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Sweepstakes Risk Assessment for Businesses & Consumers Alike
Running a sweepstakes carries significant risks for both the businesses hosting them and the consumers entering them. These risks have become more complex due to stricter regulatory enforcement and the rise of AI-driven fraud. Here is a breakdown of what makes a sweepstakes “risky” from both perspectives. 1. For Businesses: The “Legal Minefield” If a business makes a mistake in the structure or marketing of a sweepstakes, they can face
Back to School Promotion Planning
There are a lot of shoppers and eyes online in July, August and September. Perfect timing for running online promotions geared toward back-to-school. And now is the perfect time to start planning! Simple Back to School sweepstakes with great prizes is always popular as there is low or no barrier to entry, yet the reward can be high. A social sweepstakes may work for a campus event. User-generated content contests
Regulated Industries and Sweepstakes
Some regulated industries require special disclosures and/or have special legal requirements for running sweepstakes. These regulated industries include alcohol, tobacco, gasoline, dairy, banking, pharmaceuticals, and cause-related marketing. It is absolutely essential to know the laws of these industries, or partner with a promotional marketing firm who works with legal counsel who is familiar with these laws, before undertaking a contest or sweepstakes. Navigating sweepstakes in these sectors requires careful
Determining the Odds of Winning
Preparing an Odds Statement is a legal requirement designed to provide transparency and prevent “deceptive advertising.” Because you cannot predict exactly how many people will enter your sweepstakes, the wording of this statement depends on the type of promotion you are running. Here is how to prepare a compliant odds statement. 1. The Standard “Variable” Odds Statement This is the most common format for general random-draw sweepstakes. Since the total
Federal & State Lottery Laws Explained
According to Federal Lottery Laws, it is illegal to operate a lottery through the mail or over the telephone. The “Standard Lottery Rule” is a legal baseline that defines an illegal lottery. The 3 Elements of an Illegal Lottery – A sweepstakes crosses the line into an illegal lottery if it contains all three of the following: Prize: Something of value is offered. Chance: Winners are chosen randomly. Consideration: Participants
10 Hot Summer Prize Ideas
The weather is getting warmer, which means everyone is starting to make their summer plans! Everyone deserves an escape, something fun to do, or a way to simply cool down. When summer is on everyone’s mind, now is the time to start planning your summer sweepstakes with Marden-Kane. Here are our top 10 picks for the hottest prizes this summer: 1. The Ultimate Family Fun Vacation Who doesn’t love a