Your sweepstakes can be compelling, creative and fun — but without following the law you’re placing your brand at risk. Which is tricky, because sweepstakes law can be complicated (simply put).
For example, if the total prize value of your sweepstakes is greater than $5,000, there are legal steps you’ll have to take to ensure compliance in several states. More than that, the documentation needs in-depth review and a third party to draw your winner.
So what should you do to guarantee that your sweepstakes is fully compliant? Be aware of the following points.
Handling of Data
Collecting personal data from children under 13 falls in the jurisdiction of the Children’s Online Privacy Protection Act, or COPPA. Sponsors who are unaware of proper data handling and parental consent can run into trouble with sweepstakes law.
Handling of Contact Information
The CAN-SPAM Act supports your participants’ right to opt out of receiving material from your brand. Companies have faced serious penalties for neglecting to follow sweepstakes law to the letter — enforced by the Federal Trade Commission.
Handling of Insurance
Federal and state sweepstakes law requires insurance coverage unique to our industry. Such things as proper certification, the type of coverage and the expiration of your policies must be accounted for.
And it sounds like a lot, saying nothing about official rules, terms & conditions, winner affidavits and 1099 tax forms. But there’s a simple solution for the slippery subject of sweepstakes law.
Let a company handle it for you. Realtime Media has been handling data, contact information, insurance and more for over 20 years. And we do it at the lowest cost.
For full compliance and accountability, consult the nation’s leading authority in sweepstakes law and management on everything FINE PRINT.
To read more about sweepstakes management, check out this blog. For a free consultation on sweepstakes laws, call 484.709.1400 to connect with one of our specialists.