Contests can boost engagement, generate user content, and help brands connect with their audiences—but only if they’re run by the rules. Missteps in judging or entry requirements could turn a legitimate contest into an illegal lottery. That’s why understanding legal contest rules is essential before launching any skill-based promotion.
At The Social Media Law Firm, we help brands, agencies, and startups develop legal strategies for running contests that are both compliant and compelling. From eligibility language to judging systems, we ensure your contest is airtight from day one.
A legal contest is one where winners are selected based on skill, not chance. That skill could be creative (a photo caption), technical (a coding challenge), or knowledge-based (a trivia test). There should be no element of randomness in winner selection. If winners are drawn at random—or if a purchase is required—the contest may be reclassified as a sweepstakes or lottery, which comes with different legal obligations.
To stay compliant, your contest should include:
Your contest rules are a binding contract between you and the entrants. They must clearly explain:
Generic rule templates often miss critical elements or include unenforceable terms. A promotions lawyer can help tailor language that meets state-specific and federal standards.
Judging criteria must be based on objective scoring—not popularity or chance. For example, if users vote for a winner, ensure those votes are weighed alongside skill-based scoring. Better yet, avoid public voting entirely unless used as a tie-breaker.
Good criteria include creativity, originality, technical accuracy, or relevance to a theme. Judges should be independent, and scoring rubrics should be shared publicly. Avoid vague terms like “best” or “most inspiring”—instead, use measurable components like grammar, relevance, or adherence to a prompt.
Yes. Some states have stricter rules around what counts as consideration or how minors may enter. For example, Arizona requires contests with a paid entry method to register with the Attorney General. Other states may regulate the use of user-submitted content or require special registration for contests with high-value prizes.
If your contest is open to entrants nationwide, your rules need to satisfy the requirements of every participating jurisdiction. It’s safest to assume the most restrictive standards apply unless you limit eligibility to a smaller region.
Yes—with caution. If you’re using generative AI or automated tools to evaluate contest entries (e.g., scanning images or reviewing text), you still need to disclose this in your rules. AI cannot be the sole method of evaluation for a legal contest. Human oversight and tie-break judging must be part of the process to avoid due process issues or bias claims.
If your brand operates in banking, healthcare, or another regulated space, contest compliance becomes even more critical. FINRA, HIPAA, and other industry-specific frameworks may restrict how you promote, who you can collect data from, or whether financial incentives are even allowed.
For example, a bank running a contest must disclose that it’s not tied to any financial offer. A healthcare company must avoid collecting protected health info as part of contest submissions. These nuances matter.
If your contest involves high-value prizes, spans multiple states, or includes UGC submissions, legal review is strongly recommended. A contest attorney can help with:
Even if your contest is small, legal support helps you avoid future claims from participants or regulatory scrutiny.
Legal contest rules aren’t just for the fine print—they’re your first line of defense against complaints, lawsuits, and enforcement actions. Whether you’re hosting a caption contest or a nationwide tournament, compliance is key to a successful promotion.
Contact The Social Media Law Firm for expert legal guidance on contest rules, judging procedures, and multi-state compliance strategies.
Contests are based on skill; winners are judged, not randomly selected. Sweepstakes involve chance. A legal contest cannot have random winner selection and must not require payment to enter.
It’s risky. Some states prohibit paid entry skill based contest and must be excluded. Arizona requires registration of skill based paid entry contests. Seeking advice from a contest lawyer will help you remain compliant.
Your rules should cover eligibility, entry requirements, judging criteria, prize descriptions, deadlines, and disclaimers. Clear rules prevent disputes and ensure compliance with state law.
Yes—but you’ll need to comply with the laws in each state. That includes how you collect data, how you notify winners, and whether minors are allowed to enter. A promotions attorney can help you navigate the patchwork of regulations.
Yes, but you must comply with that platform’s specific promotion rules. For example, Meta (Facebook/Instagram) requires specific disclaimers. YouTube prohibits certain prize formats. LinkedIn prohibits giveaways. Your rules should acknowledge platform requirements in addition to legal ones.
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