The Maine legislature recently amended the state's charitable solicitation law, eliminating onerous requirements placed on for-profit companies engaging in sales promotions with charitable organizations. The amended law will become effective on October 9, 2013.

Prior to the amendments, the Maine law required that for-profit businesses conducting fund-raisers for charities that raised more than $10,000 in a calendar year obtain a commercial co-venturer (CCV) license from the state. The law also required CCVs to:

The recent amendments eliminated all of the above requirements for CCVs. However, other Maine state laws regulating deceptive trade practices and false advertising will still apply to for-profit companies engaging in cause marketing. In addition, the amended law continues to provide oversight of charitable organizations and their fund-raising activities.

Many states regulate cause marketing ventures to protect consumers from false or misleading sales promotions and ensure that the designated charity actually receives the share of the proceeds that the CCV commits to donating. Companies engaging in cause-related marketing should familiarize themselves with the laws of the jurisdiction or jurisdictions in which the marketing activities will take place.

For more information on cause-related marketing, see Cause-Related Marketing by For-Profit Companies Checklist.