Sweepstakes promotions can be valuable tools for businesses seeking to attract new customers. Unlike static ads, newsletter sign-ups and other basic website registration forms, sweepstakes incentivize consumers to provide their information to businesses by offering entrants the chance to win prizes.

As noted, sweepstakes can be a viable means for building a customer database. However, businesses must prominently include a privacy policy in connection with each sweepstakes in order to ensure that those businesses can utilize the database to its maximum potential. In particular, privacy policies must inform consumers as to the information collection, use and sharing practices of the subject sweepstakes operators. In addition, sweepstakes operators must also ensure that all required disclosures are made in connection with any intention to use the name, likeness and/or biographical information of winners in future marketing efforts.

Key Features of Sweepstakes Privacy Policies

With a legally compliant privacy policy, and other required consent language included at the point of data collection, sweepstakes operators can build a valuable database of consumers. If done properly, the privacy policy and other consumer consents obtained will enable the business to engage in e-mail marketing and, where permitted by law, mobile/text message marketing. Absent a property constructed sweepstakes privacy policy, however, use of entrant data for marketing purposes will likely violate applicable state and federal laws.

Further, sweepstakes operators often seek to use the name, likeness and/or biographical information of winners for marketing purposes. However, without carefully drafted sweepstakes contest rules and a privacy policy, the use of a winner’s information in such a manner could violate that winner’s rights of publicity.

Please note that certain jurisdictions may require additional consumer consent in order to use a resident’s name and/or likeness.

Ensuring that Your Sweepstakes Privacy Policy Is Legally Compliant

Given the considerable value of a database of engaged consumers, it is vital that sweepstakes operators take the necessary steps to ensure that they can utilize consumer data to the fullest extent of the law. In particular, prospective sweepstakes entrants must be provided with, and agree to, a clearly written and legally compliant privacy policy. In order to achieve the foregoing, it is crucial to retain experienced privacy law attorneys who are well-versed with how sweepstakes promotions work.

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