink International - Spring 2017 Volume 1 - Cover4
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