Promotions, Contests, and Sweepstakes Terms and Conditions
Sweepstakes are prize giveaways. One wins by the luck of a draw (i.e. by chance or randomly).
Contests are also a price giveaway, but here, the winner must do something to win the price. For example, the winner has the best teriyaki chicken recipe, or runs faster than anyone else, etc.
A Lottery is a drawing, for a prize, but people must pay money to buy the chance to win.
All three of the above are highly regulated by the Federal Trade Commission (“FTC”), the Federal Communications Commission (“FCC”), the United States Postal Service (“USPS”), and the United States Department of Justice (“DOJ”). They may also be regulated by state laws.
Moreover, some sweepstake promotions must be registered within a state, and if nationwide participation is allowed, must comply with both federal regulations and the regulations of each state.
Before launching your next promotion, let us help you avoid fines, a law suit, or criminal prosecution.