Employee incentive programs can have a very positive effect on employees output, efficiency and enthusiasm with respect to their jobs. However, there are a number of aspects of these programs that should be reviewed by lawyers who have experience with incentive programs and the application of state and federal sweepstakes and contest laws. READ MORE

Our popular Thompson Coburn Sweepstakes Creator program has been updated to make it even easier for sponsors to describe their plans for sweepstakes and contests so that we can prepare draft official rules for them quickly and efficiently. READ MORE

To entice customers to complete survey questions, recently many companies have switched from discounts or coupons to sweepstakes as a survey incentive, especially promotions that offer cash prizes. READ MORE

The official rules for sweepstakes and contests should contain all of the material details of the promotion, which includes key information pertaining to the value of the prizes. Sponsors should keep this in mind when preparing official rules. READ MORE

Sponsors can prepare for this situation in advance by including provisions in the official rules that cover the possibility that this may occur. READ MORE

Late last year, a new Missouri law went into effect that allows banks and credit unions to sponsor certain savings promotion programs for their customers. Under these programs, by opening a new savings account or depositing a specified amount of money into an account that is already open, customers will have a chance to win prizes. READ MORE

Many people who enter the sweepstakes (as well as some Sponsors) assume that the winner must pay taxes on the amount of the prize’s ARV. However, that is not correct. READ MORE

As most readers of this blog know, a contest is quite different than a sweepstakes. Sweepstakes are games of chance. The winners are selected at random and don’t have to have any particular knowledge or skill – just good luck. READ MORE

As most of the readers of this blog already know, a sweepstakes or contest that contains a prize, consideration, and chance may be found to be an illegal form of gambling in most states. For that reason, it is important to eliminate one of these elements of gambling if you intend to create a legal promotion. READ MORE

As a follow-up to our posting on September 17, 2015, and in response to questions we have received from several of our readers, I wanted to clarify that the Federal Communication Commission’s (“FCC”) revision to its contest rules did not go into effect immediately after its September 17 meeting. READ MORE

As we anticipated in our most recent posting, the Federal Communication Commission this morning made a substantial change to its Contest Rules. In a press release today, the Federal Communications Commission (FCC) announced the adoption of new Broadcast Contest Rules “that allow broadcasters to disclose contest rules online as an alternative to broadcasting them over the air.” READ MORE

The Federal Communication Commission may be on the verge of permitting broadcasters to present sweepstakes and contest rules online, rather than during the on-air description of the promotion. The FCC’s agenda for its open meeting on September 17, 2015, lists as one of the two subjects to be discussed: “Modernizing contest rules. READ MORE

According to the Edmonton Sun newspaper, Nigerian-born Richard Mmah Chukwu, a resident of Edmonton, was recently convicted of implementing a multi-million dollar sweepstakes scam. Chukwu was found guilty in the Canadian Provincial Court in Edmonton of using the mail to defraud and laundering the money received from the scam. READ MORE

I have never understood why otherwise sane people would want to enter an Ironman triathlon. An Ironman requires you to swim 2.4 miles, bike 112 miles, and then run a 26.2 marathon, all within 17 hours. READ MORE

Over the past 18 years, I have been very fortunate to represent several of what I call “Mega Sponsors” of sweepstakes and contests. My definition of a Mega Sponsor is a company that sponsors more than 50 sweepstakes or contests in a year. READ MORE

Quite often a company will see an opportunity to team with another company to create a sweepstakes or contest that will benefit both of them individually. For example, a manufacturer of insect repellent and the owner of a fishing resort both target the same customers but are not competitors. READ MORE

On February 11, 2015, the Federal Trade Commission announced that it had accepted a $9.5 million settlement in a case brought against a sweepstakes operator for violating a previous FTC order. The settlement also permanently prohibits the defendant, Crystal Ewing, from direct mail marketing. READ MORE

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.” READ MORE

“How did we have sweepstakes before Facebook?” That question, which I heard during a call last week, summarizes the tremendous impact that social media has had on the use of sweepstakes and contests. READ MORE

One little-understood aspect of sweepstakes law are surety bonds, which are required to conduct sweepstakes in New York and Florida. For more insight on why sweepstakes sponsors need bonds and how the bonding process works, I turned to Marcia Cesafsky, a highly experienced bond broker who serves as Senior Broker of Specialty Surety for Aon Risk Solutions. READ MORE

The FCC’s Enforcement Bureau has brought a number of cases against broadcasters who conduct or advertise a contest on air. These cases range from failure to accurately disclose the end date for a sweepstakes, to a station’s employee rigging a contest so that his friends and family would win. READ MORE

Our recent post about the possibility that the Federal Communications Commission will no longer require broadcasters to disclose contest rules in their advertisements brought several questions from readers. Most of the questions were about the FCC regulations and enforcement activities. Here is a brief overview of the two major components of the FCC’s Contest Rule. READ MORE

Illinois Governor Pat Quinn recently signed into law the Poker Run law, which ended a two-year crusade to make it easier to use poker runs to raise money for charities. Poker Runs typically are events where people on motorcycles, bicycles or other vehicles travel to five or more different locations in a course set by the run’s sponsor. READ MORE

Anyone who watches television or listens to the radio has heard a fast-talking announcer race through the abbreviated rules for a sweepstakes or contest. Or perhaps you’ve seen a copy of the official rules for only a second or two in a microscopic font size on your television screen. READ MORE

Nearly every year, complaints about sweepstakes crop up among the top 10 complaints received by the Federal Trade Commission. Recently I received a call from a number which I did not recognize. The woman on the line told me her name was Louise and she asked me if I could help her. READ MORE

Sponsors of sweepstakes and contests need to be especially careful to protect all personal private information they receive from entrants in the promotions they sponsor. This is a lesson a radio station in Oregon learned earlier this year. READ MORE

My goal with the Sweepstakes Law Blog has always been to cut through those ambiguities and provide meaningful information about an area of law that affects innumerable companies, nonprofits, and marketing and advertising organizations. READ MORE

Last week, The New York Times reported that General Mills added language to its website notifying its customers that if they downloaded a coupon, joined the company’s online community on places like Facebook, or entered a sweepstakes or contest sponsored by General Mills, they would give up their right to sue the company. READ MORE

Thus far, Facebook has not strongly enforced its promotion guidelines. However, losing the opportunity to have your sweepstakes or contest on Facebook could be a severe penalty to pay for not complying with the rules. READ MORE

Are you involved with a charity or nonprofit that raises money by selling raffle tickets or holds poker tournaments or casino nights to fund operations? Although your charity or nonprofit may be using the proceeds to fund programs for the less fortunate (and may ultimately be of tremendous value to society), the activities themselves may be considered illegal gambling in many instances and therefore prohibited by state and federal law. READ MORE

A partner at Thompson Coburn for more than 15 years, Hap focuses his practice on a broad range of corporate and transactional matters. He represents a wide variety of clients, including companies in the gaming industry. READ MORE

Because sweepstakes and contests are such a popular marketing strategy, many industries develop promotions specifically tied to their products. For the world of sports trading cards, one popular promotion is the “box break.” READ MORE

When I hear the words “grab bag,” I think about stores that used to stock plain wrapped packages labeled as either for “boys” or “girls." For a dollar, you could choose one of these packages without knowing what it contained. READ MORE

“Does your dad have Alzheimer’s or something?” “No, he just believes what he is told is true.” “That’s too bad.” READ MORE

You couldn’t live in the United States very long without at some point seeing abbreviated rules for a sweepstakes. They are usually found in the fine print at the bottom of an ad, sign, email message, bottle top, or banner, and almost always begin with the words “NO PURCHASE NECESSARY.” READ MORE

If you create sweepstakes or contests, you understand that having a comprehensive set of official rules is essential. But what about a contest that is part of an incentive program for a company’s employees, dealers, or distributors? READ MORE

Maine has repealed its statute that requires registration and licensing of commercial co-ventures. Effective on October 8, 2013, co-venturers will no longer be required to obtain a license to conduct a commercial co-venture in Maine. READ MORE

This week we’ve been talking with Sandra Grauschopf, a freelance writer and sweepstakes expert who manages About.com’s sweepstakes site and its forum for avid “sweepers.” In Part One and Part Two of this interview, Sandra gave us a variety of unique insights on her favorite types of promotions, and the most frequent mistakes she sees companies making in their efforts to market sweepstakes to potential customers. READ MORE

Today we’re continuing our conversation with Sandra Grauschopf, About.com’s resident expert on all topics related to sweepstakes and contests. Sandra manages the site’s forum for avid “sweepers” and also consults with companies sponsoring promotions. READ MORE

The sweepstakes world can be pretty evenly divided into two parts: The companies sponsoring sweepstakes, and the consumers who participate in them. Rarely do you have someone with a foot in both worlds, but Sandra Grauschopf does just that. READ MORE

One of my favorite aspects of my practice is how it has connected me to fantastic attorneys and businesses around the globe. More and more, sweepstakes and contests are global in nature. READ MORE

Since our first post in 2011, we at the Sweepstakes Law Blog have been honored and delighted to bring you news and information on all legal aspects of contests, sweepstakes, and other promotions. Our readership has only grown over the last two years, and I look forward to tackling more sweepstakes topics in the months to come. READ MORE

Early in her career, Taylor Swift was a spokesperson for one of our clients. I drafted the official rules for several contests that were used for her concerts and appearances at the client’s sponsored events. (I am secretly convinced that it was those contest rules that lead to her phenomenal success a singer.) READ MORE

If sweepstakes law had Ten Commandments, the first would be “thou shall not require anyone to make a purchase in order to enter a sweepstakes.” Doing so could violate the gambling laws in virtually every state in the country. READ MORE

Clients occasionally ask me to create official rules for a sweepstakes or contest that will be conducted in the U.S. and Canada, or in Canada alone. That’s when I contact counsel in Canada who I know have up-to-date experience with Canadian sweepstakes and contest laws. READ MORE

Once again, a large retailer has been charged with violating New York state law by failing to properly inform customers that they could enter a sweepstakes without having to make a purchase. This time it was The Great Atlantic and Pacific Teas Company. READ MORE

Most people would think that giving the prizes away in a sweepstakes or contest would be the easiest and most enjoyable part of being a sponsor. While in most instances that is correct, there are times when giving a prize away can be very difficult or maybe even impossible. READ MORE

On May 6, 2013, the FTC unanimously decided that the revised Children’s Online Privacy Protection Act (COPPA) will go into effect on July 1, 2013, as announced last December. Several industry organizations had asked the Commission to postpone the implementation date because the FTC had not issued updated guidelines for the revised rules. READ MORE

Effective April 10, 2013, the state of Florida made changes to its Game Promotion Statute. The changes were made partly in response to the state’s recent ban of so-called Internet sweepstakes cafes. READ MORE

It might not occur to you to think about civil rights act compliance when planning an in-store or retail promotion – but that’s just what the state of California requires. The Unruh Civil Rights Act is a California statute that specifically prohibits discrimination based on sex, race, color, religion, ancestry, national origin, disability, medical condition, marital status, or sexual orientation. READ MORE

Internet and mobile advertising is subject to the same rules as anything else, the Federal Trade Commission recently assured us in a detailed 53-page booklet. To be fair, online advertising is subject to ordinary advertising rules. But there are always twists to how ordinary rules are applied online. READ MORE

I thought I’d take a break from our Sweepstakes Boot Camp series to look back at the most popular Sweepstakes Law Blog posts over the last year. I ran the analytics on our site, and the results are illuminating. READ MORE

When someone wins a trip in a sweepstakes or contest, they usually expect that the prize will be for two people so they can bring a travel companion along on their journey. If your promotion requires winners to fly solo, you need to make that very clear in the rules and any accompanying advertisements or other promotions. READ MORE

Part 1 of this series discussed how important it is to have contest insurance if the promotion has an expensive prize. It also warned that there are scammers who will sell you insurance but refuse to pay if someone wins the contest. READ MORE

Recently I have helped several clients with contests that seemingly required entrants to do the impossible to win a prize. One promotion required contestants to guess a six-digit code that would open a safe. READ MORE

“Win a trip to Tahiti.” “Travel to a NASCAR Race.” “You May Win a Fishing Trip to Canada.” “Win a Trip to Outer Space on the Virgin Galactic.” All of these titles are guaranteed to attract attention, particularly that last option, which could send your contest entrants over the moon with excitement. READ MORE

The video-based social media site Vine is less than a month old, so I haven’t seen any contests or sweepstakes crop up, but it’s only a matter of time until companies take advantage of this inventive, highly visual social media application as a platform for marketing their sweepstakes. READ MORE

A picture is worth a thousand words, but a picture of your customers using your product may be worth thousands of new buyers. In the past, photo contests usually cropped up as “cutest baby” or “best picture of the year” competitions. READ MORE

How much does the type of prize affect the popularity of a sweepstakes? I believe it can make a huge difference, even if the alternative prizes have the same value. READ MORE

The Federal Trade Commission released its long-awaited amendments to the Children’s Online Privacy Protection Act (COPPA) rules on Dec. 19, 2012. Anyone who creates or reviews sweepstakes and contests involving children should be aware of these changes. READ MORE

If you missed our October 2012 webinar on sweepstakes law, the entire presentation is now available to live stream. This one-hour session, "Sweepstakes, The Essentials: What You Need to Know,” provides a great overview of the legal issues surrounding sweepstakes, contests, and other type of promotions. READ MORE

Fitness boot camps are all the rage these days. At these grueling workouts, participants run sprints, flip tractor tires and strain through push-ups, all with a red-faced “drill sergeant” screaming in their face. READ MORE

Season's greetings and happy new year! READ MORE

Pinterest’s guidelines caution companies that many of these requirements vary from place to place. They also urge promotions sponsors to work with a lawyer to make sure they are in compliance. READ MORE

Each sweepstakes is vulnerable to litigation. The number of entries or the value of prizes matters not. So don’t think your modest sweepstakes or contest is immune from a disgruntled entrant who knows her way to the courthouse steps. READ MORE

Commercial co-ventures, or cause marketing, as it is sometimes called, generally involves an arrangement between a business and charitable organization to sell a product for the mutual benefit of both parties. READ MORE

“Swept Away" is a two-page comic that follows the colorful misadventures of a marketing team that makes a questionable choice on their official rules and ends up paying the price (literally). READ MORE

Broadly defined, “vote farming” involves contest entrants launching broad social media or online “campaigns” with the goal of soliciting votes from strangers and winning the contest. READ MORE

Since the late 1990s, California law has prohibited producers and suppliers of beer, wine, and spirits from conducting sweepstakes or contests in California. It was the only state in the nation to prohibit promotions by alcoholic beverage manufacturers. READ MORE

Under Rhode Island law, any game, contest or other promotion offering the opportunity to win prizes valued over $500 must be registered with the secretary of state if the promotion takes place in a retail establishment. READ MORE

Promoting the sweepstakes via the U.S. Postal Service triggers application of the Deceptive Mail Prevention and Enforcement Act (DMPEA) which contains a sizeable list of items that must be included in the sweepstakes. READ MORE

Any businesses that promote sweepstakes should be just as vigilant about double-checking all elements of their promotions before releasing them to the general public. To that end, I’ve created a checklist of 12 of the most important things to look for in these types of promotions. READ MORE

It's been a real pleasure to bring you information, news and legal commentary on all things related to sweepstakes law. READ MORE

Modifying a company-wide sweepstakes allows the local sponsor to tailor the promotion to its area, but it also creates the opportunity for something to go awry. READ MORE

When I saw an ad for a new Mexican restaurant that opened near my office, I thought about trying it. When I received a 10% off coupon in the mail, I thought about it again. But when my brother told me it was now his favorite restaurant, I went there for lunch on that very same day. READ MORE

This week we’ve been chatting with Liz Compton, the chief of the Bureau of Compliance at the Florida Department of Agriculture and Consumer Services. READ MORE

In yesterday’s post, we met Liz Compton, the chief of the Bureau of Compliance at the Florida Department of Agriculture and Consumer Services. READ MORE

Florida is a recognized leader in the development and enforcement of sweepstakes laws and regulations in the United States. READ MORE

In sports, as in sweepstakes: Sometimes trying to do the right thing at the wrong time can lead to trouble. READ MORE

Companies beware the wrath of a consumer with social media savvy and a serious axe to grind. READ MORE

The IRS and state treasurers don’t care who wins the prize because they are guaranteed to receive a share of virtually every prize awarded. READ MORE

“Like” it, “poke” it, but don’t post your latest sweepstakes on Facebook without some serious thought. Your contest could be violating the site’s promotions rules. READ MORE

For the most part almost anything can serve as a prize. But several categories of items may be illegal or so closely regulated that the related complications of offering them may prevent their use as prizes. READ MORE

Each year the FTC issues a report that categorizes the thousands of complaints it received from consumers in the previous year. The “promotions for free prizes, sweepstakes and lotteries” category is No. 3 on this year’s list, beating out 27 other types of complaints. In fact, the sweepstakes category been ranked in the Top 10 since the list was created in 1999. READ MORE

This decision sends a clear message to anyone sponsoring a sweepstakes or contest in Canada (and particularly in Quebec) that promotions such as this must not deceive consumers. READ MORE

Because of the many technological changes and the increase in use of the Internet by young children since 2000, the FTC decided last year to review the Rule to see if it needed to be amended. READ MORE

COPPA went into effect in April 2000. The law is designed to give parents control over the information that is collected online from their children. READ MORE

People generally understand they have to give up their names and contact information when entering a sweepstakes or contest. How else can they get their hands on that widescreen TV or trip to Aruba? READ MORE

Operating in accordance with the rules and alerting entrants to the material terms of the sweepstakes or contest is sound advice when creating any sweepstakes or contest. READ MORE

Three elements must be present — chance, prize, and consideration — for a sweepstakes to be illegal. In most instances, sweepstakes sponsors can avoid concerns about illegal gambling by eliminating consideration. READ MORE

Businesses use the Internet to host promotions because they increase publicity about their products and provide the email addresses of potential customers. Those three advantages are as desirable to political campaigns as they are to businesses. READ MORE

There are three states that require certain types of sweepstakes be registered before they can be implemented in their state. These states’ regulations include significant fines for companies that fail to comply. READ MORE

Virtually all state laws define illegal gambling as having three basic elements – prize, chance and consideration. The job of sweepstakes creators is to eliminate one or more of these elements from every sweepstakes they prepare. READ MORE

As a sweepstakes attorney, one of the most frequent questions I’m asked is, “What is the difference between a sweepstakes and a contest?” The short answer: Lots. READ MORE

The children’s animated movie “Rango,” about an adventurous lizard voiced by Johnny Depp, raked in $245 million worldwide. But a vaguely-worded sweepstakes advertisement touting the film’s DVD release recently landed its distributor Paramount Pictures in some hot water. READ MORE