Question

Topic: Strategy

What Are The Guidelines For Contests/giveaways?

Posted by Blaine Wilkerson on 4/23/2004 at 9:27 AM ET 500 Points
We have all heard radio contests and give-aways if your are the XX caller. In addtion, you have probably seen many websites offer cash, free services/products and other stuff in exchange for participating in some kind of event or even simly submitting your email address.

However, when you look at Publisher's Clearing House, Beverage Companies, Computer Corps. , Sports Cards, etc, they all seem to have a "Purchase not necessary" disclaimer.

Is this due to the nature of a law restricting companies from offering free stuff ONLY to those who buy things? Is this why radio stations, websites etc can simply have drawings or contests in order to "earn" the reward without purchase?

To be specific, let's say I wanted to host a screenwriting competition on my website and the winner gets to spend the weekend with Quentin Tarentino and have him critique their work and give advice, etc. Would I have to have a "Send in a 3X5 Postacerd...) disclaimer for non-participants, or would I be exempt because I am not implying/requiring a purchase to participate?
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RESPONSES

  • Posted by Pepper Blue on 4/23/2004 at 10:57 AM Accepted
    Hi Blaine,

    I checked into this and what I found leads me to believe you might want to contact a friendly local lawyer who knows something about contests and sweepstakes.

    Here is one law firm (not local, DC & NYC) that specializes in this and has some good info, maybe you can email or call them and get low/no cost piece-of-mind consultation.

    https://www.arentfox.com/home.html

    Depending upon the type of prizes and the requirements to win, there can be extensive rules on a state-by-state basis for running drawings. There are also major differences between contests and sweepstakes.

    A contest generally has requirements for a participant and is not based solely upon chance. These types of events have tremendous legal ramifications and should be cleared through a promotion house that specializes in these kinds of promotions. They know the requirements and are accustomed to managing the processes.

    A sweepstakes is much less involved in terms of legalities. It is only possible to be a sweepstakes if the only way of winning is by chance. However, there are a few states, e.g., Wisconsin and Vermont to name a couple, that have specific elements that may not be required of participants. Once again, it is suggested that you use a promotion house to sort through these elements.

    I hope that helps!
  • Posted by Blaine Wilkerson on 4/24/2004 at 9:48 PM Author
    Thanks for all the suggestions! I think I'll drop my attorney a note to clarify.

    Nevertheless, JIM, Iwould like to take you up on your offer for more details. I'll send you an email.

    Better leave this open for a little while just in case.

    mbarber- It sure would be cool to have a "sit-down" with QT, huh? My guess is you had better know your classic martial arts and 70's "B" action movies. QT seems very inspired by those genres!
  • Posted by Blaine Wilkerson on 4/27/2004 at 10:12 AM Author
    Thank you!!
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