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Contests and sweepstakes law
While you may think no one is really paying attention, indeed they are and in 2013 the.
But the legal issues related to consumer promotions are a significant consideration as well.
Winters and JoAnn.She quit and filed suit against the company to get her Toyota, alleging breach of contract and fraudulent misrepresentation.While social media has certainly simplified this process, running a giveaway online or offline is not without risk.The Difference Between Legal chance to win super lotto Sweepstakes and Illegal Lotteries: The.S.One Florida Hooters found this out the hard way. .But, the fact is that if you are going to open up your promotion to entrants who reside in other countries you need to comply with the laws of those countries.Lotteries are prize drawings where entrants must pay money to buy a chance to win.You may really want people to sign up for your newsletter or comment or Pin or share but you can not give them more entries, and thus a greater chance of winning, for doing those things than if an entrant just fills out a basic.Because prizes and luck are central to sweepstakes, legitimate sweepstakes usually eliminate the element of consideration.Running a sweepstakes or contest takes more than just creating a fun way to give away prizes to your customer or readers.How to fix it: Create Official Rules.
For example, Florida, New York, and Rhode Island require sweepstakes offering prizes over a certain value to be registered.
This rules out the second element of an illegal lottery: winners chosen by chance.
Note that I used the word sweepstakes and did not include contest.
Furthermore, over the years courts have had to interpret what no purchase necessary means and have expanded it to mean consideration.
Remember to try sponsors' products whenever possible, to be polite and gracious when asking questions about sweepstakes, and to thank them in writing for your wins.Further, although the entry requirements are somewhat relaxed when prizes are earned, not awarded, contests must also be administered within the confines of the law.But in todays digital age, businesses are increasingly going online and using social media to reach a wider audience.Online contests raise more vexing problems, such as whether automated or repetitive electronic submissions will be accepted, how the contest website will detect violations, restrictions on length, size or format of content submitted, compliance with online-data-privacy laws, and compliance with the Can Spam Act.You will also need to specify whether the expenses of the winner's travel guest (e.g., parent or guardian) are part of the prize awarded.This means that it is legal to charge a fee to enter contests or to have an element of consideration that is beneficial to the sponsor (i.e., a recipe that will be used in advertisements for a product).There are advertising guidelines for promoting certain products.If you would like to keep updated on new posts, please consider subscribing via, rSS feed or subscribe through email by using the box in the sidebar.One relatively easy solution to the "illegal lottery" problem is to make the contest one of skill, rather than chance.Lotteries are heavily regulated and are usually only legal if they are run by the government.If your contest involves user-generated content, such as photos, videos or short stories, the rules must contain specific language granting you the necessary rights and licenses to use the content.Unfortunately, the laws related to sweepstakes and contests dont care that youre just trying to be nice and give back to your community.