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Promotion Laws by State

In the United States, promotion laws vary by state but are universally bound by the federal FTC Guidelines. To legally run a sweepstakes, you must provide a free alternate method of entry (AMOE), so you do not have an illegal lottery. State laws enforce different rules based on the size of the prize and whether they involve retail entry.

Before you run a promotion in the United States, you might want to check sweepstakes or contest laws by state. Some states have more vigorous laws regulating sweepstakes and contests and you can’t claim you didn’t know what you didn’t know after the fact – there may be big fines for non-compliance.

US state map - contest laws by state

Here is a guide to promotion laws and restrictions per state for your reference:

Alabama
Indiana
Maine
Vermont
Contests and sweepstakes in these States are subject to general promotion law and have no additional legal requirements specific to the state unless the promotion involves alcoholic beverages.

For alcoholic beverage based sweepstakes and contests in these States, the state alcohol control board must pre-approve the promotion as submitted on a prescribed form including official rules and advertising materials.

Arizona Sweepstakes in Arizona are subject to general promotion law and have no additional legal requirements specific to the state. Certain registrations are required for amusement gambling contests.
California For contests and sweepstakes in California, a prize winner cannot be required to pay or purchase a product in order to claim their prize.

Additionally, sweepstakes and contest promotions in support of alcoholic beverages cannot condition entry on visiting a licensed premise and all alcohol-beverage sweepstakes must be open to residents of the entire state.

In addition to the above, contests and sweepstakes in California are subject to general promotion law.

Colorado Contests and sweepstakes offered via mailing are closely regulated. Certain comprehensive disclosures must be made in a prescribed format, including clearly advising the recipient of the mailing that he/she has not yet won, that a purchase or payment is not required and will not increase his/her chances of winning, the value of each prize and the odds of winning in a stipulated format.

In addition to the above, contests and sweepstakes in Colorado are subject to general promotion law.

Connecticut Sweepstakes in Connecticut are subject to general promotion law and have no additional legal requirements specific to the state.

Skill-based contests requiring an entry fee for participation, should be looked at on a case-by-case basis. Otherwise, contests are subject to general promotion law.

Florida Sweepstakes and other chance promotions with a prize pool valued at over $5,000 must be registered and bonded. Bond waivers are available for sponsors who have conducted registered promotions in the state for five consecutive years without incident. Filing a certified winners list upon completion of the promotion is required.

In addition to the above, contests and sweepstakes in Florida are subject to general promotion law.

Maine Contests and sweepstakes in Maine are subject to general promotion law and have no additional legal requirements specific to the state unless the promotion is marketed to minors.

For sweepstakes and contests marketed to minors in Maine, sponsors may not collect health-related or personal information from anyone under the age of 18 without first obtaining verifiable consent from a parent or legal guardian.

In Maine, you can advertise a sweepstakes, game, or contest inside the packaging of alcoholic beverages so long as that offer doesn’t make you actually have to purchase an alcoholic beverage.

Maryland
North Dakota
Sweepstakes in these States are subject to general promotion law and have no additional legal requirements specific to the state.

For skill-based contests, a purchase cannot be required in conjunction with entry into the contest.

Massachusetts Contest and sweepstakes in Massachusetts are subject to general promotion law and have no additional legal requirements specific to the state unless the promotion is related to Tobacco.

Tobacco-related promotions are prohibited in Massachusetts.

Michigan Contests and sweepstakes in Michigan are subject to general promotion law.
A store visit (without a purchase or attendance at a sales presentation being required) may be viewed as consideration deeming a chance promotion an illegal lottery.

Tobacco-related promotions are prohibited in Michigan.

New Jersey For contests and sweepstakes in New Jersey, a prize winner cannot be required to pay or purchase a product in order to claim their prize.

In addition to the above, contests and sweepstakes in New Jersey are subject to general promotion law.

New York Sweepstakes and other chance promotions with a prize pool valued at over $5,000 must be registered and bonded. Filing a certified winners list upon completion of the promotion is required.

In addition to the above, contests and sweepstakes in New York are subject to general promotion law.

Ohio Contests and sweepstakes in Ohio are subject to general promotion law.
A store visit (without a purchase or attendance at a sales presentation being required) may be viewed as consideration deeming a chance promotion an illegal lottery.
Pennsylvania Contests and sweepstakes in Pennsylvania are subject to general promotion law.
Alcohol may not be a part of the prize for any sweepstakes or contest promotion.
Pennsylvania also limits the monetary value of prizes. No prize for a single-day competition or contest can exceed $1,000, and any award given over seven days or from a contest of that length cannot exceed $25,000.
Rhode Island Sweepstakes and other chance promotions with a prize pool valued at over $500 must be registered with the state if there is a retail outlet in the state. Bonding is not required.

In addition to the above, contests and sweepstakes in Rhode Island are subject to general promotion law.

Tennessee Sponsors cannot require a winner to sign a publicity release in the state of Tennessee.

Sponsors must submit prize disclosures to the state if a contest or sweepstakes for a sales campaign requires contestants to purchase a product, visit a store, attend a sales presentation, contact a salesperson, or incur a financial obligation of any kind. Additionally, sponsors must obtain written consent for using a winner’s name for promotional advertising or campaigns.

Otherwise, contests and sweepstakes in Tennessee are subject to general promotion law and have no additional legal requirements specific to the state.

Utah Contests and sweepstakes in Utah are subject to general promotion law and have no additional legal requirements specific to the state.

Utah has its own law regarding online promotional campaigns. If a sponsor is offering prizes in the state of Utah, the winner must receive them within 30 days of being named. The Notices Regulation Act further requires that Utah-based sponsors fully disclose a prize notice in the promotion rules and legal disclaimers with a specific font, language, and placement.

The sponsor must also provide the winner with a written prize notice before payment. If the prize is an incentive toward a sales presentation, then the presentation cannot run until after the winner is announced.

In Utah, participants in sweepstakes who win a prize must claim it within 30 days of the sweepstake’s conclusion.

Virginia Contests and sweepstakes in Virginia are subject to general promotion law and have no additional legal requirements specific to the state unless the promotion is related to Tobacco.

Tobacco-related promotions are prohibited in Virginia.

 

For these remaining states, contests and sweepstakes are subject to general promotion law and have no additional legal requirements specific to each state:

Alaska, Arkansas, Delaware, Georgia, Hawaii, Idaho, Illinois, Iowa, Kansas, Kentucky, Louisiana, Minnesota, Mississippi, Missouri, Montana, Nebraska, Nevada, New Hampshire, New Mexico, North Carolina, Oklahoma, Oregon, South Carolina, South Dakota, Washington, West Virginia, Wisconsin, and Wyoming.

 

Marden-Kane is here to help you with your next promotion. Contact us to get started.

To read more posts by Marden-Kane, please visit our main blog page or subscribe to our email list.

 

 

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