In the world of sweepstakes, Equal Dignity (also known as the “Equal Dignity Rule”) is a legal principle ensuring that people who enter for free have the same chance of winning as those who pay.
Because “paying to enter” a game of chance constitutes a lottery—which is illegal for private businesses to run—companies must provide an Alternative Method of Entry (AMOE). The Equal Dignity Rule dictates that this free entry method cannot be “lesser” than the paid method, as explained within the Key Components below.
The Key Components of Equal Dignity
To remain legally compliant, a sweepstakes must treat every entry (with or without a purchase) with the same level of respect across these four areas:
1. Equal Odds
A free entry must have the exact same mathematical probability of winning as an entry gained through a purchase. You cannot have a “paid pool” and a “free pool” of prizes where the paid pool has better items or higher odds.
2. Equal Prizes
Winners chosen via the free entry method must be eligible for the exact same prizes as winners who purchased a product. You cannot restrict the “Grand Prize” to customers only.
3. Equal Convenience
While the methods of entry can be different (e.g., buying a soda vs. mailing an entry), the free method cannot be designed to be intentionally arduous or hidden.
4. Equal Duration
The free entry period must start and end at the same time as the paid entry period. You cannot stop accepting mail-in entries a week before the product-purchase deadline.
How it Works in Practice
If a company violates the Equal Dignity Rule, they are technically running an unlicensed lottery. This can lead to:
- Heavy fines from the FTC or state Attorneys General.
- Lawsuits from participants who feel the game was “rigged.”
- Being barred from running future promotions.
This is why many major brands hire independent agencies to oversee the drawing process. Experienced agencies such as Marden-Kane ensure that the “stack” of mail-in envelopes and the database of digital purchases are treated as one unified pool during the winner selection process.
Which is also why you should always see “No Purchase Necessary” in the disclaimers and rules for a compliant sweepstakes, along with instructions on how to enter without making a purchase.
To be sure that you are following all the rules when running your next sweepstakes, contact us at Marden-Kane.