You can then advertise your sweepstakes on your product, with a package insert, or with in-store displays to encourage a purchase of your product while also letting your customers know about the promotion. Then, a free method of entry must be included on the Official Rules and all promotional materials. The law is clear when it comes to requiring a purchase with your sweepstakes, its not possible unless there is a free method of entry. As a Sweepstakes Company , we encourage our customers to leverage the sweepstakes promotion to create brand awareness and to offer your products or services to your participants after they have entered the sweepstakes.
Need help with sweepstakes or contest management? Call or email us with your questions. For example, some use an alternate entry method, as described above. Others state in the rules that, in order to be eligible to enter, entrants must have a computer and internet service before the beginning of the giveaway begins. And others suggest free ways to get online, such as using free computers at libraries. If selling entries into sweepstakes, or requiring a purchase to enter, is illegal, why do some creative contests charge fees to enter and win?
To find the answer, go back to the three elements of an illegal lottery: consideration, a prize with monetary value, and a random drawing for the winner.
Contests, by their nature, don't draw winners at random. They use a judging system to select the winning entries, so they don't have the three elements required to be an illegal lottery.
Canadian sweepstakes law generally prohibits giveaways where the winners are chosen purely by luck. That's why Canadian sweepstakes have skill-testing questions for their winners.
Many contests are free to enter, meaning that they avoid two out of three of the elements of an illegal lottery. But if the winner is selected by judges or another skill-based manner , a no purchase necessary entry method isn't mandatory. It doesn't do much good to say that legal sweepstakes can't require a purchase if the law isn't enforced. There are a few different governmental agencies in the United States who are responsible for ensuring that sweepstakes really aren't pay-to-play:.
If you find a giveaway that is in violation of the no purchase necessary sweepstakes law, you can report it to the appropriate agencies. Actively scan device characteristics for identification. Use precise geolocation data. Select personalised content. Create a personalised content profile. Measure ad performance. Select basic ads. Create a personalised ads profile. Select personalised ads. Apply market research to generate audience insights.
Measure content performance. Develop and improve products. List of Partners vendors. Sandra Grauschopf. Sandra Grauschopf has been working in the contests industry since She is a passionate sweeper, with tens of thousands of dollars worth of prize wins to her name, and she has been sharing advice about how to be a winner for over a decade.
Other states require that sponsors who charge a fee to enter a contest must register their games with the state. Sponsors of contests also need to provide very clear and understandable descriptions of the criteria that the judges will use to determine the winners. Contest sponsors must also make certain that the decisions made by the judges strictly follow the terms set forth in the rules. It is equally important that the procedure used by the judges is well documented.
Ideally, the sponsor should be able to tell any entrant what score they received from the judges, including their scores in each of the criteria items contained in the rules. Determining the criteria is a key aspect of the contest rules and it should be discussed with the judges during the planning stages of the contest. Because the winners of the contest are chosen based on their skill, knowledge, aptitude or performance, it is virtually impossible to determine what chance the contestants may have to win a prize.
There are certainly other things that sponsors and creators of contests should know, most of which depends on the type and location of the promotion. If you are planning to sponsor or create a contest, it is important to be aware of these items and if in doubt, you should contact a lawyer who is experienced and knowledgeable about contest law.
This post was written by retired Thompson Coburn partner Dale Joerling. If you have any questions about the topics discussed in this post, please contact Thompson Coburn partner Hap Burke. Although we would like to hear from you, we cannot represent you until we know that doing so will not create a conflict of interest. Also, we cannot treat unsolicited information as confidential.
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