Food & Drink International - Spring 2017 Volume 1 - 15
tion will support local recipients
or be disbursed nationally or
internationally. There is no safe
harbor for cause-related marketing communications from substantiating the claims made.
6. Tell the Public How Much Was
Raised. At the conclusion of
each promotion, the business
partner's website should clearly
disclose the amount of the charitable donation generated.
Why Is This Important?
>> Cause-related marketing can be a "win-win-win" solution, but are not without legal problems if missteps occur.
of proceeds"); any caps on the
donation; whether any consumer action is required to trigger a
donation; and the start and end
dates of the promotion. Remember, regulators (and consumers)
favor transparency. And don't
forget the social media - companies conducting cause-related
promotions and using social media should be equally transparent
as in traditional campaigns, and
clearly and prominently disclose
key terms in online marketing.
5. Advertising Claims Must Be
Substantiated. All advertising claims must be substantiated; this rule is applicable to
cause-related marketing communications as well. Advertising
will contain many claims which
will be considered material to
the consumer's purchasing decision, including the percentage
of the donation that reaches the
charity, the nature of the charitable programs that the charity
conducts, and whether the dona-
Properly executed, cause-related
marketing can be a "win-win-win" situation. A good cause promoted with
a nonprofit organization yields social
benefits; the consumer feels good
about making purchases that promote
a worthy cause; and a business gains
both public relations benefits and increased sales for the promoted brand.
But cause-related promotions are
not without substantial legal problems if missteps occur.
Paying attention to legal compliance (with the help of an experienced promotion lawyer), such as
adherence to state statutes and regulations, can avoid problems that will
negate the planned positive benefits
of the promotion.
Dick Wegener is counsel in Faegre
Baker Daniels' food and agriculture
group. He has extensive experience
with food and beverage matters,
including advertising, marketing
and promotional activities, including charitable
promotions, sweepstakes, sponsorships, tie-ins
and cutting-edge marketing techniques such
as word-of-mouth, viral and guerilla.
food & drink international * spring 2017 volume 1 * www.fooddrink-magazine.com