If you want your business to run a sweepstakes or contest you must be careful to structure the promotion so it is not characterized as a lottery under state and federal law, as lotteries are illegal unless sponsored by government entities. Some states, such as Florida, New York, and Rhode Island have registration requirements if the total amount of prizes exceeds a certain amount. And there are a number of issues you should address in the official rules you publish with the sweepstakes or contest.

In Connecticut, businesses that want to run a sweepstakes or contest must comply with both state and federal regulations to ensure their promotion is not considered an illegal lottery. A lottery typically includes three elements: prize, chance, and consideration (entry fee or purchase). To avoid being classified as a lottery, most sweepstakes remove the consideration element, allowing free entry. Connecticut does not have specific registration requirements for sweepstakes or contests like Florida, New York, and Rhode Island. However, businesses must still adhere to the Connecticut Unfair Trade Practices Act (CUTPA), which prohibits deceptive advertising and marketing practices. The official rules of the sweepstakes or contest should be clearly published and address eligibility, entry procedures, prize descriptions, odds of winning, and how winners will be selected and notified. Additionally, businesses should be aware of the federal regulations enforced by the Federal Trade Commission (FTC) regarding advertising, disclosures, and consumer protection.