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sweepstakes and contests

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 Florida, businesses that wish 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 by allowing free entry. Florida law requires operators of sweepstakes or contests to register with the state if the total value of the prizes offered exceeds $5,000. Additionally, businesses must provide a set of official rules for the promotion, which should address eligibility, entry procedures, prize descriptions, odds of winning, and how winners will be selected and notified. The rules must also include details on how to enter without making a purchase, to ensure no purchase is necessary. Failure to comply with these regulations can result in civil or criminal penalties.

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Business

sweepstakes and contests

Wall Street Quality Legal Services Customized for Main Street Businesses

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Business

sweepstakes and contests

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