Everyone enjoys winning a prize in a sweepstakes because winning requires no skill and it’s easy to enter. Consumers are completely unaware of the legal requirements that a sweepstakes sponsor must follow. It is the responsibility to protect consumers by complying with laws that exist at the Federal, State and local level. Although the laws of each state are generally similar, there are differences, and a sponsor is legally bound to adhere to all of them. US sweepstakes rules also mandate that the sweepstakes be registered in some states when residents of those states are eligible to enter. In addition, rules serve as a contract between the person entering a contest and the company who is operating it.
Official sweepstakes rules must provide information concerning eligibility. Such eligibility rules will include age and residency requirements, defining who may and may not enter. The end date and start date for the sweepstakes must be provided. In addition, most states require a sweepstakes to allow a contestant to enter the sweepstakes without having to make a purchase. The sweepstakes rules should state how many times a single contestant is allowed to enter the sweepstakes, and the name and address of the company or sponsor that is offering the sweepstakes must be included in the rules.
The official sweepstakes rules should clarify any restrictions regarding which groups of people, such as employees of the sponsoring company, are prohibited from entering the contest. The official rules must also state the odds of winning the sweepstakes, and the methods of notifying the winner and of winner selection should be clearly explained. A complete value and description of the sweepstakes prize must be provided to contestants. Contestants must not be required to pay money to enter a sweepstakes because only lotteries are legally allowed to charge for a chance at winning a prize.
The United States Federal Trade Commission can be contacted if anyone suspects that a sweepstakes may be fraudulent. In addition, most states have government offices that can be notified about fraudulent sweepstakes. Sweepstakes must require no skills, and are considered only games of chance or luck.
Sweepstakes promotions are also called “instant-win” promotions. A sweepstakes awards prizes at random at the conclusion of a sweepstakes entry period whereas an instant win version of a chance promotion provides the opportunity to win prizes continuously throughout the promotion entry period. Sweepstakes can be entered by different methods including online, by mail and other methods. In all cases, consumers must, by law, have a way to enter the sweepstakes without having to pay any money. This includes not being required to purchase a sponsor company’s product.
A sweepstakes may also include entries that are a result of a purchase so long as the alternate no purchase method is made available. An example is providing an entry for something like a credit card transaction.
Prizes must be explained to consumers, along with the odds of winning each prize. The value of the prize item must be clearly stated in the official rules. Sweepstakes can offer token prizes of less than a dollar, or have prizes with much higher values. A prize can be a free product, automobile, vacation, cash or many other lucrative items.
The experts at Marden-Kane have vast experience in designing a sweepstakes promotion that conforms to all necessary state and federal legal requirements. Contact the online promotions and sweepstakes experts at Marden-Kane today.
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