The Philadelphia district attorney’s office sued Tesla CEO Elon Musk over his political action committee’s $1 million a day giveaway to registered voters in swing states, alleging it violates consumer protection laws and is designed to interfere in the upcoming Presidential Election.
Under the scheme, voters in swing states could be eligible to win a $1 million daily cash prize up until Election Day if they sign a petition in support of the First and Second Amendment of the Constitution—free speech and gun rights, respectively. Philadelphia District Attorney Lawrence Krasner called for an immediate injunction to stop the America PAC and Musk from operating what he called an “illegal lottery” and from engaging in deceptive practices in the Commonwealth of Pennsylvania. The lawsuit, dated Monday, names both Musk and his America PAC as defendants.
Musk announced the million-dollar prize at a campaign rally earlier this month. For Krasner, it was clear that the sweepstakes amounted to a lottery, which under Pennsylvania law must be regulated by the state. Given that Musk’s giveaway is not, it violates the law, according to legal documents.
“It is indisputably an unlawful lottery,” stated the filing from the Philadelphia County Court of Common Pleas.
The filing also alleges possible violations of consumer protection laws, citing the PAC’s use of “deceptive, vague, or misleading statements that create a likelihood of confusion or misunderstanding.” The DA’s office gave examples such as the sweepstakes not having published a complete set of rules and information regarding consumer privacy guardrails. The suit also accuses the PAC of not selecting its winners at random.
The “America PAC and Musk must be stopped, immediately, before the upcoming Presidential Election on November 5,” the suit reads. “That is because America PAC and Musk hatched their illegal lottery scheme to influence voters in that election.”
America PAC did not respond to a request for comment.
At a Trump campaign event last week, Musk clarified that the prize was not meant as compensation for registering to vote. “It’s really a petition in support of the Constitution of the United States, and in particular, freedom of speech and the right to bear arms,” Musk said.
On Monday, Krasner said it was his office’s responsibility to protect the public from illegal business practices and to safeguard elections. “The Philadelphia District Attorney is charged with protecting the public from public nuisances and unfair trade practices, including illegal lotteries,” Krasner said in a statement. “The DA is also charged with protecting the public from interference with the integrity of elections.”
Musk has been a vocal supporter of former President Donald Trump in the ongoing election. The world’s richest man has campaigned repeatedly with the former president, using his vast wealth to aid with things like grassroots organizing and ad buys. Musk has given the America PAC at least $119 million dollars through early October.
This isn’t the first time the PAC’s $1 million giveaway has drawn attention from government lawyers. Last week the Justice Department sent Musk a letter warning him that the move could be a violation of federal laws.
The America PAC also ran afoul of state officials in North Carolina and Michigan, two swing states. A CNBC investigation found it was improperly collecting information about voters when it promised to register them to vote, but never did. Both states briefly investigated Musk’s PAC, which then updated its website to address the issue.
