Each platform has rules about promotions that change frequently. Legal counsel can help the brand determine how to interpret these rules. Kyle-Beth: The FTC has made it clear that offering sweepstakes entries in exchange for mentions in social media creates a material connection between the promotion sponsor and the consumer. The consumer, in effect, becomes an influencer for the brand. This risk is particularly prevalent with low engagement prize promotions.
Usually, this problem can be solved with the right kind of hashtag attached to the entry. That hashtag must make clear that the mention is connected with a sweepstakes. The wrong hashtag can get the brand into trouble. If the brand wants to use all the entries as a marketing library, it should provide notice in the giveaway rules that copyright ownership transfers on entry or that the entrant provides the brand with a license.
The marketing team should work with a lawyer to ensure that the copyrights are covered properly in the rules. In addition, the terms should have content guidelines to pre-screen entries for third party trademarks and objectionable materials. Before making use of a photograph, for example, the brand will want to clear all content in the image. Best practices call for obtaining releases not only from the photographer who may not be the entrant, depending on how the prize promotion is structured , but also from every individual and third-party rights holder in the picture.
Failing to do so may expose the brand to claims of violation of rights of publicity or privacy, copyright infringement , or other legal causes of action. Videos are more complicated because they may also include music with multiple rights holders. Often, prize descriptions require disclaimers for exclusions, particularly event or travel-related prizes. In addition, some companies, like Apple, ban use of their products in prize promotions. Competent legal counsel can help minimize the risk of using these products as prizes.
Finally, a variety of laws govern giveaways relating to certain industries, such as dairy, alcohol, and cannabis. In some instances, the laws relate to who is sponsoring the game. In other instances, the laws regulate using such items as prizes.
Kyle-Beth: Yes. For skill contests, Arizona has a registration requirement as well. Remember that consolation prizes should factor into the total value of prizes in the promotion when it comes to registration and bonding requirements.
California has registration requirements for prizes and gifts offered as part of a telephone solicitation campaign. Too often, marketers forget that the total retail value of their prizes determine if they have to register and bond. Often, they commit to prizes too quickly and then they may have missed crucial deadlines for registering and bonding, subjecting the brand to penalties.
Kyle-Beth: Unfortunately, even the best laid plans can change. Drafting rules properly is the key here to allowing changes.
Marketers also need to be careful where they have registered and bonded for certain prizes. During the Covid pandemic, Florida indicated that it would allow substitute prizes in certain instances because of the state of emergency. Presumably, once the state of emergency is over, however, states like Florida will revert to a strict interpretation of prize descriptions.
It is always best to review your post-promotion marketing plan with legal counsel before the campaign launches. The alcoholic beverage industry has strict requirements surrounding illicit inducement and some states require approval before launching a giveaway in association with beer, wine or spirits.
Certain promotion structures involving the pharmaceutical and financial industries are prohibited, while tobacco related promotions are prohibited in some states.
Check with your own lawyer for laws specific to your industry and verify with a promotional lawyer or sweepstakes administrator to ensure that nothing is missed. For example, awarding alcohol is prohibited and any prize that requires the winner to pay an exorbitant amount of their own money to enjoy it i. How will you use the information you collect from Entrants? Certain states and countries have requirements for the collection, storage and use of consumer information.
How will you advertise your giveaway? The best way to ensure a successful promotion is to spread the word before and during the sweepstakes. But you cannot advertise the chance to win a prize—even in a teaser—without the proper legal disclaimers and if applicable, FTC required hashtags.
Additional disclosures may be required in certain states like Colorado. Your sweepstakes administrator will review your creative to ensure the proper legal disclaimers and disclosures are present before you share them with the public. But beyond that, the release requires the winner to attest to their eligibility and agree to release Sponsor liability should anything happen as a result of their acceptance, use or misuse of the prize. Your sweepstakes administrator should send extra travel waivers to any guest accompanying your winner on trips you are paying for.
This means the Sponsor or the sweepstakes agency fulfilling the prize must issue an IRS Form to the IRS and mail a copy to the winner for the tax year in which the prize was received.
In Michigan, asking entrants to visit a store is classified as consideration and is prohibited for sweepstakes. In addition, sweepstakes related to Tobacco are prohibited in Michigan. Outside of this, Michigan contests and sweepstakes are required to follow the same laws found throughout the United States, outlined in the Contests and Sweepstakes Laws in the United States section of this guide.
Minnesota contests and sweepstakes are required to follow the same laws found throughout the United States. Minnesota has no distinct difference from the contest and sweepstakes laws outlined in the Contests and Sweepstakes Laws in the United States section of this guide. Mississippi contests and sweepstakes are required to follow the same laws found throughout the United States. Mississippi has no distinct difference from the contest and sweepstakes laws outlined in the Contests and Sweepstakes Laws in the United States section of this guide.
Missouri contests and sweepstakes are required to follow the same laws found throughout the United States. Missouri has no distinct difference from the contest and sweepstakes laws outlined in the Contests and Sweepstakes Laws in the United States section of this guide.
Montana contests and sweepstakes are required to follow the same laws found throughout the United States. Montana has no distinct difference from the contest and sweepstakes laws outlined in the Contests and Sweepstakes Laws in the United States section of this guide. In Nebraska, contests and sweepstakes are prohibited from requiring entrants to make a purchase or forms of consideration to enter a promotion.
Outside of this, Nebraska contests and sweepstakes are required to follow the same laws found throughout the United States, outlined in the Contests and Sweepstakes Laws in the United States section of this guide.
Nevada contests and sweepstakes are required to follow the same laws found throughout the United States. Nevada has no distinct difference from the contest and sweepstakes laws outlined in the Contests and Sweepstakes Laws in the United States section of this guide. New Hampshire contests and sweepstakes are required to follow the same laws found throughout the United States.
New Hampshire has no distinct difference from the contest and sweepstakes laws outlined in the Contests and Sweepstakes Laws in the United States section of this guide. New Jersey contests and sweepstakes are required to follow the same laws found throughout the United States. New Jersey has no distinct difference from the contest and sweepstakes laws outlined in the Contests and Sweepstakes Laws in the United States section of this guide. New Mexico contests and sweepstakes are required to follow the same laws found throughout the United States.
New Mexico has no distinct difference from the contest and sweepstakes laws outlined in the Contests and Sweepstakes Laws in the United States section of this guide. In addition, sweepstakes are required to post a winners list.
Outside of this, New York contests and sweepstakes are required to follow the same laws found throughout the United States, outlined in the Contests and Sweepstakes Laws in the United States section of this guide. North Carolina contests and sweepstakes are required to follow the same laws found throughout the United States.
North Carolina has no distinct difference from the contest and sweepstakes laws outlined in the Contests and Sweepstakes Laws in the United States section of this guide. In North Dakota, contests and sweepstakes are prohibited from requiring entrants to make a purchase or forms of consideration to enter a promotion. Outside of this, North Dakota contests and sweepstakes are required to follow the same laws found throughout the United States, outlined in the Contests and Sweepstakes Laws in the United States section of this guide.
Ohio contests and sweepstakes are required to follow the same laws found throughout the United States. Ohio has no distinct difference from the contest and sweepstakes laws outlined in the Contests and Sweepstakes Laws in the United States section of this guide. Oklahoma contests and sweepstakes are required to follow the same laws found throughout the United States.
Oklahoma has no distinct difference from the contest and sweepstakes laws outlined in the Contests and Sweepstakes Laws in the United States section of this guide.
Oregon contests and sweepstakes are required to follow the same laws found throughout the United States. Oregon has no distinct difference from the contest and sweepstakes laws outlined in the Contests and Sweepstakes Laws in the United States section of this guide.
Pennsylvania contests and sweepstakes are required to follow the same laws found throughout the United States. Pennsylvania has no distinct difference from the contest and sweepstakes laws outlined in the Contests and Sweepstakes Laws in the United States section of this guide.
Even with an alternative means of entry, any promotion asking users to visit a store will need to be registered. Outside of this, Rhode Island contests and sweepstakes are required to follow the same laws found throughout the United States, outlined in the Contests and Sweepstakes Laws in the United States section of this guide. South Carolina contests and sweepstakes are required to follow the same laws found throughout the United States. South Carolina has no distinct difference from the contest and sweepstakes laws outlined in the Contests and Sweepstakes Laws in the United States section of this guide.
South Dakota contests and sweepstakes are required to follow the same laws found throughout the United States. South Dakota has no distinct difference from the contest and sweepstakes laws outlined in the Contests and Sweepstakes Laws in the United States section of this guide. Outside of this, Tennessee contests and sweepstakes are required to follow the same laws found throughout the United States, outlined in the Contests and Sweepstakes Laws in the United States section of this guide. Outside of this, Texas contests and sweepstakes are required to follow the same laws found throughout the United States, outlined in the Contests and Sweepstakes Laws in the United States section of this guide.
Utah contests and sweepstakes are required to follow the same laws found throughout the United States. Utah has no distinct difference from the contest and sweepstakes laws outlined in the Contests and Sweepstakes Laws in the United States section of this guide.
In Vermont, contests and sweepstakes are prohibited from requiring entrants to make a purchase or forms of consideration to enter a promotion. In addition, sponsors cannot require consumers to pay for return postage if they request information about your promotion, such as a list of winners or a copy of the official rules. Outside of this, Vermont contests and sweepstakes are required to follow the same laws found throughout the United States, outlined in the Contests and Sweepstakes Laws in the United States section of this guide.
In Virginia, asking entrants to visit a store is classified as consideration and is prohibited for sweepstakes. In addition, sweepstakes related to Tobacco are prohibited in Virginia. Outside of this, Virginia contests and sweepstakes are required to follow the same laws found throughout the United States, outlined in the Contests and Sweepstakes Laws in the United States section of this guide. Washington contests and sweepstakes are required to follow the same laws found throughout the United States.
Washington has no distinct difference from the contest and sweepstakes laws outlined in the Contests and Sweepstakes Laws in the United States section of this guide. West Virginia contests and sweepstakes are required to follow the same laws found throughout the United States.
0コメント