Federal anti-gambling laws apply to all gifts or contests, especially when they are held online. Overall, however, each contest or sweepstakes should state the odds of winning, the date the winner will be selected, and other important details for transparency. No purchase may be required to enter the contest. If you`ve decided to run a contest, giveaway, or sweepstakes, you also need to make sure everything is above the board (and avoid legal trouble). To do this in the United States, you need a basic understanding of the laws of your state and the United States in general. Contests and sweepstakes are great strategies to connect with your audience and achieve your marketing goals. In the United States, it is important to understand federal and state laws when preparing for a contest or sweepstakes. Although these are general advertising laws, there are nuances in these rules and it is always recommended to consult a sweepstakes management company before launching your promotion. Any draw involving alcohol must be approved in advance by the state alcohol control authority. After that, U.S. general advertising laws apply.
Sweepstakes or contests cannot include tobacco-related activities or prizes. After that, U.S. general advertising laws apply. Log in later as we explore lottery laws and regulations in the southern states of the United States. All sweepstakes and contests open to minors may not collect personal or health information without the consent of a parent or guardian. After that, U.S. general advertising laws apply. Your safest way to plan your next promotion is to consult a lottery administrator. In the meantime, you can check out a selection of laws by state below. I. The contest «with prizes totaling more than $5,000 must be submitted to the Florida Department of Agriculture and Consumer Services (FDACS) seven days prior to the start of the game promotion» – Florida Department of Agriculture and Consumer Services. More detailed information can be found here: www.fdacs.gov/Business-Services/Game-Promotions-Sweepstakes ii.
In Florida, contests do not have state-specific legal requirements that differ from the general advertising law. Contests and sweepstakes in Florida must continue to comply with normal advertising laws. In Michigan, inviting participants to visit a store is considered a consideration and is prohibited for sweepstakes. In addition, tobacco-related sweepstakes are banned in Michigan. ADDENDUM: Direct mail containing information or materials about lotteries must contain full disclosures that follow a specific format, and the submission must include the full Official Rules. There are three different categories of gifts and it is important that you use the name of the type of gift correctly to avoid misunderstandings that could lead to a legal problem later. Read our full article on the types of gifts that are contests, sweepstakes and raffles. ii. In Alabama, all other contests and sweepstakes do not have state-specific legal requirements that differ from the general advertising law. Contests and sweepstakes in Alabama must continue to abide by customary advertising laws. Some states have additional requirements or restrictions. If your business or one of your participants is located in these states, the following laws apply.
i. Asking advertisers to visit a store is considered a consideration and is therefore prohibited for Michigan sweepstakes. For sweepstakes offering prizes over $5,000, prizes must be linked and registered 7 days prior to the start of the contest. No sweepstakes or contests may require a purchase of any kind, including contest entry fees. For postal events, participants must receive detailed notifications, such as: that they have not yet won, that the purchase is not necessary and does not increase their chances of winning, the value of the prize(s) and the odds of winning. After that, U.S. general advertising laws apply. ADDENDUM: Sweepstakes with a total prize or prizes greater than $5,000 must be registered and tied. This is not an exhaustive list of States that require registration and safeguards. This list includes only the northern states of the United States (as defined above).
Unlike a lottery, sweepstakes can be held by individual companies and do not need to be sanctioned by the state or state. Unlike lotteries, sweepstakes do not require a purchase to participate. In fact, it is illegal to require the purchase to enter. An exception to this rule is when there is a free alternative entry (AMOE) in addition to a purchase entry option. For example, if a fast food chain distributed tokens with the purchase of a meal, it would also allow a free postal option to participate. Retail businesses that hold sweepstakes with a total prize pool of more than $500 must register their campaign with the state. After that, U.S. general advertising laws apply. If you haven`t read our previous article on the contest rules of the northern states of the United States, here`s a reminder of what a contest means and the current rules for all sweepstakes in the United States. All sweepstakes and contests in Indiana that include alcoholic beverages must be submitted (along with all marketing and promotional materials and full official rules) and pre-approved by the state Alcohol Control Board. ii.
In Indiana, all other contests and sweepstakes do not have state-specific legal requirements that differ from the general advertising law. Contests and sweepstakes in Indiana must continue to comply with standard advertising law. In Colorado, contests and sweepstakes are prohibited from requiring entrants to purchase or return to participate in a promotion. Most states allow purchase requirements in contests where winners are selected based on skills or criteria. As lottery administrators, we can help you provide the services necessary to store and register your contest in New York. Right now, at US Sweepstakes, we offer a free 30-minute consultation to see if a sweepstakes is the right solution for your business. If you are interested, simply fill out this form and we will get back to you as soon as possible. One of the first steps in managing a sweepstakes or contest in accordance with the law is to understand the difference between the two types of promotions. New York State requires businesses to enter a sweepstakes if the prize awarded or pool of all prizes combined has a retail value greater than $5,000. In addition, a guarantee for the amount of the prize must be obtained. Our blog is a great source of legal information, advertising strategies and advertising ideas.
Feel free to browse and call us if you have any questions! If your Contest Prize or all Prizes combined have a Total Prize with an Approximate Retail Value (ARV) of $5,000 or more, and the Contest is open to Florida residents, you must register your Contest with the State. Tennessee prohibits sweepstakes that require winners to submit a public publication. Some states have exceptions or different laws regarding contest and sweepstakes rules. States that have the most significant exceptions include (NOTE: Links lead to state resources): In addition to complying with the general advertising law, you should review the various laws on contests and sweepstakes by state to make sure everything is on the rise.