Billionaire Elon Musk’s America PAC has been warned by the US Justice Department that its US$1 million daily giveaways to registered voters may violate federal law, US media reported on Wednesday.
Musk, the world’s richest man, announced the contest on Saturday in Pennsylvania, one of the seven “swing states” that are likely to determine who will become the next US president – Donald Trump or Kamala Harris.
Musk, a Trump supporter, announced plans to give US$1 million to one registered voter in a swing state every day until the US election on November 5.
CNN and 24sight News said the letter from the Justice Department to Musk’s political action committee warns that the US$1 million sweepstakes may violate federal law, which prohibits paying people to register to vote.
The Justice Department declined to comment.
The winners of the contest are chosen at random but they must be registered voters. They are also required to sign a petition that supports “free speech and the right to bear arms”.