Friday, November 20, 2009

Can you explain the differences and related legal requirements among a sweepstakes, giveaway, & contest?

Sweepstake's winners seem to be randomly selected? Contest winners are selected by judges? Giveaway? For online sweepstakes does there have to be an alternate means of entery (ie. postal)?

Can you explain the differences and related legal requirements among a sweepstakes, giveaway, %26amp; contest?
You're right, sweepstakes winners generally are selected randomly, and for that reason there can be no consideration - or financial benefit to the sponsor - for holding a sweepstake. Contests are judged, and therefore not random. That's why they can legally charge entry fees (though not all of them do). Giveaways are technically freebie offers where everyone who enters receives a prize, but many use this as a generic term for both sweepstakes and contests.





Some people believe that requiring an internet connection might be considered a form of consideration, so they offer an alternate, mail-in method of entry. Others say that the entrants must have had internet access before the start of the sweepstake to avoid this problem. I don't believe it has been tested in court, and many online sweepstakes do not offer an alternate entry method.


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