How To Legally Run Prize Contests & Sweepstakes To Generate More Sales
I'm sure you've seen Coca-Cola, McDonald's and many other mega businesses use sweepstakes marketing campaigns to bring in business. Those companies do it repeatedly because it has proven to be effective marketing.
This highly successful marketing technique, that you can use in your business, must be done properly, following the various State and Federal laws. If you don*t know what to look for, the legalities can be legal quicksand.
Sweepstakes and contests are legally very different animals although people confuse the two. Contests are considered games of skill. In a game of skill winners are determined by how well they complete a given task.
Sweepstakes on the other hand, are games of chance. In a game of chance winners are determined randomly by some event. An example of a sweepstake would be a random drawing to determine the prize winners, where the entrant has no control over the outcome. In sweepstakes, to be legal, all entries must be free, without any cost or consideration to the entrant. Consideration could be an entry fee, a product purchase or some other form of cost to the entrant.
Rules are a key element in legally running either one. The rules form a legal contract, the agreement, between the promoter and entrant and can*t be changed once published.
In criminal law every crime contains various elements. For example, in most states a promotion is not legal if it involves three elements: prize, chance and consideration. Therefore, in a game of skill any element of chance must be eliminated to be legal. That allows promoters to require consideration, an entry fee, for an entrant to participate, except in Maryland, North Dakota and Vermont. This can be accomplished, for example, by requiring the entrant to submit a short writing, for judging, on a particular topic. The judging criteria, for selecting a winner, must be clearly set forth in the rules.
In designing your contest you should know that some states prohibit them and your rules should clearly state the cons test is void in the states you want to exclude. It is important to note that the jurisdictions you want to exclude, be specifically named. It is not enough to use a catchall exclusion such as *void where prohibited.* Some states require registration, so as a practical matter, you may want to exclude those as well.
Use your imagination, think of a great promotional concept, and start taking advantage of this popular marketing technique today.
Important Disclaimer: All information is generalized, presented for informational purposes only, not legal advice, and presented *as is* without warranty or guarantee of any kind. Readers are cautioned not to rely on this information and to consult an attorney for their specific needs. Laws change from day to day and each individual*s legal situation and requirements are different.
About the Author
Bob Silber*s Internet marketing clients read like a who*s who of Internet marketing, and include individuals generating millions of dollars annually on the Net. Bob*s FR^EE subscription to the *Bob Silber Letter* contains interviews With The Most Successful Marketers On The Net, The Latest Cutting Edge Marketing Techniques, & The Ever Changing Internet Marketing Laws That You Need To Know. Subscribe now at http://www.BobSilberLetter.com
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