It is an ongoing giveaway. Here is the link: Skip the giveaway completely? You could keep sending them the URL to this article as well ;. Thanks for the hint. Can I run a contest that requires members to send out invites to their friends and families? Have two sets of prizes. One, for each invite they get put into a drawing for lesser value prizes. Second, for users that sign up for a paid membership they will be put in a drawing for a larger valued prize?
Unfortunately I believe that would be against the rules and would probably advise against that! Hey Ted — can you be a bit more specific? I believe that would be within the guidelines.
Is rafflecopter a sweep stakes only? Can you make it a contest as in order to run it on my Australian business there needs to be an element of skill involved. It would just be a matter of choosing your winner to your contest manually vs using our random generator.
Thanks for this article! Shed some light on a current project. I wanted to ask a specific question regarding crowdfunding and giveaways. I ride the bicycle for about a month and get sick of it. Hey Matt — thanks for reading. I think it would be a gray area if you were to hold a giveaway for it and only open it to those backers though. Also I think it would be a gray area if your intentions were to give it to a backer before you started the crowdfunding campaign. AN Amazing testimony on a faithful day as i was walking down my street, hopeless, i meet my old friend Tonia she was so happy to see me and she pick me up to a fast food joint in the city of Canada, she was my old time friend and class mate, but now she look different, looking good riding a big car and wearing all sort of customize jewelry i was jealous but since she is my very good friend i have to ask her some few question on how come about her wealth and she say to me as a good friend and old friend of hers, she told me the secret of her wealth behold i was so surprise that a voodoo spell caster can cast a lottery spell and will send you the lucky numbers to win millions of dollars, as a hopeless lady i have to try all alternative to make sure i get good money and take care of my family, so believe me i contacted this Africa voodoo spell caster name Dr Rsato, i contacted him quickly through his mail address at doctorrasatospelltemple hotmail.
Rasato is truly a gifted voodoo spell caster and you can contact him today for a lottery spell lotto any kind of spell he will help you as well. Thank you Greg for the really helpful article. I have a question about sweepstakes: Is it possible to run a sweepstake with a donation page? This would not be payment and is not necessary to enter the sweepstake. The donation page would be to collect donations for charity, it would not be a purchase to increase odds of entry.
Hey Anton — you can certainly run a giveaway or sweepstakes as a means to market or bring attention to offering donations for raising money for a cause. I would just be sure that your participants are aware entering the sweepstakes and donating to the cause are two separate entities. I am based in the UK — do the above rules apply to me? Or am I governed by UK laws related to giveaways? Hey Laxmi — this post was written specifically with the US laws in mind. I know there are some differences between the US and the UK laws however. Assuming that your event is a sweepstakes, calling it a sweepstakes or giveaway totally fine.
The item to be raffled is just something small a teapot or picture frame, etc. Just thought if more vendors in the shop participated then people would come in to see what is being given away. Is this ok , sounds like fun to me and think it would draw in foot traffic!
Raffles are typically associated with promotions where you pay for a ticket. But what you described is definitely ok — let us know if you try it! Thanks so much for the quick response! Thanks again , now I feel better about going forward with this idea , take care , Nancy.
If I have an online survey that offers sweepstakes incentives, when do I have to launch it- exactly when the sweepstakes entry period starts, or during the sweepstakes entry period? It would probably reduce any confusion from you or your participants. Thanks for the writeup. Do I need to worry about which country each entry is coming from? Do I need a special license or to file special tax forms? Do you know any terms I should search for to get better results?
Sweepstakes Terms and Conditions Template Rafflecopter. Hopefully they get back to you with some answers! How can it be called a No Purchase necesarry option when you have to mail them something? You have to buy the envelope and the stamp. Hi, I have a question, there are a lot of charitable sweepstakes game rooms around my area, they all have 1free entry every 24hrs but some require a 1 donation in order to redeem for your winnings.
If a nonprofit and a company partner in a sweepstakes, do the same laws govern or are there more regulations. Hey Erin — I guess it would depend on the situation. I wonder how this may apply to loyalty programs or promotions. But we have some who have signed up for our email list, provided their birthday, but never have been to any of our events yet. Are we wrong to say that you have to paid for a registration in order to get your free birthday reg. Perhaps a giveaway, but if you are a customer attended before , then you get it.
Hey Mark — good question. Hi Greg… just reposting my question: Also, in a sweepstakes, does there HAVE to be a winner? I believe that would be alright. Just something to keep in mind. Howardites Meteorites are holding a free meteorite giveaway raffle every week!
Our prizes make great little gifts to those who have an interest in astronomy meteorites space. It is a ticketed event and the plan is to charge a ticket price which includes entry into the event, food, drinks, some product and a raffle ticket for a door prize. Secondly, is it allowed to give more tickets away with purchase? So if they buy x product, they get another ticket? I hope that helps! I am looking to host a fundraiser benefitting a charity organization through my for profit business. We want to require a donation for an entry as the point of this fundraiser is to raise money for the cause of the non-profit organization.
Can I run a 24hr promotion where I give someone for example a pair of shoes for the first two purchases of luggage? I couldnt find anything about a promotion ran in that way. Thanks for your help! I actually worked for a company in my years prior to working at Rafflecopter that tried to do almost exactly this. Our legal department freaked out and demanded we take down the promotion immediately. I have a question about Twitch popular game streaming platform giveaways.
They provide their customers streamers with an option to do giveaways, where participants viewers would have to type in certain word in chat to enter the giveaway. So in other words, the person who is doing a giveaway can increase a chance of winning the giveaway by lets say x10 times if such participant is subscribed to their channel. Tough one — definitely a gray area. Any idea about this set-up: They would not have to enter to win anything and would be eligible simply by being a member.
What if you run a sweepstakes that allows anyone one entry without any purchase necessary, but you then award additional entries based upon usage of a free online service? This seems like it falls in grey area. There is no purchase involved at all, but the usage of the free service takes time and effort so that could be seen as consideration. Hey Nicholas — sorry for the delayed response! Unless if it took a long time to sign up for that service like if you had to fill out a 30 min survey or something along those lines.
Hi Greg, I was going to throw a St. We were going to try to give away a new motorcycle at the party for everyone in attendance. If we had the party goers fill out a separate form to enter the drawing and not use the paid tickets to get into the party would that be ok? Trying to figure out a way where we would be in compliance with the law.
It makes it easier if the money collected from the tickets was going to charity, or if the party was free to attend. Can you run a contest to give away a partial scholarship?
It requires no money to enter, however the winner would ultimately be responsible for the other half of the tuition not covered by the scholarship. For Sweepstakes, do you have to have a start and end date? Is it possible to instead have a number of entries instead of an end date? I understand the consideration qualifications that need to be avoided no purchase necessary, etc.
But does the prize given have any rules? I think the only snag you might run into is that not a lot of entrants would care to participate knowing that the prize is a coupon or something along those lines. That might be more enticing. Turner Classic Movies is running a contest to be a guest programmer with Ben Mankiewicz one of their presenters.
Hi — can I have a sweepstakes where anyone can enter, but they can get additional entries for trying on the clothing I am selling? Hey Bryan — despite game pieces coming on items which you purchase from McDs, you can still acquire game pieces without purchasing anything.
I have a question: No purchase to enter and the winner is randomly selected. The person who wins has the opportunity to use the happybucks towards a future purchase. Hey Teri — it sounds like the equivalent of giving out gift card or gift certificates. Say worst case scenario. Can I run a contest where one entry ticket is given for free and second one is given with a purchase? My company we are a for profit co. I would also like to increase our subscription readership through a raffle type item that we would give away. For example, purchase a subscription at a price lower than our regular rate for yourself or sponsor a subscription and you will be entered for free into a raffle or a drawing to win this blank item.
Would this be proper? Can you limit the number of entrants to a sweepstakes giveaway?
For example first entries received? Were you thinking about limiting it to where the first entries receive the prize, or once people entered, you choose a winner from that entry pool randomly? I believe both instances are allowed. Hi Greg, awesome article and interesting to read through the comments.
Hope you still are looking at this comment section and can get back to me. Even a facebook like, tagging some friends or whatever else could be looked at as a purchase, at least from some or even majority of the states. The problem seems to be that a judge could define that the facebook likes you gathered while doing the sweepstakes gives you more marketing power which results in more profit. So in the end you are financially benefiting from the sweepstakes which could be interpreted as a purchase.
Is this correct or completely misinterpreting it? So the only way to get around it would be to convert it into a contest. So this means for contests it is allowed to ask for a purchase aka specific conditions to participate like follow my page, tag some friends and what not. The only way to do this is to make the giveaway NOT drawn by luck but by skill.
Everybody that does all that applies to the giveaway. I will benefit financially from it because even though the app is free, people are forced to watch ads every now and then. Also, all social things they need to do following, tag 5 friends benefits me marketing wise and in the long run financially.
So if I add a free way of being able to participate for example by sending a physical letter to a specific address would this then make the giveaway legal and count as a sweepstakes? And a last one: A hostess of the month club. I would have 6 people commit to buying a certain number of items every month. Each of the 6 individuals sign up to receive the hostess benefits for a specific month. There is no drawing, no contest, and no chances of any kind. The party earns certain benefits based on the amount of product that is sold at that party. Again there is no prizes, no competition, no giveaways for entering or anything like that.
My question is does this fall into the issues discussed in this article? If the rules of the sweepstakes are: Register for free to the website and earn points To earn more points you can: Free points or paid points are the SAME!!! Each point has the same weight! Hey Greg, I assume there is no problem for a business to run a promotion in which if you purchase something, you automatically receive something else? For instance, buy a subscription to a magazine and you are guaranteed to get two free tickets to a sporting event. I have a question for you.
We, in Texas, want to bring someone on a trip to Canada to be on a movie set. We want to promote our new camera sell them obviously. We wanted to offer a, buy a camera get an entry, plus get an additional entry for each accessory you buy. On top of that we would offer a friend referral, if they make a purchase, for additional entries. Its seems that this is not legal so I am trying to figure out what options we have.
Could we run both promotions together and mix the purchase entries with the free entries, such as tweeting, email, social sharing, etc.? Thank you in advance for your help! How is this possible? What are your thoughts on the legality of Omaze https: Their model appears to be some sort of cross between a sweepstakes and a raffle. Just curious if you could help clear this up for me. We currently give gift baskets of different values to clients on depending on their total cost of the booking get gift card; get plush animal and gift card; get movie, plush animal and gift card ect we do not advertise this it is just a gift to the client as a thank you for booking that they recive when they get their travel documents.
The above promotion would be advertised Social Media and Trade shows. In order to enter the contest, they require you to complete all the steps on their entey form. I am looking at running a promotion to award my top performer in my affiliate program. Performance would be based on the number of visitors sent to our website and sales. But I am bringing in the website visitors in factoring their performance.
Would that be legal? You are talking about running a competition among essentially your business partners. That is purely a business activity and has nothing to do with running the types of promotions discussed here. That is perfectly acceptable. Basically, you are giving away a coupon. In the TOS or the fine print, it says that no purchase is necessary and that if you email us with a specific subject line, you can get those same 10 entries for free.
If I have a monthly subscription service for product and I want to give away bonus items to 5 random paying subscribers does this still fall under the same rules? Well I hope you are still answering questions about this… we have an event where the 1st 25 guests get a free shopping bag within 4 of those bags is a gift certificate to be used that day with one of the vendors displaying at the event… is that illegal?
What about sweepstakes-promotions by a for profit entity, which is only open to members, where the ongoing membership is contingent on paying fee. What about requiring somebody to enter a sweepstakes on site? That is, the requirement is that you show up to the business. There would be no purchase necessary, but they have to do it on site. Ok to offer a sweepstakes with no purchase necessary for one entry but offer additional entries based on level of dollar purchases?
How about they can only enter in one of our stores, and they can fill out up to one entry card per day, still no purchase necessary? There is no alternate way to get this prize. Are they running an unlawful sweepstakes and how do they get by with it. If you read their rules, they have a free entry method — you can request an entry by mail.
One out of every 12 cans of nuts contains a winning code, and likewise, one of our every 12 entries they mail has a winning code. So they do have a free entry option, making it a legal sweepstakes. Is it legal for a company to have different prizes for paid and unpaid contest entrants? Pertaining to Direct Sales business. If a person who sells a product like Tupperware, for example, offers a prize if the total sales to the party qualify for a show.
We also wanted to have gift baskets that could be either auctioned or raffled off.. I see the word raffle is connected with the thought of gambling, or lottery… what do you suggest we an do? So does it violate the proof of purchase clause if there are several free ways to enter like following on FB as well as extra entries given for pre-ordering a book?
What if I want to give away discounts? Giving scratch tickets at the cash register and discounts scratched off are immediately given? No cost to them. Just the gift of money off? My question may seem out of discussion, but it is still concerning sweepstakes,raffles and lotteries. Are the event organizers responsible for disclosing where they purchased the prize? John won the grand prize in the Bingo event organized by his school alumni association.
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So dunkin donuts is doing a pull and win with the purchase of a large hot or extra large hot coffee. If you are one of many who do not drink hot coffee and drink iced, and ask for a hot cup, they will not give a pull tab cup or they pull it off before giving it to you. Can they do that, seeing as iced coffee costs more then hot coffee? Hot large is 2. Iced med is 2. Just to give you an idea. I recently saw an Instagram promotion saying I could win my money back on a purchase of a specific product from the company.
I told them it was illegal to not have a free entry. Greg, thanks for the info. It is a giveaway but the winner is responsible for the tax and license fees. All this info would be on a website. What about free game pieces that are given to customers for a Bingo game? One way we party is if there is no hostess we still give away the rewards based on sales for that week.
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For anyone who has purchased the last year I want to allow an entry for every purchase. For anyone who purchased in the month of March an additional entry. They must be a member of my fb page which currently consist of less than at the time of the drawing. I wanted to have them shares and if Someone purchased from their share? They both get in drawing.
Is this not allowed? Can you require people be present to enter, and just not let them attend the class. So if they show up during the hours of the event, can you have entry forms outside the class doors for them to enter for free? Or do you have to allow people to enter by mail? I work as a direct sales consultant and recently came up with an idea.. Just wanted to checc on your opinion.
Notably, sweepstakes in Canada, Australia, and several European countries require entrants to solve an elementary-school-level mathematical puzzle or answer a fairly simple knowledge question or solve a trivial fill-in-the-blanks guessing competition , making it in theory, at least a contest of skill in order to overcome requirements that would classify sweepstakes as a form of gambling under their country's legal definition. There are similar laws in Brazil, usually requiring an answer to an easy "giveaway" question.
In Australia, a sweepstake is known as a competition , however the technical name for a consumer competition is a trade promotion lottery. A trade promotion lottery is a free entry lottery conducted to promote goods or services supplied by a business. Unlike in the U. Companies or promoters may require a trade promotion lottery permit if the winner s are to be chosen via an element of chance, i.
No permits are required for competitions that do not involve an element of chance in determining the winner or winners. Common examples include competitions where entrants are required to submit a photo or an answer to a question in 25 words or less. Many compers those who enjoy entering competitions attend annual national conventions. In over people from the online competitions website lottos. Sweepstakes with an entry fee are considered in the UK to be lotteries under the Gambling Act Most sweepstakes in the UK are small-scale.
They are classed as work lotteries , residents' lotteries or private society lotteries and do not require a licence, provided that all the money staked is paid out as prize money. The popularity of the term "sweepstakes" may derive from the Irish Sweepstakes , which were very popular from the s to the s. There is a tradition of office sweepstakes known as office pools in the U. The winner then takes the pot. For horse racing events, the pot may be split between the horses which come first, second and third. What an American would call a "sweepstakes" a random prize draw promoting a commercial product is likely to be labelled as a "prize draw" or "competition" in the UK.
In the United States , sweepstake sponsors are very careful to disassociate themselves from any suggestion that players must pay to enter, or pay to win, since this would constitute gambling. Sweepstakes typically involve enticements to enter a consumer promotion with prizes that range from substantial wins such as cars or large sums of money to smaller prizes that are currently popular with consumers.
There should be no monetary cost to the entrant although some sweepstakes require entrants to subscribe to a promotional mailing list, potentially exposing the entrant to an increase in junk mail , spam email , or telemarketing calls and sweepstakes winners should also not be required to pay any kind of fee to receive their prizes. As an example of a state policy on sweepstakes promotions, Tennessee residents are prohibited by a policy of the Tennessee Alcoholic Beverage Commission and not a state law from entering sweepstakes online sponsored by manufacturers of wines and liquors; however, Tennessee residents may enter many of these same sweepstakes promotions by entries delivered by the US Postal Service.
Most corporate-sponsored sweepstakes promoted in the United States limit entry to US citizens, although some allow entry by legal residents of both the United States and Canada. Among the most popularly known sweepstakes in the United States were the American Family Publishers Sweepstakes now defunct , Publishers Clearing House sweepstakes, and Reader's Digest Sweepstakes , each of which strongly persuaded entrants to purchase magazine subscriptions by placing stickers on contest entry cardstock while promising multimillion-dollar annuity winners who will be "announced on TV".
All three companies eventually paid fines and penalties to a variety of states who initiated legal actions against them. Sweepstakes are frequently used by fast-food restaurants to boost business. One of the most popular has been the McDonald's Monopoly "instant-win" game-piece promotion To satisfy the "no purchase necessary" requirement, free game pieces are made available on request through the US mail. Soft drink companies also sponsor many sweepstakes, such as the Pepsi Billion Dollar Sweepstakes game and the Pepsi Stuff loyalty rewards program that allowed Pepsi drinkers to accumulate points from packages and cups and redeem them for merchandise.
Pepsi Stuff was Pepsi 's largest and most successful long-term promotion ever and it ran for many years in the US and in many countries around the world.
Other sponsors may require the submission of a UPC of a company product with provision for receiving a "free" UPC for entry into the sweepstakes drawing. Sweepstakes parlors , which began to appear in the US around , are establishments that offer chances to win cash prizes as a promotion for a product, usually either a telephone card or Internet access.
Sweepstakes must be carefully planned to comply with local laws and curtail forms of entrant fraud and abuse.