Rules for Sweepstakes

Rules for Sweepstakes
https://termsfeed.com/?utm_source=Article-284&utm_medium=PDF&utm_campaign=Presentations-PDF

Fall under FTC scrutiny
Need to draft a specialized Terms and Conditions agreement
If your promotions fall under the sweepstakes category, you will:

Here is how to know whether your promotion is a sweepstake and whether it is subject to FTC scrutiny.

What are sweepstakes

What are Sweepstakes
Sweepstakes are a promotion effort where a winner (or winners) receives a prize.
Participants in sweepstakes enter the contest by performing a small task such as sharing social media posts or filling out forms on websites.
Rules for weepstakes

Publishers Clearing House

Chance;A prize; andPayment by the participant.
According to the FTC, a lottery has three elements:
The payment element is the main factor that turns a fun contest into a lottery.
While sweepstakes are legal, lotteries by private entities are not. In the U.S., lotteries must be regulated and managed by state lottery commissions.

Sweepstakes take a different approach by not requiring a payment or purchase to enter.

Corsair (1) runs frequent sweepstakes on its Facebook (2) and Twitter (3) pages.
Corsair
(1) Link to http://www.corsair.com/en-us
(2) Link to https://www.facebook.com/Corsair/
(3) Link to https://twitter.com/Corsair
https://termsfeed.com/?utm_source=Article-284&utm_medium=PDF&utm_campaign=Presentations-PDFhttps://www.facebook.com/Corsair/https://twitter.com/Corsairhttp://www.corsair.com/en-us

Corsair
A Facebook post from Corsair only requires liking the post and their page:

Sweepstakes rules from the FTC

No required payments

The lack of payment is an obvious element that separates sweepstakes from a lottery or worse, a fake prize scheme.
Generally, if you plan on running sweepstakes as a promotion effort, do not require a payment.
No required payments

Advertise with caution

While the FTC does not have any specific requirements (4) on how to spread the word about your sweepstakes on social media, there are recommendations regarding social media.
(4) Link to http://www.ecfr.gov/cgi-bin/text-idx?SID=175a5a6b52c4e424ba2f36c7c2ddbeb3&mc=true&node=pt16.1.255&rgn=div5
https://termsfeed.com/?utm_source=Article-284&utm_medium=PDF&utm_campaign=Presentations-PDFhttp://www.ecfr.gov/cgi-bin/text-idx?SID=175a5a6b52c4e424ba2f36c7c2ddbeb3&mc=true&node=pt16.1.255&rgn=div5

Instragram
First, make it obvious that it is an advertisement.
Learn how to disclose this (5).
(5) Link to https://termsfeed.com/blog/ways-you-can-disclose-endorsements/
https://termsfeed.com/?utm_source=Article-284&utm_medium=PDF&utm_campaign=Presentations-PDFhttps://termsfeed.com/blog/ways-you-can-disclose-endorsements/?utm_source=Article-284&utm_medium=PDF&utm_campaign=Presentations-PDF

Second, be careful of how you allow consumers to promote your sweepstakes.

If theres any compensation or additional sweepstakes entries that result from sharing, liking or getting other people to sign up, that needs to be in your announcement.

Examples

Terms and Conditions for sweepstakes

You need a separate Terms and Conditions agreement for your sweepstakes.
The content of this legal agreement is different enough from your general Terms and Conditions that you use for your website or mobile app.

No Purchase Necessary to Win

The rules of sweepstakes must make this statement clearly.
Most Terms and Conditions agreements for sweepstakes place this at the top and often in all-capital letters.
Theres a good reason why companies make that choice: any inference of a payment or purchase requirement to enter the contest can lead to problems with the FTC.
No Purchase Necessary to Win

Examples - Amazon
Sweepstakes Terms and Conditions NO PURCHASE OR PAYMENT REQUIRED TO ENTER OR WIN.

Examples - Priceline
priceline.com Summer Road Trip SweepstakesOFFICIAL RULES
NO PURCHASE OR TEXT MESSAGING IS NECESSARY TO ENTER OR TO WIN. A PURCHASE OR TEXT MESSAGE DOES NOT IMPROVE ONES CHANCES OF WINNING. STANDARD MESSAGING/DATA RATES,
TERMS AND CONDITIONS WILL APPLY FOR ENTRIES OBTAINED VIA MOBILE PHONE/DEVICE. MAY NOT BE AVAILABLE FROM ALL SERVICE PROVIDERS OR FOR ALL HANDSETS. CHECK WITH YOUR SERVICE PROVIDER FOR DETAILS. VOID IN ALASKA, HAWAII, AND WHERE PROHIBITED BY LAW.

Examples - Corsair
NO PURCHASE IS NECESSARY TO ENTER OR WIN. VOID WHERE PROHIBITED. Terms in these Sweepstakes Terms and Conditions shall serve as the Official Rules for the Sweepstakes.

Entry procedures

Entry procedures
Make the entry procedures to users clear in the Terms and Conditions.

Examples - Amazon

Examples - Corsair
ENTRIES
No use of any use of robotic, automatic, programmed or the like entry methods will be allowed as well as incomplete entries. Entries from persons who are not eligible to win per these official rules will be disqualified.

Entry participation limits

Many companies want to limit sweepstakes participation as it can reduce liability issues and also helps companies avoid the complexities that may be involved offering prizes in some jurisdictions.

Examples - Amazon
You must be an individual legal resident of the 50 United States or the District of Columbia and the older of 18 years of age or the legal age of majority in your state of residenc

Date post:	08-Jan-2017
Category:	Law
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Rules for Sweepstakes

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