Sweepstakes Basics in Law

 Sweepstakes law basics

What is a sweepstakes, you ask?

Sweepstakes refers to a promotion where a prize is given on the basis not of skill but rather chance. If the prize is awarded based on skill, the promotion is deemed a contest.

How is a sweepstakes different to a lottery draw?

Except for state-run lotteries or authorized raffles, lotteries violate federal and state laws. A lottery promotion generally includes the following three elements: 1) prize, 2) chance, and 3) consideration.

Is it possible to require that a product be purchased in order for me to be admitted?

No. No.

What is consideration?

Consideration can be defined as a legal term that refers to an undertaking made in response to a promise. Sweepstakes promotions generally offer two types of consideration: non-monetary and monetary. Monetary usually refers to payment of money. This could be the purchase of goods or services, or direct payment of an entrance fee. Non-monetary consideration means that the entrant has to spend considerable time and effort.

What are the rules?

All sweepstakes must be governed by official rules. This is the agreement between the sponsor (entrant) and the participant. Once sweepstakes have begun, rules can't be modified.

The official rules should contain the following information. There are additional disclosures depending on the type and channel of the promotion.

What are the requirements to register for a sweepstakes

All sweepstakes valued at more than $5,000 must be registered by sponsors in Florida, New York, Rhode Island. Rhode Island requires that the prize value is $500 for retail store promotions. All registrations must be submitted with the following. REAL FACTS AND FIGURES ABOUT SWEEPSTAKES