I am often asked how random drawings should be conducted to
select the winners of a sweepstakes. It sounds like a fairly simple
request, but like most legal questions, "it depends." For
random drawings, it depends on the type of sweepstakes, the methods
of entering, the number of entrants, the value of prizes, and other
details of the promotion.
The threshold question is whether the sponsor will handle the
drawing or arrange to have a third party select the winners. If the
sponsor decides to have an ad agency, consultant, law firm or other
third party conduct the drawing, that firm will usually determine
the type of drawing that is appropriate. While this is usually an
easy and safe way to select the winners, the sponsor should insist
that the firm conducting the drawing enter into a contract in which
it agrees to protect the sponsor from any liability and indemnify
it from any damages resulting from problems with the drawing.
