From 1995 to 2001, McDonald’s, the famous fastfood chain, sponsored promotional games includin “Monopoly Games at McDonald’s,” “The Deluxe Monopoly Game,” and “Who Wants to Be a Millionaire?” For each of these promotional games, McDonald’s conducted an extensive marketing and advertising campaign through which it represented that all customers had a fair and equal chance to win and it specified the odds of winning. However, the FBI investigated McDonald’s based upon claims that the game pieces required to win the high-value, “million-dollar” prizes were compromised and were being diverted to friends and family of personnel who had access to these pieces. Yet throughout this investigation, and even after individuals pleaded guilty to conspiracy charges related to the diversionary practices, McDonald’s continued its advertising practices. Phoenix, a Burger King franchisee, sued under the Consumer Fraud Act (CFA), claiming that the advertisements stating everyone has a fair and equal chance to win are false and deceptive.

CASE QUESTIONS

1. Does Phoenix have a claim under the Consumer Fraud Act? Why or why not?

2. Are there any other factors affecting whether or not Phoenix has a claim?