Contests And Sweepstakes 101

Contests and sweepstakes can be effective marketing strategies to help brands promote their products and services, engage potential customers and increase brand awareness. However, if your company is thinking about sponsoring a contest or sweepstakes, it's crucial that you're aware of the many applicable rules and regulations in order to avoid colliding with the law.

Multiple federal laws govern the administration of contests and sweepstakes, including most notably the FTC Act, which prohibits unfair and deceptive advertising practices. Contests and sweepstakes must be truthful, clearly disclose all material terms, include appropriate disclosures and follow all other truth-in-advertising laws. Additional federal laws may be applicable depending on the medium being used to advertise and administer the promotion, including laws enforced by the U.S. Postal Service and the Federal Communications Commission. Moreover, each state has its own laws that govern these types