A sweepstakes is an effective way to promote your brand but first you should know the sweepstakes rules California to ensure that your promotion does not turn into an illegal lottery.

Here is a quick overview of what you should know about sweepstakes rules in California.

California Law and Your Official Rules

When drafting your official rules for your sweepstakes, take care to ensure that the proper language is included and certain terms are avoided. Furthermore, there are also some restrictions on how you can promote your sweepstakes to avoid misrepresentation.

The following items are prohibited per California law:

• Misrepresenting the odds of winning any prize.
• Failing to disclose the exact nature and approximate value of all prizes offered.
• Failing to award and distribute the prizes of the same value and type advertised in your sweepstakes promotions.
• Advertising your promotion as “limited,” namely only available to a select number of entrants, unless it is true.
• Advertising that any person has previously won a prize without disclosing the approximate value and exact nature of the prize awarded.
• Representing that any entrant is more likely to win for any reason than other entrants.
• Including the word, “lucky” anywhere in your sweepstakes.
• Failing to print the words “SPECIMEN – NONNEGOTIABLE” clearly and conspicuously on any simulated item of value, such as a prize check, in your sweepstakes promotions.

California Consumer Protection Act (CCPA)

With the passage of the California Consumer Protection Act, you are required by law to obtain the express permission of the entrants in your sweepstakes before you use their personal information. In addition, you must also have a process in place that will allow consumers to obtain and delete all of the personal information you’ve collected about them.

These requirements also extend to any third-parties or services that you partner with or hire. They are also required to follow the CCPA and it is your company’s responsibility to ensure that they do so.

Restrictions on Alcoholic Beverage Companies Running Sweepstakes in California

There are strict rules when it comes to alcohol brands and sweepstakes promotions in California. The state of California bans the requirement of purchasing alcoholic beverages in order to enter a sweepstakes.

In addition, companies may not require a person to visit a retail location that sells alcohol in order to complete an entry for a sweepstakes. While you can promote your sweepstakes at a liquor store, bar, or other retail location that sells alcohol, you must offer another way to enter the sweepstakes, such as via a web entry form.

California also forbids advertising your sweepstakes on corks, labels, bottle caps or other alcoholic beverage packaging. Keep your sweepstakes promotions and packaging separate at all times to ensure compliance with the law.

As for the prize for a sweepstakes sponsored by an alcohol company, you may not award alcoholic beverages as the sole prize of your sweepstakes. To stay on the safe side, we recommend choosing prizes that do not involve alcohol at all.

Have an Attorney Review Your California Sweepstakes

California laws are not the only laws you must comply with to run a legal sweepstakes. You must also follow all federal and local laws that apply to your promotion. If you need help reviewing your Official Rules, we provide attorney review of Official Rules.

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

The post What You Should Know About Sweepstakes Rules in California appeared first on Sweeppea Blog.

As of January 1, 2020, the California Consumer Protection Act (CCPA) is now in effect. If your team has already set up processes to ensure compliance, you’re already ahead of the curve.

However, when it comes to your sweepstakes promotions and the CCPA, you may still have a few questions. Here is how the CCPA affects your sweepstakes.

What is the California Consumer Protection Act?

The CCPA is a new law that went into effect in California that is designed to give California consumers more control over their personal data. For brands, this means that they are required by law to provide more transparency on how consumer data is collected and used.

The categories of personal information can be found here: CCPA Categories of Personal Information.

What Rights Do Consumers Have Under the CCPA?

Under the CCPA, California consumers now have the right to request access to or delete any personal information you’ve collected from them. The CCPA allows California consumers to request that a business not sell their personal information to third parties.

You are required to respond to all such requests within 45-days of receipt.

Develop Written Agreements With “Third Parties” and “Service Providers”

If you will work with another business in sponsoring a sweepstakes, such as with a sweepstakes management company, under the CCPA its services might be considered as a “third party” or “service provider.” As a result, your company is required to include a “Do Not Sell My Information” web page link on all promotional materials for your sweepstakes.

It’s also important that you check with your sweepstakes management company to ensure that you have a written agreement that specifies how the agency will use consumers’ personal information.

Make sure to specify that the sweepstakes management company will only use the personal data to deliver the services you requested. Furthermore, your written agreement must also specify any prohibited usage of consumer data.

Consumer Data Requests and Your Sweepstakes Management Company

All third parties and service providers, including your sweepstakes management company, must also respond to all requests within the 45-day period. As a result, you need to have procedures in place for your partners to handle requests from consumers regarding their personal data.

Final Tips

With the CCPA comes some new compliance challenges for brands. However, the most important things are to ensure that you have compliance procedures and updated written agreements in place.

The more you communicate with your partners, the easier it will be to ensure that everyone is on the same page regarding their respective responsibilities.

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

The post How the California Consumer Privacy Act Will Affect Your Sweepstakes appeared first on Sweeppea Blog.