Did 'American Idol' producers run an illegal lottery?Tue Jul 13, 2010 @ 03:13PM PST A case testing whether viewer contests on "American Idol" and "Deal or No Deal" were "illegal lotteries" has survived a key hurdle. The Ninth Circuit Court of Appeals has vacated a decision to hear an appeal by Fox, Telescope, 19 Entertainment, Fremantle Media and other producers looking to challenge the merits of a class action lawsuit over these contests. The decision sends the case back to the district court to hear more from the contestants, who allege the shows violated California laws on unfair business practices. Each of these shows give viewers the opportunity to win prizes via a text message contest. In the "American Idol Challenge," viewers answer a trivia question. In the "Lucky Case Game," viewers of "Deal or No Deal" choose a briefcase corresponding to the winning number. Under California law, an illegal lottery has three elements: (1) distribution of a prize; (2) based on chance; and (3) an individual has paid a valuable consideration. The plaintiffs, who didn't win the contest, argued that their 99 cent text message fee was that consideration. The defendants moved to dismiss the case because contestants were given a "free option" — to participate in the contest by going to the game show website. They argued there was no consideration. The district court denied the motion to dismiss, and the defendants appealed. The Ninth Circuit heard a tentative appeal, but it now rules that early appeals on legal questions can only be heard if there's "substantial ground for difference of opinion." The appellate panel rules in the decision that the defendants haven't shown that substantial ground, nor have they cited any California law undermining the district court opinion. For now, the contestants will get a chance to pursue victory in, as the Ninth Circuit puts it, "the high-stakes world of class action litigation." |
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