Sweepstakes contests have long been popular marketing tools that can generate interest in your business and help build customer databases. Internet-based sweepstakes are increasingly common because they provide the added benefit of attracting traffic to your Web site, where entrants can receive additional information or make online purchases. Internet-based sweepstakes allow the sponsor to reach a worldwide audience at a fraction of the cost of mailing paper sweepstakes materials or promoting the sweepstakes solely through the broadcast media, and with far more immediacy.
Significant legal regulations govern sweepstakes promotions, and the consequences of violating these regulations go beyond civil liability for unfair trade practices, and can include criminal liability. Internet-based sweepstakes present additional concerns that may not arise in a traditional sweepstakes. For example, the global reach of the Internet means that, unless limited to U.S. residents, a sweepstakes must
