Episode 37: Is Your Giveaway Legal?!

Whether it's for the 12 days of Christmas, or holiday fun, lots of us online entrepreneurs run giveaways during the holiday season. But, 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 such as where you are running your giveaway, 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.


Things we talked about:

  • 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.
  • My free checklist! Make sure to check out my FREE checklist below to help you craft a giveaway that's legit!

Here are a few quotes:

  • (2:57) "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)."
  • (4:12) “What you need to know is that it’s of the utmost importance to not inadvertently create an ILLEGAL LOTTERY.”
  • (9:32) "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."
  • (10:43) "Also, generally speaking, anything under $500 is going to be safe under state laws."
  • (15:32) "If you are using social media, each platform like Facebook or Twitter or Instagram has promotional guidelines that you must consider if you run your giveaway using their social channel to collect entries."
  • (18:30) "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."
  • (22:10) "What should your official rules include? What is the prize, who can enter, the duration, how to enter, how to win, key phrases..."

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