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 Oregon, 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. Contests, which are based on skill or merit rather than chance, must also avoid requiring a purchase or payment to enter. While Oregon does not have the same registration requirements for sweepstakes as states like Florida, New York, and Rhode Island, businesses must still adhere to consumer protection laws. Official rules should be clear and include details on eligibility, entry procedures, prize descriptions, odds of winning, and how winners will be selected and notified. Additionally, businesses should be aware of the federal Deceptive Mail Prevention and Enforcement Act, which governs sweepstakes through the mail, and the Federal Trade Commission's guidelines on promotional activities.