What are the rules for sweepstakes?

Don’t pay to enter a sweepstakes or to collect a prize. Legitimate sweepstakes are free and by chance. It is illegal to require you to buy something or pay to enter or increase your odds of winning. If you receive a notice stating that you’ve won a prize, be mindful of the email address.

What constitutes Consideration in a sweepstakes?

Monetary Consideration refers to the purchase of a product, service or any other entry fee that is required to enter a promotion. Non-Monetary Consideration refers to any substantial time or effort which entrants must expend while entering the promotion, and that benefits the sponsor in some direct way.

Is it illegal to require a purchase to enter a contest?

The official rules must include the statement: “NO PURCHASE OR PAYMENT OF ANY KIND IS NECESSARY TO ENTER OR WIN THIS SWEEPSTAKES.” This statement must appear in a separate paragraph, printed in capital letters in contrasting typeface not smaller than the largest typeface used in the text of the official rules.

Can sweepstakes discriminate?

All eligible participants in the sweepstakes must be treated equally. This prohibits discrimination illegal under federal law, but it also means that an entry from any method should be valued equally.

Do I need to register my sweepstakes?

almost. States require registration and bonding to make sure your sweepstakes was run properly and followed the official rules. As part of this process, they want to know that the prizes were awarded as stated in the official rules. Now that your sweepstakes is over, you must “close” your sweepstakes with the states.

Are sweepstakes regulated?

Because sweepstakes, contests and games are regulated at the state and federal level, it’s important to make sure the promotion is compliant before it is advertised to the public.

Are contests legal?

Contests: are allowed as long as they do not charge a consideration. If the contest includes an element of consideration the sponsor must award the contest prize based on skill and not chance and follow all Prize Promotion Laws prize disclosures.

What is the legal definition of sweepstakes?

Sweepstakes means any game, contest, advertising scheme or plan, or other promotion where consideration is not required for a person to enter to win or become eligible to receive any prize, the determination of which is based upon chance.

What is the difference between a sweepstakes and a contest?

A sweepstakes traditionally involves the entrant filling out a form to enter, and the winner(s) are picked at random. Contests require more effort and are usually judged based on skill or voted on by the public.

Do sweepstakes have to be open to everyone?

Making a purchase to enter a giveaway is known as “consideration.” In the United States, sweepstakes that award prizes by chance cannot require any consideration or they will be in violation of the law. In the United States, only the government can run lotteries and some states prohibit them altogether.

What is the difference between sweepstakes and contests?

Is a sweepstakes a contract?

Kyle-Beth: Every sweepstakes or skill contest should have rules in one form or another. The rules are the contract between the sponsor and the entrants. In addition, because of limited text space on social media, game sponsors often make incomplete disclosure of the rules.