Elon Musk Settles Lawsuits Over $1 Million Daily Voter Giveaway

Image: Illustrative image · U.S. Air Force / Trevor Cokley · Public domain · Source

Elon Musk agreed to settle lawsuits accusing his $1 million daily voter giveaway of being a fraudulent, non-random lottery used to collect personal data.

In 2024, Elon Musk promised to award $1 million daily to a randomly chosen registered voter from a swing state throughout the election year. This initiative sparked legal scrutiny and multiple lawsuits centered on the legality and authenticity of the sweepstakes. Two Arizona residents sued Musk, alleging that the giveaway was fraudulent and not conducted through a random drawing as publicly claimed.

The controversy deepened when Philadelphia's District Attorney filed a suit to halt the giveaway, arguing it constituted an illegal lottery. During a court hearing, Chris Gober, representing Musk's America PAC, contradicted Musk’s statements by acknowledging that the $1 million recipients were predetermined rather than randomly selected. This admission challenged the sweepstakes' legitimacy and betrayed the premise on which participants signed up.

The plaintiffs argued that they would not have submitted the petition required to enter the contest had they known the selection was not random. They further accused Musk and America PAC of exploiting the giveaway as a tactic to collect and potentially sell personal user data without clear limitations or disclosures regarding its use.

Although Musk has now agreed to settle these lawsuits filed in Austin, Texas, the terms of the settlement remain confidential. The episode highlights the legal complexities surrounding politically themed promotions and the handling of personal data in such campaigns, raising questions about transparency and consumer protection in digital political advertising and contests.