There are a variety of laws and enforcement agencies that regulate consumer and dealer promotions, from the FTC to the IRS to the Postal Service and the SEC. In fact, most experts caution that you should not set up such a promotion without consulting competent legal counsel.

For an introduction to the legal issues involved in using channel or dealer incentives, including a Q&A, see the article “Promotions Law: Your Questions Answered” and the white paper “Tax Considerations for Incentive Programs.”