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Episode 37: Is Your Giveaway Legal?!
The biggest question I always hear from business owners is that they are trying to figure out how to run a LEGAL giveaway, and it’s definitely easier than you think.
There are a lot of things to consider when you are planning out a giveaway such as; who can enter, how you collect and use data, what to post on social media, do you need giveaway terms and conditions, and what you are giving away.
- A sweepstakes vs. a lottery? What exactly is your giveaway?
- What laws govern your sweepstakes? What Federal agencies regulate sweepstakes?
- Why certain items and industries are ALWAYS off limits, for instance, alcohol, tobacco and gasoline should NEVER be included in your event.
- Consider how you collect and use your data. If you're using social media to do so make sure you're following their policies & guidelines.
- Don't get too bogged down in the legal stuff! If you're worried, the best way to ensure that all of your legal bases are covered is to use a reputable law firm to help you write official rules and ensure that you are not breaking any laws.
"A giveaway is essentially another term for sweepstakes. Sweepstakes are prize giveaways where the winners are chosen by the luck of the draw (“chance” or random are often used to explain how winners are chosen)."
"This is where the "void where prohibited" clause comes in. The statement gives you as the company blanket protection against running an illegal contest, without having to research the law in each particular state, and tailor the contest accordingly."
"My big tips: Make sure you put a link to the giveaways official rules in your link in bio, make the steps to enter really simple and clear, include the start and end date of the giveaway, and make sure to put at the bottom that its NOT sponsored by Instagram, Facebook or any other social media platform."