October 1st, 2009
The Random Factor
Equal Opportunity = Legal Promotion
“Equal opportunity” doesn’t solely exist in the HR world. It is imperative that it exist in the Promotion world as well.
Clients often ask, “Can we select the winner from a specific state?” We answer with a resounding, “No”… and offer the following explanation…
A promotion would be considered illegal if a sponsor deliberately chose winners from a specific state rather than at random. If winner selection were handled in this manner, the sponsor would not be giving all entrants equal opportunity for a chance to win. The random factor must be in play to afford equal opportunity to all entrants for a chance to win. State lottery laws dictate that if prize, chance & consideration are all present, a promotion is considered to be a lottery and therefore deemed illegal. If one of those elements is removed, it is then considered a legal promotion.
To maintain equal opportunity in usage-based sweepstakes, if purchase entries receive additional entry weight, alternate means of entry (“amoe”) entries must receive the same. For example, a promotion that employs the following entry mechanic: “Sign up for automatic bill pay with your credit card and receive (10) entries…” must also align with an alternate means of entry, i.e. mail-in (“To enter the Sweepstakes without making a purchase & receive (10) entries, hand print your name…”), thus eliminating the element of consideration. The alternate means of entry offers everyone equal opportunity to enter the sweepstakes, without requiring purchase.
With random drawing and alternate means of entry as part of the mix, equal opportunity is ensured for all eligible entrants.
Categories: Legal, Prizes, Promotion Risks, Tips, Uncategorized
1 Comment - Leave a comment - Comments Feed
Carolyn Wilman says:
Clients really ask you that?! WOW! If they want a winner from a certain state, make the promotion only open to that state. Simple. However, not as effective from a marketing perspective.
Having the sweepstakes open to everyone is the best thing that can happen to a sponsor of a sweepstakes because they never really know who their customers are or who will viral market their products or services via word-of-mouth.
e.g. Say the sponsor is a diaper company. Yet, single 30 year-old men and 65 year old women are entering the sweepstakes. Well, what isn’t on the entry form is the single male is half of a gay couple that just adopted a baby and the older women just had her first grandchild. The profiles do not fit the sponsors typical customer demographic, but they are buying. One never really can tell who your buyers are. Assume all entrants are prospects and customers, treat them as such and sales will follow.