Understanding the Legal Background of Prohibited Resale Gift Campaigns: Risks and Psychological Factors Explained

Understanding the Legal Background of Prohibited Resale Gift Campaigns: Risks and Psychological Factors Explained

Question from a reader:
Many people are reselling items that are prohibited from resale after winning them in giveaway campaigns, but I have never heard of anyone actually getting caught. Even though there are rules against resale, is it possible for someone to get caught? Or is the prohibition on resale just for deterrence, and in reality, there is often no
action taken?

Prohibition of Resale in Giveaway Campaigns and Legal Background

In recent years, giveaway campaigns have become quite common in the entertainment industry, often accompanied by rules prohibiting resale. However, there are indeed people who engage in resale, and such actions are rarely viewed as legally problematic. First, let’s examine how the rules against resale are legally positioned. The rules prohibiting resale in giveaway campaigns are primarily based on contract law. By agreeing to the terms of use set by the company, applicants assume rights and obligations based on those terms. Specifically, if the transfer or resale of the prize is prohibited, applicants are expected to comply with those conditions when entering. Therefore, engaging in resale can constitute a breach of contract. However, how such resale actions are legally addressed can vary on a case-by-case basis.

Legal Aspects of Resale Activities

When considering the legal implications of resale activities, there are several points to keep in mind. First, let’s look at what legal measures can be taken if the rules against resale are violated. Generally, companies can take legal action against winners for breach of contract. However, identifying individuals who have actually engaged in resale and gathering evidence is challenging, and filing lawsuits against individuals can be costly and cumbersome, making such actions relatively rare in practice. Additionally, under Japanese law, unauthorized resale may also violate the Act Against Unjustifiable Premiums and Misleading Representations. This law aims to protect consumers by prohibiting false representations and excessive premiums related to prizes and giveaways provided by companies. When resale occurs, it can create a situation where the item gains rarity value, leading to unjustified price inflation. In such cases, legal action may be necessary to protect consumers from harm.

Psychological Analysis of Resale Behavior

The psychological background leading to resale activities goes beyond mere profit-seeking. Various psychological factors influence why people engage in resale. First, the principle of scarcity comes into play. Even though the giveaway campaign prohibits resale, fans who feel they cannot obtain the desired item may resort to resale as an option. Such behavior stems from the psychological desire that “the harder something is to obtain, the more valuable it is.” Furthermore, the desire for social approval is also involved. When someone successfully resells an item, they may receive validation from many people, boosting their self-esteem. Particularly with the rise of social media, sharing that success with others can lead to further approval, thus promoting resale activities.

Ethical Considerations and Industry Regulations

Ethical considerations regarding resale activities are essential. Companies prohibit resale not only to protect fans but also to maintain the overall health of the industry. When resale activities become rampant, the value of products can be distorted, and dedicated fans may suffer disadvantages. Therefore, industry-wide regulations are necessary. For example, when limited merchandise from a music event is resold, fans who purchased legitimately may witness those items being traded at inflated prices, potentially diminishing their motivation. Such cases highlight the need for companies to enforce rules against resale. Moreover, an ethical dilemma arises regarding the social unacceptability of resale. Engaging in resale often infringes on the rights of others, leading to ethical concerns. As a result, fans and industry stakeholders are expected to demonstrate a stance against resale activities.

Contract Law and Privacy Rights Perspective

When the prohibition of resale is based on contract law, understanding the content and conditions of the contract is crucial. Companies must clearly outline the contracts related to their products and services and fulfill their responsibility to explain them to applicants. Applicants are also expected to understand the content and comply with the rules. From the perspective of privacy rights, resale activities pose a risk of personal information leakage. When resellers sell purchased items to others, there is a possibility that the original purchaser’s information may leak, necessitating careful management by companies.

Practical Advice

In light of the rules against resale, here are some practical pieces of advice for fans and industry stakeholders on how to act: 1. Follow the rules: When entering a giveaway, it is essential to check and understand the rules of the campaign before participating. 2. Report: If you notice resale activities, reporting them to the company can help maintain the overall health of the industry. 3. Reassess your values: Focus on enjoying entertainment for its original purpose rather than being swayed by short-term profits from resale. 4. Cooperation among fans: It is also important for legitimate purchasers to cooperate and create an environment that does not encourage resale activities.

Conclusion and Future Outlook

The legal, psychological, and ethical considerations surrounding the prohibition of resale in giveaway campaigns are significant issues in the entertainment industry. While there are regulations based on contract law and the Act Against Unjustifiable Premiums and Misleading Representations, enforcing these against resale is not easy. Additionally, psychological factors and the desire for social approval contribute to the promotion of resale activities. Moving forward, there is a need for stronger regulations across the industry and an increase in awareness among fans. Companies must also seek new initiatives to prevent resale. It is essential for fans and industry stakeholders to collaborate in building a healthy entertainment environment. What do you think about the prohibition of resale? Please feel free to share your opinions and experiences.