Virtually every business has an online presence today. Because of this, the importance of generating website traffic cannot be overstated — it is integral, and paramount to, increasing earnings. How can a company improve its visibility and attract new users to its website? One way is to set up an effective sweepstakes promotion! Please note, however, that setting up a sweepstakes promotion that complies with applicable state and federal regulations can be a complicated task. To avoid regulatory exposure and/or a consumer lawsuit, companies must be aware of the issues associated with setting up a lawful sweepstakes promotion on a website.
Elements of a Successful Website Sweepstakes Promotion
Among other things, consumer data privacy protections should be a strong priority when setting up a website-based sweepstakes promotion. Currently, there are now five states with comprehensive consumer data privacy laws, and a sixth is in the works. Further, there are additional, minimum measures that a website operator must implement in order to offer a lawful sweepstakes promotion. For example, a website must incorporate carefully tailored legal notices and disclosures, such as a comprehensive Privacy Policy, website Terms and Conditions, and a sweepstakes disclaimer. At the very least, the Privacy Policy should address the collection, use and sharing of sweepstakes entrant personal information.
Specific Provisions for Website-Based Sweepstakes Contests
As part of the initial registration process, would-be entrants to a website-based sweepstakes promotion must be required to agree to the Contest Rules, website Terms and Conditions, and Privacy Policy prior to sweepstakes entry. Further, a lawful sweepstakes promotion must also include a set of contest rules with provisions that govern eligibility, means of entry, number and type of prize(s), and assorted disclosures, among other things. Entrants may not be required to pay to enter the sweepstakes. That is, there must be an “alternative means of entry” or “AMOE.” While there is a lot to consider when setting up a sweepstakes promotion, an experienced promotions attorney will be able to make the process seamless and effective.
Consult with Experienced Website Sweepstakes Promotion Attorneys
As we have explained, there are specific laws that apply to website-based sweepstakes promotions. Due to myriad local, state and federal laws, rules and regulations, and the highly specialized issues that arise in connection with emerging technology and marketing methods, it is crucial that business owners consult with qualified attorneys when setting up a sweepstakes promotion or contest, whether through a website or otherwise.
Please note that this is only a brief overview of some of the legal issues involved in connection with offering sweepstakes and other promotional contests by and through websites.
If you are interested in learning more about this topic or require assistance with your website sweepstakes promotion campaigns, please e-mail us at info@kleinmoynihan.com, or call us at (212) 246-0900.
The material contained herein is provided for informational purposes only and is not legal advice, nor is it a substitute for obtaining legal advice from an attorney. Each situation is unique, and you should not act or rely on any information contained herein without seeking the advice of an experienced attorney.
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