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Understand the Rules for Contests
Contests can be a great way to engage consumers and create publicity for your business, and social media makes it easier than ever to promote a contest to a broad audience. However, there is more to setting up a successful promotion than brainstorming a creative competition and selecting an enticing prize. Before inviting anyone to enter a contest, understand that contests (and, to an even greater degree, sweepstakes) are governed by federal and state laws that control how contests are advertised and administered, participants can be engaged, winners selected, and how consumer information is treated.
Be sure to check applicable regulations before offering any contest, even one offering a prize of only small or nominal value.
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DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.
© Sterne, Kessler, Goldstein & Fox P.L.L.C.
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