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Wednesday, May 25, 2011

Busted Housing Market Ensnares Clear Channel

If you promote a contest giveaway for a client and the client fails to deliver are you liable? That's what Clear Channel is about to find out. In 2007 Cape Coral Florida resident Paula Hedberg won a $300,000 home in Lehigh Acres Florida from a developer who was building in the Copperhead Golf & Country Club. Apparently the contest rules also state that if the winner would be given a lump sum of $150,000 if not the house. Four years after winning the contest Hedberg has received nothing, the developer went bust and this one is headed to court if mediation doesn't resolve it before August.

According to the News-Press in Fort Myers the Clear Channel stations in Fort Myers promoted the giveaway along with a television station. Hedberg has named Clear Channel, Copperhead and Journal, the owner of the TV station. The paper says Hedberg is alleging  Clear Channel and Journal are liable under state law governing contests, which says it's illegal for any "operator" of a contest to fail to award a prize that's been promised. Operator is defined in the law as, "any person, firm, corporation, or association or agent or employee thereof who promotes, operates, or conducts a game promotion, except any charitable nonprofit organization."

A Company spokesman told the paper "Clear Channel has asked the court to enforce the contest rules as written and confirm that Clear Channel was not responsible for providing the prize."

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