Giveaways and sweepstakes are widely used by brands to increase engagement, grow audiences, and promote products or services. However, improperly structured giveaway entry requirements can expose a brand to regulatory risk, platform enforcement, and consumer complaints. Clear, compliant entry rules are essential to ensuring that a promotion is lawful and enforceable.
This guide explains how brands can legally structure giveaway entry rules, including how to offer an alternate means of entry (AMOE), how to handle purchase and no-purchase entry methods, how social media platforms affect entry requirements, and how to set lawful age and residency eligibility criteria.
Every giveaway must include clearly defined entry requirements that explain who is eligible to enter, how to enter, and how winners are selected. These disclosures are required to distinguish a lawful sweepstakes or contest from an illegal lottery.
Under U.S. law, a promotion may be considered an illegal lottery if it includes all three of the following elements:
If a giveaway requires a purchase, payment, or other form of consideration without a free alternative, it may violate state and federal law. This is why properly drafted entry requirements and free entry options are critical. See: Is It Illegal to Require a Purchase to Enter a Giveaway?
Giveaway entry rules should clearly and conspicuously disclose all material terms, including:
The Federal Trade Commission requires that material terms of consumer promotions be disclosed clearly and not in a misleading manner. Entry rules should be accessible before entry, typically through a link to official rules hosted on the brand’s website.
A foundational rule of U.S. sweepstakes law is that no purchase or payment may be required to enter or win. To eliminate consideration, brands must provide a free alternate means of entry (AMOE).
Failure to offer a legitimate AMOE is one of the most common legal issues encountered in sweepstakes audits and enforcement actions. For specific guidance, see: Avoid Legal Trouble When Your Sweepstakes Requires A Purchase.
Acceptable AMOE options commonly include:
The AMOE must be clearly disclosed, easy to access, and must provide entrants with the same chance of winning as any purchase-based entry method.
Brands may offer entries tied to purchases, provided that a free entry option is also available. A giveaway that requires a purchase without a free alternative risks being classified as an illegal lottery.
Best practices include:
Giveaway entry requirements must clearly state minimum age eligibility. Many promotions require entrants to be at least 18 years old, while others may require participants to be 21 or older depending on the prize or industry involved. Age restrictions must be enforced consistently and should align with applicable state and federal laws.
Residency eligibility is equally important. Some states impose registration, bonding, or disclosure requirements for sweepstakes that exceed certain prize values. As a result, many brands limit eligibility to residents of specific jurisdictions.
Because state-level sweepstakes laws vary significantly, brands should evaluate registration and bonding obligations before launching multi-state promotions.
Florida’s sweepstakes statute is frequently cited as a compliance benchmark.
Social media platforms impose their own promotional rules that affect how entries may be collected. Common requirements include:
Because platform rules change frequently, brands should confirm compliance before launching a social media giveaway. Legal review is especially important for regulated industries and high-value promotions.
Compliant giveaway entry requirements are typically contained in official rules drafted or reviewed by legal counsel. These rules should address:
Properly drafted rules should also account for state-specific compliance obligations, including registration and bonding requirements where applicable
Improperly structured giveaway entry requirements can result in platform takedowns, consumer complaints, or regulatory enforcement. Legal review before launch helps brands reduce risk and avoid costly mistakes.
For assistance with drafting or reviewing giveaway entry rules, contact our team at The Social Media Law Firm.
An alternate means of entry is a free method of entering a giveaway that does not require a purchase, payment, or other consideration. It is required to prevent a promotion from being classified as an illegal lottery.
Yes, provided that a free entry option is also available and clearly disclosed. Both entry methods must offer equal odds of winning.
Yes. Most platforms require promotions to link to official rules hosted off-platform and prohibit certain engagement-based entry tactics.
Author
Ethan Wall, Esq.
Founding Attorney, The Social Media Law Firm l Nationally Recognized Social Media Lawyer
Legal Disclaimer: This content is for informational purposes only and does not constitute legal advice.
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