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ARTICLE · 30 JUNE 2022

Why Sponsors Must Adhere To Sweepstakes Regulations

Klein Moynihan Turco LLP
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Businesses continue to use sweepstakes promotions as an exciting way to acquire and retain new customers. But beware: sweepstakes regulations are no joke.

United StatesConsumer Protection
David O. Klein
David O. Klein
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Businesses continue to use sweepstakes promotions as an exciting way to acquire and retain new customers. But beware: sweepstakes regulations are no joke. Companies seeking to offer consumers the opportunity to enter a sweepstakes promotion, must follow applicable state laws, as well as Federal Trade Commission ("FTC") regulations when conducting and marketing their sweepstakes promotions. In general, contest advertisements may not be false, misleading, or deceptive. In addition, sweepstakes contest rules should include, among other things, the promotion's duration, entry eligibility details, winner selection process, prize amounts, number of available prizes, and a free alternative means of entry ("AMOE").

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