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How to Register a Sweepstakes in New York
As you have read in previous blog posts, sometimes you have to register your sweepstakes with certain states if the approximate retail value “ARV” of all prizes offered is over a certain amount. The states of New York and Florida require registration and bonding when the total ARV exceeds $5,000; and the state of Rhode Island requires registration only if the ARV is over $500. You do not have
How Do I Know if a Sweepstakes is Legitimate?
To determine if a sweepstakes is legitimate, you have to look past the flashy “Win Big!” graphics and examine the underlying infrastructure. Real promotions are governed by strict legal frameworks, while scams rely on psychological pressure and your desire for a shortcut. Here is a checklist to help you verify a sweepstakes in seconds: 1. The “Golden Rule” of Sweeping If you have to pay, you didn’t win. This is
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