How to Use Contests, Sweepstakes, and Giveaways as Marketing Tools - While Staying Within the Law
by NicoleD, Former Moderator
- Created: March 23, 2010, 10:18 pm
- Updated: February 11, 2011, 10:01 am
In a tough economy, small businesses need to get creative in order to : The concept behind a legitimate contest is that winners are selected purely by chance - meaning, customers don't have to pay or buy something to either enter into the contest or improve their odds of winning. This includes requiring customers to pay taxes or shipping fees to claim their "prize." An exception to this rule is a skills-based contest - if your contest prizes are awarded based on a skill, knowledge, or talent (like in a trivia contest or singing competition), you may legally require participants to make a purchase for entry.
Identify your business: If you are sponsoring a contest, make sure that your customers can clearly identify your business's name and contact information prominently, and offer your customers a clear and easy way to remove themselves from your contest solicitation.
Remember the small print: Be clear and upfront about the terms, conditions, rules of entry, and odds of winning the promotion.
Be truthful about endorsements: It is illegal to misrepresent endorsement or ties to well-known organizations and government agencies.
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