Legal Question in Technology Law in South Carolina
What are the procedures, laws or rules for a national giveaway.
I want to promote my product and have decided that I will giveaway several prizes for customers that purchase any of our merchandise. Upon purchase of merchandise the customer will be entered into the giveaway and will receive a number for the drawing. Is this legal? Are there specific procedures, rules or laws that I need to follow and is it different for every state? Where can I find the legal language for the rules that protects myself and my client? We will use the internet to advertise the giveaway, are there internet laws that apply?
1 Answer from Attorneys
Re: What are the procedures, laws or rules for a national giveaway.
This is a tricky area, because it depends largely on state laws against gambling and "games of chance." On the Internet, you pretty much have to worry about all 50 states. At least one court held that even requiring the use of a postage stamp to turn in an entry was enough to violate its law. The red flags go out when you say customers must purchase merchandise to enter. An option for "no purchase necessary" entries is generally going to be necessary to avoid prohibitions on requiring anything of value to be paid for a chance to win.
I suggest you go to the website of law firm I used to be associated with, Arent Fox, and search for "sweepstakes", and you will find a number of articles and basic guidance, with which you might then determine whether to hire a lawyer to help navigate these risky waters. The URL for the search page is http://arentfox.com/search/
Good luck
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