Understand the Rules for Contests

Contests can be a great way to engage consumers and create publicity for your business, and social media makes it easier than ever to promote a contest to a broad audience. However, there is more to setting up a successful promotion than brainstorming a creative competition and selecting an enticing prize. Before inviting anyone to enter a contest, understand that contests (and, to an even greater degree, sweepstakes) are governed by federal and state laws that control how contests are advertised and administered, participants can be engaged, winners selected, and how consumer information is treated.

Be sure to check applicable regulations before offering any contest, even one offering a prize of only small or nominal value. If you have any questions about contest rules and administration, Sterne Kessler’s advertising practice advises clients on how to administer and promote your contest so as to comply with applicable rules and regulations.

This article appeared in the May 2014 issue of MarkIt to Market. To view our past issues, as well as other firm newsletters, please click here.