Why Sweepstakes Contest Rules Matter

Sweepstakes are valuable marketing tools that businesses use to promote their products and services across all forms of media. If businesses are interested in running legal sweepstakes promotions, they must be aware of the importance of sweepstakes contest rules. Prior to the commencement of sweepstakes contests, their parameters (e.g., duration and prize amounts) must be established in the contest rules. Such parameters cannot be changed, even if the subject sweepstakes are unsuccessful in attracting a significant number of entrants. The reason for this is that sweepstakes contest rules are legally binding contracts between sponsors and contest entrants. Operators who fail to comply with their own sweepstakes contest rules run the risk of being sued by private litigants and/or investigation by regulatory authorities.