Rules Writing and Review
Companies of all sizes are eager to implement cutting-edge, digital-first, and innovative promotions. However, it’s crucial to remember that any sweepstakes or contest must include a comprehensive set of official rules that outline the material terms and conditions governing the promotion. Various laws mandate that these rules meet specific requirements.
Many marketing professionals may not fully grasp the complex legal implications in the digital world, which can lead to significant financial risks for their agency or client brand if they fail to comply. While contests and sweepstakes are excellent tools for brands to engage with consumers, they come with a host of regulatory, intellectual property, privacy, and other potential liability concerns.
What’s Required?
Each sweepstakes or contest must feature a set of official rules that clearly define the promotion’s material terms and conditions, ensuring compliance with various legal requirements. Regardless of the type of contest, sweepstakes, or promotion, the following requirements should be met:
- Consistent Start and End Dates: All entry methods must have the same start and end dates.
- No Purchase Required: Participants must not need to make a purchase to receive or claim a prize.
- Prize Values & Details: Clearly state the number of prizes and their descriptions, including the approximate retail value (ARV).
- Eligibility Criteria: Define eligibility based on location and age.
- Winner Selection and Taxes: Outline the process for winner selection, prize clearance, and tax obligations.
- Approvals and Risk Management: Ensure all necessary approvals are in place and risks are managed.
- Record Keeping: Maintain thorough records and lists of winners.
No Purchase Necessary
To avoid legal issues, particularly the risk of creating an illegal lottery, it’s essential to include a “No Purchase Necessary” option in your sweepstakes or contest. You can offer participants the option to submit an online form for a single entry or provide a downloadable and fillable PDF form that can be mailed or faxed. While this requirement doesn’t apply to all promotions, it’s particularly relevant for those open to the public that allow entries through purchases.
Customized Rules
We can provide a standard set of rules suitable for almost any contest. However, if you or your legal team need something more tailored, we are equipped to accommodate that.
Rules Writing and Review
- Drafting Official Rules (Terms and Conditions)
- Drafting Liability/Publicity Release Forms
- Review of Official Rules
- Review of Release Forms
- Review of all Creative Materials (e.g., website, print, etc.).
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