![]() ![]() United States Department of Justice (DOJ).Federal Communications Commission (FCC).Sweepstakes are regulated nationally and by state by the following organizations: Winners are required to pay taxes on prizes they win.You can enter the sweepstakes without buying a product or service. Prize + consideration = legal contest (in most jurisdictions)Īll sweepstakes in the United States must meet the following regulations:. ![]() Prize + consideration + chance = illegal lottery or gambling.Keep in mind, consideration can mean anything of value, including a fee or even a significant effort (i.e., time spent shooting/submitting a photo, etc.) To avoid being classified as an illegal lottery in any state, your promotion can only have 2 of these 3 elements: prize, chance and consideration. Only states can hold lotteries, so all private lotteries are illegal. In a lottery, winners are chosen at random, but in order to enter, the participant must pay. In a contest, the winners’ entries are usually judged and are based on a skill or criteria. In a sweepstakes, winners are chosen randomly from all participants. First, it helps to understand the difference between a sweepstakes, contest and lottery. ![]()
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