NONE: Re: ONLINE-ADS>> Legal issues for running a drawing
Re: ONLINE-ADS>> Legal issues for running a drawing
ASKMGMT_at_aol.com
Wed, 19 Mar 1997 07:47:25 -0500 (EST)
Depending upon the type of prizes and the requirements to win, there can be
extensive rules on a state-by-state basis for running drawings. There are
also major differences between contests and sweepstakes.
A contest generally has requirements for a participant and is not based
solely upon chance. These types of events have tremendous legal
ramifications and should be cleared through a promotion house that
specializes in these kinds of promotions. They know the requirements and are
accustomed to managing the processes.
A sweepstakes is much less involved in terms of legalities. It is only
possible to be a sweepstakes if the only way of winning is by chance.
However, there are a few states, e.g., Wisconsin and Vermont to name a
couple, that have specific elements that may not be required of participants.
Once again, I suggest using a promotion house to sort through these
elements.
There are several well known agencies. Just look in the Sunday coupon
section of the newspaper. There are usually a couple represented there in
ads.
Lastly, it is important to ensure that using a sweepstakes will be the right
vehicle to draw attention to your program and generate some long term
increased revenue. I have seen many times when the cost of the sweepstakes
is not recouped in terms of on-going business, just because sweepstakes are
fun to do. Most participants in sweepstakes are people who enter them for
fun (continually) and are not in the least bit interested in the product that
you are trying to promote.
Many websites are trying to gain attention by using a sweepstakes. There are
so many out there now, that I think the market has already been saturated
with this kind of vehicle. They many not even be of interest to the
demographic that you are targeting. Frequently an added value program is
much more compelling to your real target than just a game of chance. Best of
luck.
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Adrienne Kramer
ASK Management
Management Consultants specializing in Marketing and Communications
ASKMgmt_at_aol.com
