FAQ
Q: What's the difference between a Sweepstakes, Game and a Contest?
A: Sweepstakes and Games both incorporate the element of chance while a Contest incorporates the element of skill.
Q: Can a consumer be required to make a purchase to play?
A: A Game of chance must incorporate a No Purchase Necessary (or free) method of participating. A Contest may require a purchase to participate although there are a few states that prohibit that requirement.
Q: How is a winner selected in each of the three types of Promotions?
A: A random drawing is conducted in a Sweepstakes, winning Game Pieces are "seeded" or "inserted" among the non winning Game Pieces left to consumers to find a winning Game Piece. In a Contest, all the entries are judged against pre-established criteria. A photo, essay or cooking competition are all forms of Contests.
Q: When is a Promotion illegal?
A: A Promotion is illegal when chance, consideration (purchase or labor intensive requirement) and prizes are all present in a game of chance concept.
Q: When are Sponsors required to register and or bond consumer Promotions?
A: Only New York and Florida require Games of chance (not skill Contests) to be registered and bonded when the total retail value of all the prizes exceeds $5,000. Rhode Island requires chance Games offering a prize structure of $500 or more to be registered.
Q: How far in advance must a Sponsor bond and register?
A: Florida requires that filings are received no less than seven days in advance of the Promotion start date. New York and Rhode Island require 30 days but have historically accepted filing seven days in advance without penalty.
Q: Does P/S/T handle this for its clients?
A: Yes, P/S/T will take care of procuring the bonds and filing with the states.
Q: Why are Official Rules so important?
A: The Official Rules act as a binding and legal contract between consumers and the Sponsor. It is essential that they are written properly and in compliance with laws as currently interpreted and enforced.
Q: Can a Sponsor get in legal trouble if they do not comply with existing Sweepstakes lottery laws?
A: The Promotion industry is heavily regulated on both the State and Federal levels. A Sponsor that does not comply with the laws is facing significant risk.
Q: If Project Support Team administers a Promotion, do you accept responsibility on behalf of the Sponsor?
A: For the most part, yes. The Sponsor, however, must follow the recommendations of P/S/T.
Q: If a Game Piece Promotion requires a purchase (example: soda cap program, text messaging, etc.), what do you do?
A: A free Game Piece must be made available by U.S. mail.
Q: Do all prizes always get awarded?
A: In a Sweepstakes, because a random drawing is conducted, yes. In a Game, there is a chance that all the prizes will not be claimed. However, a second chance drawing is usually conducted to award any of the unclaimed prizes valued over $25.
Q: Do Sweepstakes work?
A: Sweepstakes are the most economical tool in the marketing mix. Budgets can be set and adhered to unlike many other marketing disciplines that incorporate variables such as redemption. In addition, the industry has seen a huge surge in the last ten years due to the growth of the internet. Sweepstakes also provide Sponsors the opportunity to learn something about their customers by offering a mutually beneficial relationship. Sponsors receive valuable information and consumers are provided a chance to win something. 39% of consumers name Sweepstakes as the key motivator for divulging personal information.
Q: What is the Children’s On-line Privacy Protection Act (COPPA)?
A: Per the Children's Online Privacy Protection Act (COPPA) enacted by the FTC in April 2000, you are not allowed to ask or obtain personal information online from children under the age of 13. Websites must state Sponsor's clear, prominent and easily understandable Privacy Policy and information practices.