sweepsta kes vss w eepst akes vs. contests vs. lot ter i es · • a contest is a campai gn i n w...

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Sweepstakes vsSweepstakes vs. Contests vs. Lotteries First, understand the differences between sweepstakes and contests (which are legal promotional campaigns), and private lotteries (which are illegal under state law). • A Sweepstakes is a campaign in which entrants can win a prize based on chance. No purchase, payment, or other consideration is permitted, and the winner is picked at random. The element of consideration must not exist in a Sweepstakes. Caution: consideration is anything of value the contestant must give up to participate, monetary or nonmonetary, and can exist if the contestant must expend substantial time or effort that benefits the sponsor. For example, some states have determined that providing contact information is consideration if the information is to be used for marketing purposes. • A Contest is a campaign in which effort, skill, or merit, is required to enter to win a prize. For example, you may require people to upload a photo or video in order to enter. The winner is determined by voting or other judging criteria. The element of chance must not exist in a contest. • A Lottery requires purchase, payment, or other consideration (the contestant has to buy something, such as a ticket), chance, and a prize.Note: Private lotteries are illegal under state law. Moreover, under federal law, it is illegal for U.S. citizens to

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Page 1: Sweepsta kes vsS w eepst akes vs. Contests vs. Lot ter i es · • A Contest is a campai gn i n w hi ch effor t, ski l l , or meri t, i s r equi r ed to ent er to w i n a ... on skill

Sweepstakes vsSweepstakes vs. Contests vs. Lotteries First, understand the differences between sweepstakes and contests (which are legal

promotional campaigns), and private lotteries (which are illegal under state law).

• A Sweepstakes is a campaign in which entrants can win a prize based on chance .

No purchase, payment, or other consideration is permitted, and the winner is picked

at random. The element of consideration must not exist in a Sweepstakes. Caution:

consideration is anything of value the contestant must give up to participate,

monetary or non­monetary, and can exist if the contestant must expend substantial

time or effort that benefits the sponsor. For example, some states have determined

that providing contact information is consideration if the information is to be used for

marketing purposes.

• A Contest is a campaign in which effort, skill, or merit, is required to enter to win a

prize. For example, you may require people to upload a photo or video in order to

enter. The winner is determined by voting or other judging criteria. The element of

chance must not exist in a contest.

• A Lottery requires purchase, payment, or other consideration (the contestant has to

buy something, such as a ticket), chance , and a prize .Note: Private lotteries are

illegal under state law. Moreover, under federal law, it is illegal for U.S. citizens to

Page 2: Sweepsta kes vsS w eepst akes vs. Contests vs. Lot ter i es · • A Contest is a campai gn i n w hi ch effor t, ski l l , or meri t, i s r equi r ed to ent er to w i n a ... on skill

even participate in a foreign lottery. You may not use ShortStack to conduct a lottery.

Do not run a lottery.

Before you host your next campaign, familiarize yourself with best practices

regarding writing regulations, and then download and complete the document

(included below) to post rules and requirements specific to your campaign. Go

through the document and wherever you see [bracketed text in orange] replace the

bracketed text with details about your company, prize, and rules.

Note: If you are hosting your promotion on Facebook, you must also adhere to

Facebook’s guidelines.

Best Practices In the United States, Internet sweepstakes and contests focus on federal laws against

online gambling. Here’s what you need to know:

• Official Rules should include:

• “No Purchase Necessary”

• “Purchase does not enhance chance of winning”

• “Void where prohibited”

• Details regarding non­monetary consideration

Page 3: Sweepsta kes vsS w eepst akes vs. Contests vs. Lot ter i es · • A Contest is a campai gn i n w hi ch effor t, ski l l , or meri t, i s r equi r ed to ent er to w i n a ... on skill

• The identity of the host/promoter

• Entry procedures and beginning/ending dates, including time and time zone

• Eligibility requirements

• An explanation of all methods of entry

• A clear description of the prize(s); certain states have stricter regulations (see

examples at the end of this document)

• Date winner(s) will be chosen and notified

• Judging criteria must be clear and sponsor should be able to show how the winner

was determined based on objective criteria

• Method of selecting a winner (to avoid any appearance of impropriety, it is

recommended that sponsors avoid conducting their own drawings or determining

the winners of their own contests)

• Publicity rights regarding use of Winner’s information (Sponsor should obtain

written consent from Entrant to ensure compliance with state laws)

• Publicity rights regarding use of Participant’s information (Sponsor should obtain

written consent from Entrant to ensure compliance with state laws)

Page 4: Sweepsta kes vsS w eepst akes vs. Contests vs. Lot ter i es · • A Contest is a campai gn i n w hi ch effor t, ski l l , or meri t, i s r equi r ed to ent er to w i n a ... on skill

• Liability limitations

• Odds of winning

• Physical address, not a PO Box

• Contest/Sweepstakes sponsors must be careful about advertising prizes by using

the brand name of a prize without the consent from the trademark owner in the title.

For example, if you are giving away an Apple iPod, the contest name cannot say

“Apple” or “iPod” unless Apple was a cosponsor of the promotion or gave consent

in the contest title. However, they can list the item in the official rules as part of the

prize list.

• If the prize winner is subject to U.S. taxes, the host is required to send the winner a

1099 in January of the following year.

• It is recommended that records for the promotional campaign should be maintained

for 2 years.

State Exceptions Many states in the U.S. individually regulate promotional campaigns, especially when

prizes include alcohol, tobacco, or firearms. It is important to know that promotional

campaigns are governed by the laws and regulations of the state in which the

contestant lives. As you write your contest rules, take note that individual states

Page 5: Sweepsta kes vsS w eepst akes vs. Contests vs. Lot ter i es · • A Contest is a campai gn i n w hi ch effor t, ski l l , or meri t, i s r equi r ed to ent er to w i n a ... on skill

have individual considerations. For instance, below you will find a list of some

state­by­state examples.

IMPORTANT NOTE: This list of state examples is neither complete nor updated. It is

recommended you obtain legal guidance from an experienced attorney before

conducting a promotional campaign.

• Colorado

— Prohibits purchase requirements even if the contest winners are selected based

on skill.

• Florida

— Prize worth $5,000 or more must be bonded and registered 7 days before

sweepstakes begins. Must be able to provide a list of winners to anyone who

requests it.

• Maryland

— Prohibits purchase requirements even if the contest winners are selected based

on skill.

• Nebraska

Page 6: Sweepsta kes vsS w eepst akes vs. Contests vs. Lot ter i es · • A Contest is a campai gn i n w hi ch effor t, ski l l , or meri t, i s r equi r ed to ent er to w i n a ... on skill

— Prohibits purchase requirements even if the contest winners are selected based

on skill.

• New York

— Prize worth $5,000 or more must be bonded and registered 30 days before

sweepstakes begins. Must be able to provide a list of winners to anyone who

requests it.

• North Dakota

— Prohibits purchase requirements even if the contest winners are selected based

on skill.

• Rhode Island

— Retail outlets offering a sweepstakes with prizes valuing more than $500 must

register promotion with the state.

• Tennessee

— Prohibits sweepstakes agencies and sponsors from requiring sweepstakes prize

winners to submit to “in perpetuity” publicity releases.

• Texas

Page 7: Sweepsta kes vsS w eepst akes vs. Contests vs. Lot ter i es · • A Contest is a campai gn i n w hi ch effor t, ski l l , or meri t, i s r equi r ed to ent er to w i n a ... on skill

— Special rules apply to sweepstakes with prizes more than $50,000 such as not

automatically entering an individual in a sweepstakes because the individual has

made a purchase

• Vermont

— May not require people who request a list of sweepstakes winners to pay for

postage for the response.

— Prohibits purchase requirements even if the contest winners are selected based

on skill.

• Virginia

— Cannot require a “player” to visit a location to enter due to this being a form of

consideration that would convert an otherwise legal sweepstakes into a lottery.

• Washington

— Prohibits “unfair or deceptive acts or practices in the conduct of any trade or

commerce.”

— Must provide disclaimers and material terms and conditions in sweepstakes offer.

Customizable Official Rules

Page 8: Sweepsta kes vsS w eepst akes vs. Contests vs. Lot ter i es · • A Contest is a campai gn i n w hi ch effor t, ski l l , or meri t, i s r equi r ed to ent er to w i n a ... on skill

__ By checking here and populating the Customizable Official Rules, on behalf of

myself and on behalf of any entity for which I am acting (together referred to as

“Customer”), Customer accepts all risks and acknowledges that promotional

campaigns come with complicated and ever­changing legal regulations and

restrictions, Customer understands that it should obtain legal guidance from an

experienced attorney before conducting a promotional campaign and populating the

Customizable Official Rules, and Customer hereby agrees to hold harmless and

indemnify ShortStack and its contributors for any loss, damage, or legal liability

associated with Customer’s use of the Customizable Official Rules.

————————————————

Below is an example of rules and guidelines you could use for a social media

contest. You would replace the [orange bracketed text] with information specific to

your company and your contest.

NO PURCHASE IS NECESSARY TO ENTER OR WIN. A PURCHASE DOES NOT

INCREASE THE CHANCES OF WINNING.

1. Eligibility: This Campaign is open only to those who sign up at the [Campaign

URL] and who are [years of age or older] as of the date of entry.The Campaign is only

open to legal residents of [list eligible countries and/or states], and is void where

prohibited by law. Employees of [your company name], its affiliates, subsidiaries,

advertising and promotion agencies, and suppliers, (collectively the “Employees”),

and immediate family members and/or those living in the same household of

Page 9: Sweepsta kes vsS w eepst akes vs. Contests vs. Lot ter i es · • A Contest is a campai gn i n w hi ch effor t, ski l l , or meri t, i s r equi r ed to ent er to w i n a ... on skill

Employees are not eligible to participate in the Campaign. The Campaign is subject

to all applicable federal, state, and local laws and regulations. Void where prohibited.

2. Agreement to Rules: By participating, the Contestant (“You”) agree to be fully

unconditionally bound by these Rules, and You represent and warrant that You meet

the eligibility requirements. In addition, You agree to accept the decisions of [your

company name] as final and binding as it relates to the content of this Campaign.

3. Campaign Period: Entries will be accepted online starting on [start date, time, and

time zone] and ending [end date, time, and time zone]. All online entries must be

received by [end date, time, and time zone].

4. How to Enter: The Campaign must be entered by submitting an entry using the

online form provided at [Campaign URL]. The entry must fulfill all Campaign

requirements, as specified, to be eligible to win a prize. Entries that are incomplete or

do not adhere to the rules or specifications may be disqualified at the sole discretion

of [your company name]. Optional verbiage to include: You may enter only once. You

must provide the information requested. You may not enter more times than

indicated by using multiple email addresses, identities, or devices in an attempt to

circumvent the rules. If You use fraudulent methods or otherwise attempt to

circumvent the rules, your submission may be removed from eligibility at the sole

discretion of [your company name].

5. Prizes: The Winner(s) of the Campaign (the “Winner”) will receive [list prizes and

approximate retail value]. Actual/appraised value may differ at time of prize award.

Page 10: Sweepsta kes vsS w eepst akes vs. Contests vs. Lot ter i es · • A Contest is a campai gn i n w hi ch effor t, ski l l , or meri t, i s r equi r ed to ent er to w i n a ... on skill

The specifics of the prize shall be solely determined by [your company name]. No

cash or other prize substitution shall be permitted except at [your company name’s]

discretion. The prize is nontransferable. Any and all prize­related expenses, including

without limitation any and all federal, state, and/or local taxes, shall be the sole

responsibility of Winner. No substitution of prize or transfer/assignment of prize to

others or request for the cash equivalent by Winner is permitted. Acceptance of prize

constitutes permission for [your company name] to use Winner’s name, likeness, and

entry for purposes of advertising and trade without further compensation, unless

prohibited by law.

6. Odds: The odds of winning depend on the number of eligible entries received.

7. Winner Selection and Notification: Winner will be selected by [a random drawing or

by community vote] under the supervision of [your company name]. Winner will be

notified by [enter means of notification (e.g., email, telephone, etc.)] within five (5)

days following selection of Winner. [Your company name] shall have no liability for

Winner’s failure to receive notices due to spam, junk e­mail or other security settings

or for Winner’s provision of incorrect or otherwise non­functioning contact

information. If Winner cannot be contacted, is ineligible, fails to claim the prize within

[xx days] from the time award notification was sent, or fails to timely return a

completed and executed declaration and release as required, the prize may be

forfeited and an alternate Winner selected. Receipt by Winner of the prize offered in

this Campaign is conditioned upon compliance with any and all federal, state, and

local laws and regulations. ANY VIOLATION OF THESE OFFICIAL RULES BY WINNER

Page 11: Sweepsta kes vsS w eepst akes vs. Contests vs. Lot ter i es · • A Contest is a campai gn i n w hi ch effor t, ski l l , or meri t, i s r equi r ed to ent er to w i n a ... on skill

(AT [your company name]‘S SOLE DISCRETION) WILL RESULT IN WINNER’S

DISQUALIFICATION AS WINNER OF THE CAMPAIGN, AND ALL PRIVILEGES AS

WINNER WILL BE IMMEDIATELY TERMINATED.

8. Rights Granted by You: By entering this content (e.g., photo, video, text, etc.), You

understand and agree that [your company name], anyone acting on behalf of [your

company name], and [your company name]’s licensees, successors, and assigns,

shall have the right, where permitted by law, to print, publish, broadcast, distribute,

and use in any media now known or hereafter developed, in perpetuity and

throughout the World, without limitation, your entry, name, portrait, picture, voice,

likeness, image, statements about the Campaign, and biographical information for

news, publicity, information, trade, advertising, public relations, and promotional

purposes. without any further compensation, notice, review, or consent. Optional

verbiage for Contests: By entering this content, You represent and warrant that your

entry is an original work of authorship, and does not violate any third party’s

proprietary or intellectual property rights. If your entry infringes upon the intellectual

property right of another, You will be disqualified at the sole discretion of [your

company name]. If the content of your entry is claimed to constitute infringement of

any proprietary or intellectual proprietary rights of any third party, You shall, at your

sole expense, defend or settle against such claims. You shall indemnify, defend, and

hold harmless [your company name]from and against any suit, proceeding, claims,

liability, loss, damage, costs or expense, which [your company name] may incur,

Page 12: Sweepsta kes vsS w eepst akes vs. Contests vs. Lot ter i es · • A Contest is a campai gn i n w hi ch effor t, ski l l , or meri t, i s r equi r ed to ent er to w i n a ... on skill

suffer, or be required to pay arising out of such infringement or suspected

infringement of any third party’s right.

9. Terms & Conditions: [your company name] reserves the right, in its sole

discretion, to cancel, terminate, modify or suspend the Campaign should virus, bug,

non­authorized human intervention, fraud, or other cause beyond [your company

name]’s control corrupt or affect the administration, security, fairness, or proper

conduct of the Campaign. In such case, [your company name] may select the Winner

from all eligible entries received prior to and/or after (if appropriate) the action taken

by [your company name]. [Your company name] reserves the right, in its sole

discretion, to disqualify any individual who tampers or attempts to tamper with the

entry process or the operation of the Campaign or website or violates these Terms &

Conditions. [Your company name] has the right, in its sole discretion, to maintain the

integrity of the Campaign, to void votes for any reason, including, but not limited to:

multiple entries from the same user from different IP addresses; multiple entries from

the same computer in excess of that allowed by Campaign rules; or the use of bots,

macros, scripts, or other technical means for entering. Any attempt by an entrant to

deliberately damage any website or undermine the legitimate operation of the

Campaign may be a violation of criminal and civil laws. Should such attempt be

made, [your company name] reserves the right to seek damages to the fullest extent

permitted by law.

10. Limitation of Liability: By entering, You agree to release and hold harmless [your

company name] and its subsidiaries, affiliates, advertising and promotion agencies,

Page 13: Sweepsta kes vsS w eepst akes vs. Contests vs. Lot ter i es · • A Contest is a campai gn i n w hi ch effor t, ski l l , or meri t, i s r equi r ed to ent er to w i n a ... on skill

partners, representatives, agents, successors, assigns, employees, officers, and

directors from any liability, illness, injury, death, loss, litigation, claim, or damage

that may occur, directly or indirectly, whether caused by negligence or not, from: (i)

such entrant’s participation in the Campaign and/or his/her acceptance, possession,

use, or misuse of any prize or any portion thereof; (ii) technical failures of any kind,

including but not limited to the malfunction of any computer, cable, network,

hardware, or software, or other mechanical equipment; (iii) the unavailability or

inaccessibility of any transmissions, telephone, or Internet service; (iv) unauthorized

human intervention in any part of the entry process or the Promotion; (v) electronic

or human error in the administration of the Promotion or the processing of entries.

11. Disputes: THIS Campaign IS GOVERNED BY THE LAWS OF [your country] AND

[your state/province], WITHOUT RESPECT TO CONFLICT OF LAW DOCTRINES. As a

condition of participating in this Campaign, participant agrees that any and all

disputes that cannot be resolved between the parties, and causes of action arising

out of or connected with this Campaign, shall be resolved individually, without resort

to any form of class action, exclusively before a court located in [your state/province]

having jurisdiction. Further, in any such dispute, under no circumstances shall

participant be permitted to obtain awards for, and hereby waives all rights to,

punitive, incidental, or consequential damages, including reasonable attorney’s fees,

other than participant’s actual out­of­pocket expenses (i.e. costs associated with

entering this Campaign). Participant further waives all rights to have damages

multiplied or increased.

Page 14: Sweepsta kes vsS w eepst akes vs. Contests vs. Lot ter i es · • A Contest is a campai gn i n w hi ch effor t, ski l l , or meri t, i s r equi r ed to ent er to w i n a ... on skill

12. Privacy Policy: Information submitted with an entry is subject to the Privacy

Policy stated on the [your company name] website. To read the Privacy Policy,

[privacy policy URL] click here. Note: a privacy policy is optional, but may be

required when running a promotion on the web when using third party platforms or

when using features from social channels. Including this information makes it clear

to your users how you are going to use their information.

13. Winners List: To obtain a copy of the Winner’s name or a copy of these Official

Rules, mail your request along with a stamped, self­addressed envelope to: [your

company name] [address] [city] [state/province] [postal code] [country]. Requests

must be received no later than [date, time, timezone].

14. Sponsor: The Sponsor of the Campaign is [your company name] [address] [city]

[state/province] [postal code] [country].

15. Facebook: If you use Facebook to communicate or administer a contest or

sweepstakes, include the following: The Campaign hosted by [your company name]

is in no way sponsored, endorsed, administered by, or associated with Facebook.

16. ___ By checking here, You, the Contestant, have affirmatively reviewed, accepted,

and agreed to all of the Official Rules.

. Contests vs. Lotteries

Page 15: Sweepsta kes vsS w eepst akes vs. Contests vs. Lot ter i es · • A Contest is a campai gn i n w hi ch effor t, ski l l , or meri t, i s r equi r ed to ent er to w i n a ... on skill

First, understand the differences between sweepstakes and contests (which are legal

promotional campaigns), and private lotteries (which are illegal under state law).

• A Sweepstakes is a campaign in which entrants can win a prize based on chance . No

purchase, payment, or other consideration is permitted, and the winner is picked at random.

The element of consideration must not exist in a Sweepstakes. Caution: consideration is

anything of value the contestant must give up to participate, monetary or

non­monetary, and can exist if the contestant must expend substantial time or effort

that benefits the sponsor. For example, some states have determined that providing

contact information is consideration if the information is to be used for marketing

purposes.

• A Contest is a campaign in which effort, skill, or merit, is required to enter to win a prize. For

example, you may require people to upload a photo or video in order to enter. The winner is

determined by voting or other judging criteria. The element of chance must not exist in a

contest.

• A Lottery requires purchase, payment, or other consideration (the contestant has to buy

something, such as a ticket), chance , and a prize .Note: Private lotteries are illegal under

state law. Moreover, under federal law, it is illegal for U.S. citizens to even participate

in a foreign lottery. You may not use ShortStack to conduct a lottery. Do not run a

lottery.

Before you host your next campaign, familiarize yourself with best practices regarding writing

regulations, and then download and complete the document (included below) to post rules and

Page 16: Sweepsta kes vsS w eepst akes vs. Contests vs. Lot ter i es · • A Contest is a campai gn i n w hi ch effor t, ski l l , or meri t, i s r equi r ed to ent er to w i n a ... on skill

requirements specific to your campaign. Go through the document and wherever you see

[bracketed text in orange] replace the bracketed text with details about your company, prize,

and rules.

Note: If you are hosting your promotion on Facebook, you must also adhere to Facebook’s

guidelines.

Best Practices In the United States, Internet sweepstakes and contests focus on federal laws against online

gambling. Here’s what you need to know:

• Official Rules should include:

• “No Purchase Necessary”

• “Purchase does not enhance chance of winning”

• “Void where prohibited”

• Details regarding non­monetary consideration

• The identity of the host/promoter

• Entry procedures and beginning/ending dates, including time and time zone

Page 17: Sweepsta kes vsS w eepst akes vs. Contests vs. Lot ter i es · • A Contest is a campai gn i n w hi ch effor t, ski l l , or meri t, i s r equi r ed to ent er to w i n a ... on skill

• Eligibility requirements

• An explanation of all methods of entry

• A clear description of the prize(s); certain states have stricter regulations (see examples at the

end of this document)

• Date winner(s) will be chosen and notified

• Judging criteria must be clear and sponsor should be able to show how the winner was

determined based on objective criteria

• Method of selecting a winner (to avoid any appearance of impropriety, it is recommended that

sponsors avoid conducting their own drawings or determining the winners of their own contests)

• Publicity rights regarding use of Winner’s information (Sponsor should obtain written consent

from Entrant to ensure compliance with state laws)

• Publicity rights regarding use of Participant’s information (Sponsor should obtain written

consent from Entrant to ensure compliance with state laws)

• Liability limitations

• Odds of winning

• Physical address, not a PO Box

Page 18: Sweepsta kes vsS w eepst akes vs. Contests vs. Lot ter i es · • A Contest is a campai gn i n w hi ch effor t, ski l l , or meri t, i s r equi r ed to ent er to w i n a ... on skill

• Contest/Sweepstakes sponsors must be careful about advertising prizes by using the brand

name of a prize without the consent from the trademark owner in the title. For example, if you

are giving away an Apple iPod, the contest name cannot say “Apple” or “iPod” unless Apple was

a cosponsor of the promotion or gave consent in the contest title. However, they can list the

item in the official rules as part of the prize list.

• If the prize winner is subject to U.S. taxes, the host is required to send the winner a 1099 in

January of the following year.

• It is recommended that records for the promotional campaign should be maintained for 2

years.

State Exceptions Many states in the U.S. individually regulate promotional campaigns, especially when

prizes include alcohol, tobacco, or firearms. It is important to know that promotional

campaigns are governed by the laws and regulations of the state in which the

contestant lives. As you write your contest rules, take note that individual states

have individual considerations. For instance, below you will find a list of some

state­by­state examples.

IMPORTANT NOTE: This list of state examples is neither complete nor updated. It is

recommended you obtain legal guidance from an experienced attorney before

conducting a promotional campaign.

Page 19: Sweepsta kes vsS w eepst akes vs. Contests vs. Lot ter i es · • A Contest is a campai gn i n w hi ch effor t, ski l l , or meri t, i s r equi r ed to ent er to w i n a ... on skill

• Colorado

— Prohibits purchase requirements even if the contest winners are selected based on skill.

• Florida

— Prize worth $5,000 or more must be bonded and registered 7 days before sweepstakes

begins. Must be able to provide a list of winners to anyone who requests it.

• Maryland

— Prohibits purchase requirements even if the contest winners are selected based on skill.

• Nebraska

— Prohibits purchase requirements even if the contest winners are selected based on skill.

• New York

— Prize worth $5,000 or more must be bonded and registered 30 days before sweepstakes

begins. Must be able to provide a list of winners to anyone who requests it.

• North Dakota

— Prohibits purchase requirements even if the contest winners are selected based on skill.

• Rhode Island

Page 20: Sweepsta kes vsS w eepst akes vs. Contests vs. Lot ter i es · • A Contest is a campai gn i n w hi ch effor t, ski l l , or meri t, i s r equi r ed to ent er to w i n a ... on skill

— Retail outlets offering a sweepstakes with prizes valuing more than $500 must register

promotion with the state.

• Tennessee

— Prohibits sweepstakes agencies and sponsors from requiring sweepstakes prize winners to

submit to “in perpetuity” publicity releases.

• Texas

— Special rules apply to sweepstakes with prizes more than $50,000 such as not automatically

entering an individual in a sweepstakes because the individual has made a purchase

• Vermont

— May not require people who request a list of sweepstakes winners to pay for postage for the

response.

— Prohibits purchase requirements even if the contest winners are selected based on skill.

• Virginia

— Cannot require a “player” to visit a location to enter due to this being a form of consideration

that would convert an otherwise legal sweepstakes into a lottery.

• Washington

Page 21: Sweepsta kes vsS w eepst akes vs. Contests vs. Lot ter i es · • A Contest is a campai gn i n w hi ch effor t, ski l l , or meri t, i s r equi r ed to ent er to w i n a ... on skill

— Prohibits “unfair or deceptive acts or practices in the conduct of any trade or commerce.”

— Must provide disclaimers and material terms and conditions in sweepstakes offer.

Customizable Official Rules __ By checking here and populating the Customizable Official Rules, on behalf of

myself and on behalf of any entity for which I am acting (together referred to as

“Customer”), Customer accepts all risks and acknowledges that promotional

campaigns come with complicated and ever­changing legal regulations and

restrictions, Customer understands that it should obtain legal guidance from an

experienced attorney before conducting a promotional campaign and populating the

Customizable Official Rules, and Customer hereby agrees to hold harmless and

indemnify ShortStack and its contributors for any loss, damage, or legal liability

associated with Customer’s use of the Customizable Official Rules.

————————————————

Below is an example of rules and guidelines you could use for a social media

contest. You would replace the [orange bracketed text] with information specific to

your company and your contest.

NO PURCHASE IS NECESSARY TO ENTER OR WIN. A PURCHASE DOES NOT INCREASE

THE CHANCES OF WINNING.

Page 22: Sweepsta kes vsS w eepst akes vs. Contests vs. Lot ter i es · • A Contest is a campai gn i n w hi ch effor t, ski l l , or meri t, i s r equi r ed to ent er to w i n a ... on skill

1. Eligibility: This Campaign is open only to those who sign up at the [Campaign URL] and who

are [years of age or older] as of the date of entry.The Campaign is only open to legal residents

of [list eligible countries and/or states], and is void where prohibited by law. Employees of [your

company name], its affiliates, subsidiaries, advertising and promotion agencies, and suppliers,

(collectively the “Employees”), and immediate family members and/or those living in the same

household of Employees are not eligible to participate in the Campaign. The Campaign is

subject to all applicable federal, state, and local laws and regulations. Void where prohibited.

2. Agreement to Rules: By participating, the Contestant (“You”) agree to be fully unconditionally

bound by these Rules, and You represent and warrant that You meet the eligibility

requirements. In addition, You agree to accept the decisions of [your company name] as final

and binding as it relates to the content of this Campaign.

3. Campaign Period: Entries will be accepted online starting on [start date, time, and time zone]

and ending [end date, time, and time zone]. All online entries must be received by [end date,

time, and time zone].

4. How to Enter: The Campaign must be entered by submitting an entry using the online form

provided at [Campaign URL]. The entry must fulfill all Campaign requirements, as specified, to

be eligible to win a prize. Entries that are incomplete or do not adhere to the rules or

specifications may be disqualified at the sole discretion of [your company name]. Optional

verbiage to include: You may enter only once. You must provide the information requested. You

may not enter more times than indicated by using multiple email addresses, identities, or

devices in an attempt to circumvent the rules. If You use fraudulent methods or otherwise

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attempt to circumvent the rules, your submission may be removed from eligibility at the sole

discretion of [your company name].

5. Prizes: The Winner(s) of the Campaign (the “Winner”) will receive [list prizes and approximate

retail value]. Actual/appraised value may differ at time of prize award. The specifics of the prize

shall be solely determined by [your company name]. No cash or other prize substitution shall be

permitted except at [your company name’s] discretion. The prize is nontransferable. Any and all

prize­related expenses, including without limitation any and all federal, state, and/or local taxes,

shall be the sole responsibility of Winner. No substitution of prize or transfer/assignment of prize

to others or request for the cash equivalent by Winner is permitted. Acceptance of prize

constitutes permission for [your company name] to use Winner’s name, likeness, and entry for

purposes of advertising and trade without further compensation, unless prohibited by law.

6. Odds: The odds of winning depend on the number of eligible entries received.

7. Winner Selection and Notification: Winner will be selected by [a random drawing or by

community vote] under the supervision of [your company name]. Winner will be notified by

[enter means of notification (e.g., email, telephone, etc.)] within five (5) days following selection

of Winner. [Your company name] shall have no liability for Winner’s failure to receive notices

due to spam, junk e­mail or other security settings or for Winner’s provision of incorrect or

otherwise non­functioning contact information. If Winner cannot be contacted, is ineligible, fails

to claim the prize within [xx days] from the time award notification was sent, or fails to timely

return a completed and executed declaration and release as required, the prize may be forfeited

and an alternate Winner selected. Receipt by Winner of the prize offered in this Campaign is

conditioned upon compliance with any and all federal, state, and local laws and regulations.

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ANY VIOLATION OF THESE OFFICIAL RULES BY WINNER (AT [your company name]‘S

SOLE DISCRETION) WILL RESULT IN WINNER’S DISQUALIFICATION AS WINNER OF THE

CAMPAIGN, AND ALL PRIVILEGES AS WINNER WILL BE IMMEDIATELY TERMINATED.

8. Rights Granted by You: By entering this content (e.g., photo, video, text, etc.), You

understand and agree that [your company name], anyone acting on behalf of [your company

name], and [your company name]’s licensees, successors, and assigns, shall have the right,

where permitted by law, to print, publish, broadcast, distribute, and use in any media now known

or hereafter developed, in perpetuity and throughout the World, without limitation, your entry,

name, portrait, picture, voice, likeness, image, statements about the Campaign, and

biographical information for news, publicity, information, trade, advertising, public relations, and

promotional purposes. without any further compensation, notice, review, or consent. Optional

verbiage for Contests: By entering this content, You represent and warrant that your entry is an

original work of authorship, and does not violate any third party’s proprietary or intellectual

property rights. If your entry infringes upon the intellectual property right of another, You will be

disqualified at the sole discretion of [your company name]. If the content of your entry is claimed

to constitute infringement of any proprietary or intellectual proprietary rights of any third party,

You shall, at your sole expense, defend or settle against such claims. You shall indemnify,

defend, and hold harmless [your company name]from and against any suit, proceeding, claims,

liability, loss, damage, costs or expense, which [your company name] may incur, suffer, or be

required to pay arising out of such infringement or suspected infringement of any third party’s

right.

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9. Terms & Conditions: [your company name] reserves the right, in its sole discretion, to cancel,

terminate, modify or suspend the Campaign should virus, bug, non­authorized human

intervention, fraud, or other cause beyond [your company name]’s control corrupt or affect the

administration, security, fairness, or proper conduct of the Campaign. In such case, [your

company name] may select the Winner from all eligible entries received prior to and/or after (if

appropriate) the action taken by [your company name]. [Your company name] reserves the

right, in its sole discretion, to disqualify any individual who tampers or attempts to tamper with

the entry process or the operation of the Campaign or website or violates these Terms &

Conditions. [Your company name] has the right, in its sole discretion, to maintain the integrity of

the Campaign, to void votes for any reason, including, but not limited to: multiple entries from

the same user from different IP addresses; multiple entries from the same computer in excess of

that allowed by Campaign rules; or the use of bots, macros, scripts, or other technical means for

entering. Any attempt by an entrant to deliberately damage any website or undermine the

legitimate operation of the Campaign may be a violation of criminal and civil laws. Should such

attempt be made, [your company name] reserves the right to seek damages to the fullest extent

permitted by law.

10. Limitation of Liability: By entering, You agree to release and hold harmless [your company

name] and its subsidiaries, affiliates, advertising and promotion agencies, partners,

representatives, agents, successors, assigns, employees, officers, and directors from any

liability, illness, injury, death, loss, litigation, claim, or damage that may occur, directly or

indirectly, whether caused by negligence or not, from: (i) such entrant’s participation in the

Campaign and/or his/her acceptance, possession, use, or misuse of any prize or any portion

thereof; (ii) technical failures of any kind, including but not limited to the malfunction of any

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computer, cable, network, hardware, or software, or other mechanical equipment; (iii) the

unavailability or inaccessibility of any transmissions, telephone, or Internet service; (iv)

unauthorized human intervention in any part of the entry process or the Promotion; (v) electronic

or human error in the administration of the Promotion or the processing of entries.

11. Disputes: THIS Campaign IS GOVERNED BY THE LAWS OF [your country] AND [your

state/province], WITHOUT RESPECT TO CONFLICT OF LAW DOCTRINES. As a condition of

participating in this Campaign, participant agrees that any and all disputes that cannot be

resolved between the parties, and causes of action arising out of or connected with this

Campaign, shall be resolved individually, without resort to any form of class action, exclusively

before a court located in [your state/province] having jurisdiction. Further, in any such dispute,

under no circumstances shall participant be permitted to obtain awards for, and hereby waives

all rights to, punitive, incidental, or consequential damages, including reasonable attorney’s

fees, other than participant’s actual out­of­pocket expenses (i.e. costs associated with entering

this Campaign). Participant further waives all rights to have damages multiplied or increased.

12. Privacy Policy: Information submitted with an entry is subject to the Privacy Policy stated on

the [your company name] website. To read the Privacy Policy, [privacy policy URL] click here.

Note: a privacy policy is optional, but may be required when running a promotion on the web

when using third party platforms or when using features from social channels. Including this

information makes it clear to your users how you are going to use their information.

13. Winners List: To obtain a copy of the Winner’s name or a copy of these Official Rules, mail

your request along with a stamped, self­addressed envelope to: [your company name] [address]

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[city] [state/province] [postal code] [country]. Requests must be received no later than [date,

time, timezone].

14. Sponsor: The Sponsor of the Campaign is [your company name] [address] [city]

[state/province] [postal code] [country].

15. Facebook: If you use Facebook to communicate or administer a contest or sweepstakes,

include the following: The Campaign hosted by [your company name] is in no way sponsored,

endorsed, administered by, or associated with Facebook.

16. ___ By checking here, You, the Contestant, have affirmatively reviewed, accepted, and

agreed to all of the Official Rules.