How to Avoid Legal Trouble When Creating Sweepstakes or Contest

Sweeppea — Tue, 12 Jan 2021 09:03:00 +0000

Avoiding legal trouble when running a sweepstakes or contest can be tricky as there are federal, state and even local laws that your promotion must comply with. The key to running a successful sweepstakes promotion is to make sure that you have all of these concerns covered!

Before your sweepstakes launches, make sure to review the following:

Official Rules and Abbreviated Rules

The official rules and abbreviated rules will define the rules of your promotion. Make sure that you have covered everything that is required to run a sweepstakes in every jurisdiction where your promotion will be valid. Make sure to also mention where your promotion is void (e.g. “void where prohibited”).

Also watch:

As Sweepstakes Administrators we can help create Official Rules for your promotion.

See hundreds of examples (right here) of Official Rules at our Official Rules Center.

Registration and Bonding

If you plan to offer high-value prizes (worth more than $5,000), namely in the states of New York, Florida, and Rhode Island, you may be required to register and bond your promotion before your sweepstakes launches.

As Sweepstakes Administrators we can help provide the services needed to bond and register your sweepstakes.

Winner Affidavit and Liability Releases

These are the documents that your winners will have to complete that confirm their eligibility to win the prizes. Furthermore, they also release your company from liability in regards to liability resulting from sweepstakes participation, prize claims or prize use or misuse.

Compliance With State Alcohol Boards

If your promotion is sponsored by an alcohol brand, you are required to register your promotion and ensure compliance with 7 state alcohol boards.

Alabama (AL), Indiana (IN), Maine (ME), Maryland (MD), North Carolina (NC), Vermont (VT) and West Virginia (WV) are the 7 states that require sweepstakes approval if printed ads will be placed in stores.

Who Needs Abbreviated Rules for Their Text-to-Win Sweepstakes? Alcohol Companies and Others

Industry Compliance

There may also be additional industry compliance concerns if the sponsor of your promotion is in an industry with significant regulation including the finance, medical, tobacco or firearms industries.

Indemnification and Insurance

It may be necessary to obtain insurance for your promotion in order to protect your business against lawsuits from sweepstakes entrants and other parties.

Compliance With Social Media Terms of Service

Social media platforms, such as Facebook, Instagram, and Pinterest, all have their own rules when it comes to sweepstakes and contests advertised on their platforms. You’ll need to make sure that your sweepstakes complies with their rules to avoid having your promotion shut down.

Request Your Sweepstakes Legal Review to Avoid Legal Trouble

A full-service sweepstakes management company will provide the services that you need to ensure that your sweepstakes is ready to launch. All legal compliance matters, including filing of the required paperwork for registration and bonding, will be handled as required by law.

Need help with sweepstakes or contest management? Call 305-505-5393 or email us with your questions.

The post How to Avoid Legal Trouble When Creating Sweepstakes or Contest appeared first on Sweeppea Blog.

How to Include Sweepstakes Rules in Your Social Media Campaigns

Sweeppea — Tue, 07 Jul 2020 07:48:00 +0000

If you’re running a sweepstakes on Facebook or Instagram your sweepstakes promotions must include the abbreviated and full sweepstakes rules. Both abbreviated rules and a link to the full sweepstakes rules are required in order for your sweepstakes to comply with Facebook’s and Instagram’s Terms of Service.

Here is the scoop on where and how to include your sweepstakes rules.

Abbreviated Rules in Every Post

When you post to Facebook or Instagram about your sweepstakes, every post should include a form of abbreviated rules. This ensures that your entrants are aware of the rules that they are bound by every time they engage with one of your sweepstakes-related posts.

Here are the specifics of what to include in those abbreviated rules and how they benefit your promotion:

1. Sweepstakes End Date

Mentioning the end date of your sweepstakes lets entrants know how much time is left to participate in your campaign. Not only is this important for complying with Facebook and Instagram TOS, mentioning the sweepstakes also creates a sense of urgency among entrants leading them to take immediate action on your promotion.

2. Winner Selection Date

Since there may be a small gap of 1 or 2 weeks between when you end your sweepstakes and when you will select the winner, make sure that your sweepstakes abbreviated rules mention the exact date on when the winner(s) will be announced. By doing this, more entrants will check back on their own to see if they won. This may also make it easier for you to reach the winner to deliver the sweepstakes prize.

3. Contact Information

Facebook and Instagram do not permit you to run sweepstakes that make no mention of the actual sponsor of the sweepstakes. As a result, your abbreviated rules should always include contact information, such as the name of your company, mailing address, phone number, and email address. This also makes it easier for entrants to get in touch with you once the promotion ends in the event that they’ve won but missed your winner announcement.

4. Disclaimer

Make sure to include a disclaimer in your abbreviated rules that your sweepstakes is not sponsored or endorsed by Facebook or Instagram. This is specifically required by both social media platforms’ terms and conditions.

Always Link to Full Official Rules

Finally, at the end of your abbreviated rules, include a link to or reference to (if links are not allowed in posts) where entrants can view the full official rules. Abbreviated rules are only intended to provide an overview of the most important aspects of the official rules. Always advise entrants to review the full official rules before entry.