On September 21st, 2016 Paqui, a relatively unknown chip brand at the time, sat down with Mashable to talk exclusively about their new chip. Paqui had taken the world’s hottest pepper and paired it with a completely unheard of product. Branded as the world’s hottest chip, the Carolina Reaper Chip was not only as a product, but as a challenge.
Priced at $4.99, Paqui was planning to release a snack experience unlike any other. Available in select stores and on Paqui’s website, the Carolina Reaper Chip was more than a product. The #OneChipChallenge was a fully branded product experience and Paqui was inviting consumers to be a part of it.
From a promotional stand-point, Paqui had all of their bases covered. The first was the challenge and contest portion. When presented with the premise of “the world’s hottest chip”, skepticism is immediately evoked. This gets the consumer thinking, “I can do this, there’s no way it’s that hot.” From there product interest spikes through the roof. Increased awareness translates to participation. Much like other shopper marketing contests, increased participation means increased sales.
A powerful incentive can motivate almost any consumer. Learn more about our prizing and fulfillment services along with the rest of our promotions built especially for cpg products.
To increase contest awareness Paqui doubled down on their marketing strategy and integrated social media to the shopper marketing campaign. Entry was simple, record yourself eating the chip and post the video online with #OneChipChallenge. From there you were automatically entered to win one of several grand prizes and several lower tier prizes as well.
With the contest live and chips out in the world, challenge entries flooded in. Social networks exploded with posts tagged with #OneChipChallenge. While participating in the challenge proved fun, watching others proved even more entertaining.
In 2 weeks the campaign had earned Paqui over 500MM impressions - a number that continued to climb through the following months. Traditionally, shopper marketing relies heavily on in-store displays right at the point of purchase. Paqui, however, was ushering in a new age of digital promotions for CPG brands and on-pack promotions.
By leveraging basic social media marketing principles, the chip challenge was able to raise their brand equity. Driving massive amounts of brand mentions and earned impressions through sharing, translating into sales and participation.
https://player.vimeo.com/video/182871066
The original Mashable piece was shared over 227,000 times and as Paqui travelled around New York giving out samples, challenging different media figures, the hype only grew. As reported by PRWeek.com, the original #OneChipChallenge was so successful that Amplify Snack Brands (the producers of Paqui Chips) reported a 400% sales growth for Q4 of 2016.
To this day Paqui’s product page shows that the chip is sold out. And while the original #OneChipChallenge ran almost three years ago, the chip continue to pop up in the media annually. With the chip challenge continuing to run annually, consumers come keep participating year after year.
Paqui’s creative cpg campaign bridged the gap between the digital world and their physical product. By pairing incentivized online participation with an exciting product, the challenge motivated purchase decisions and accelerated awareness and sales.
In the digital age of advertising, brand marketing has found a new focal point by centering around the consumer’s smartphone. At Realtime Media, we find that integrating mobile technology such as social media with on-pack promotions, like the #OneChipChallenge, is a great way to increase engagement and boost sales.
Specializing in full-service digital promotions, our full suite of shopper marketing capabilities is perfectly suited for your brand. Engage consumers at the point of sale and seamlessly turn them from passive customers into involved consumers with engaging digital promotions.
To learn more about our shopper marketing promotions, click here.
Contests and sweepstakes are powerful tools for audience engagement and achieving marketing goals.
In the U.S., both federal and state laws govern these promotions, with some states imposing unique requirements that can significantly impact how promotions are structured. This guide provides an overview of states that align with general federal guidelines versus those with specific, additional regulations.
Looking for Specific State Laws?
Our expert legal team can guide you to ensure that your promotion is fully compliant with state and federal laws.
Key Regulations Every Nationwide Promotion Must Follow
Understanding the foundational regulations is the first step to a legally compliant sweepstakes or contest:
Sweepstakes
Based on chance, sweepstakes must comply with strict legal guidelines to avoid being classified as illegal lotteries.
Contests
These are skill-based and have distinct legal criteria focused on clear, fair judging standards
In your sweepstakes official rules, it’s also essential to include
“no purchase necessary language” and offer an alternative method of entry (AMOE), where needed.
Your Guide to State-Specific Sweepstakes and Contest Laws
State-Specific Promotion Law
Alabama
Colorado
Hawaii
Kansas
Massachusetts
Montana
New Mexico
Oklahoma
South Dakota
Virginia
Alaska
Connecticut
Idaho
Kentucky
Michigan
Nebraska
New York
Oregon
Tennessee
Washington
Arizona
Delaware
Illinois
Louisiana
Minnesota
Nevada
North Carolina
Pennsylvania
Texas
West Virginia
Arkansas
Florida
Indiana
Maine
Mississippi
New Hampshire
North Dakota
Rhode Island
Utah
Wisconsin
California
Georgia
Iowa
Maryland
Missouri
New Jersey
Ohio
South Carolina
Vermont
Wyoming
Alabama
general federal guidelines
Contests and sweepstakes for this state are required to follow the same laws found throughout the United States.
Alaska
general federal guidelines
Contests and sweepstakes for this state are required to follow the same laws found throughout the United States.
Additional registration requirements for certain Contests. Otherwise, contests and sweepstakes for this state are required to follow the same laws found throughout the United States
Arkansas
general federal guidelines
Contests and sweepstakes for this state are required to follow the same laws found throughout the United States.
California
general federal guidelines
Contests and sweepstakes for this state are required to follow the same laws found throughout the United States.
In Colorado, contests and sweepstakes are prohibited from requiring entrants to make a purchase or forms of consideration to enter a promotion. Most states allow purchase requirements within contests where winners are chosen based on skill or criteria. Outside of this, contests and sweepstakes are required to follow the same laws found throughout the United States
Connecticut
general federal guidelines
Contests and sweepstakes for this state are required to follow the same laws found throughout the United States.
Delaware
general federal guidelines
Contests and sweepstakes for this state are required to follow the same laws found throughout the United States.
For sweepstakes offering total prize values that exceed $5,000, the sweepstakes final rules must be bonded and registered 7 days prior to the start of the sweepstakes. In some instances, the Sponsor may have the right to a waiver in lieu of obtaining a bond. In addition, sponsors are required to file a final winners list with the state.
Outside of this, contests and sweepstakes are required to follow the same laws found throughout the United States
Georgia
general federal guidelines
Contests and sweepstakes for this state are required to follow the same laws found throughout the United States.
Hawaii
general federal guidelines
Contests and sweepstakes for this state are required to follow the same laws found throughout the United States.
Idaho
general federal guidelines
Contests and sweepstakes for this state are required to follow the same laws found throughout the United States.
Illinois
general federal guidelines
Contests and sweepstakes for this state are required to follow the same laws found throughout the United States.
Indiana
general federal guidelines
Contests and sweepstakes for this state are required to follow the same laws found throughout the United States.
Iowa
general federal guidelines
Contests and sweepstakes for this state are required to follow the same laws found throughout the United States.
Kansas
general federal guidelines
Contests and sweepstakes for this state are required to follow the same laws found throughout the United States.
Kentucky
general federal guidelines
Contests and sweepstakes for this state are required to follow the same laws found throughout the United States.
Louisiana
general federal guidelines
Contests and sweepstakes for this state are required to follow the same laws found throughout the United States.
Maine
general federal guidelines
Contests and sweepstakes for this state are required to follow the same laws found throughout the United States.
Contests and sweepstakes are prohibited from requiring entrants to make a purchase or forms of consideration to enter a promotion. Most states allow purchase requirements within contests where winners are chosen based on skill or criteria. Outside of this, contests and sweepstakes are required to follow the same laws found throughout the United States
Specialized trade practices apply for tobacco-related promotions. Outside of this, contests and sweepstakes are required to follow the same laws found throughout the United States
Asking entrants to visit a store is technically classified as consideration and is prohibited for sweepstakes.Specialized trade practices apply for tobacco-related promotions.
Outside of this, contests and sweepstakes are required to follow the same laws found throughout the United States
Minnesota
general federal guidelines
Contests and sweepstakes for this state are required to follow the same laws found throughout the United States.
Mississippi
general federal guidelines
Contests and sweepstakes for this state are required to follow the same laws found throughout the United States.
Missouri
general federal guidelines
Contests and sweepstakes for this state are required to follow the same laws found throughout the United States.
Montana
general federal guidelines
Contests and sweepstakes for this state are required to follow the same laws found throughout the United States.
Contests and sweepstakes are prohibited from requiring entrants to make a purchase or forms of consideration to enter a promotion. Most states allow purchase requirements within contests where winners are chosen based on skill or criteria.Outside of this, contests and sweepstakes are required to follow the same laws found throughout the United States
Nevada
general federal guidelines
Contests and sweepstakes for this state are required to follow the same laws found throughout the United States.
New Hampshire
general federal guidelines
Contests and sweepstakes for this state are required to follow the same laws found throughout the United States.
Specialized trade practices apply for tobacco alcohol-related promotions. Contests and sweepstakes for this state are required to follow the same laws found throughout the United States
New Mexico
general federal guidelines
Contests and sweepstakes for this state are required to follow the same laws found throughout the United States.
For sweepstakes offering total prize values that exceed $5,000, the sweepstakes final rules must be bonded and registered (technically 30 days) prior to the start of the sweepstakes. In addition, sponsors are required to provide a final winners list.
Outside of this, contests and sweepstakes are required to follow the same laws found throughout the United States
North Carolina
general federal guidelines
Contests and sweepstakes for this state are required to follow the same laws found throughout the United States.
Contests and sweepstakes are prohibited from requiring entrants to make a purchase or forms of consideration to enter a promotion. Most states allow purchase requirements within contests where winners are chosen based on skill or criteria.
Outside of this contests and sweepstakes are required to follow the same laws found throughout the United States
Ohio
general federal guidelines
Contests and sweepstakes for this state are required to follow the same laws found throughout the United States.
Oklahoma
general federal guidelines
Contests and sweepstakes for this state are required to follow the same laws found throughout the United States.
Oregon
general federal guidelines
Contests and sweepstakes for this state are required to follow the same laws found throughout the United States.
Pennsylvania
general federal guidelines
Contests and sweepstakes for this state are required to follow the same laws found throughout the United States.
Sweepstakes in which a retail establishment offers a prize in order to promote its retail business, where the total value of the prize offered is more than $500, must be registered. No bond is required.Outside of this, contests and sweepstakes are required to follow the same laws found throughout the United States
South Carolina
general federal guidelines
Contests and sweepstakes for this state are required to follow the same laws found throughout the United States.
South Dakota
general federal guidelines
Contests and sweepstakes for this state are required to follow the same laws found throughout the United States.
Prohibits requiring any sweepstakes winner to submit a publicity release.
Outside of this, contests and sweepstakes are required to follow the same laws found throughout the United States
A sponsor may not automatically enter a consumer into a promotion when making a purchase without a clear, free, alternate method of entry.
Outside of this, contests and sweepstakes are required to follow the same laws found throughout the United States
Utah
general federal guidelines
Contests and sweepstakes for this state are required to follow the same laws found throughout the United States.
Contests and sweepstakes are prohibited from requiring entrants to make a purchase or forms of consideration to enter a promotion. In addition, sponsors cannot require consumers to pay for return postage if they request information about your promotion, such as a list of winners. Outside of this contests and sweepstakes are required to follow the same laws found throughout the United States
Asking entrants to visit a store is classified as consideration and is prohibited for sweepstakes. Specialized trade practices apply for tobacco-related promotions.
Outside of this, contests and sweepstakes are required to follow the same laws found throughout the United States.
Washington
general federal guidelines
Contests and sweepstakes for this state are required to follow the same laws found throughout the United States.
West Virginia
general federal guidelines
Contests and sweepstakes for this state are required to follow the same laws found throughout the United States.
Wisconsin
general federal guidelines
Contests and sweepstakes for this state are required to follow the same laws found throughout the United States.
Wyoming
general federal guidelines
Contests and sweepstakes for this state are required to follow the same laws found throughout the United States.
Select a state to view specific laws for that area.
general federal guidelines
In this guide, we highlight key states with notable regulatory distinctions.
Some states have different exceptions or laws regarding contest and sweepstakes regulations. The states that have the most prominent exceptions are below:
states with additional requirements
Arizona Contest & Sweepstakes Laws
Additional registration requirements for certain Contests. Otherwise, contests and sweepstakes for this state are required to follow the same laws found throughout the United States
Colorado Contest & Sweepstakes Laws
In Colorado, contests and sweepstakes are prohibited from requiring entrants to make a purchase or forms of consideration to enter a promotion. Most states allow purchase requirements within contests where winners are chosen based on skill or criteria. Outside of this, contests and sweepstakes are required to follow the same laws found throughout the United States
Florida Contest & Sweepstakes Laws
For sweepstakes offering total prize values that exceed $5,000, the sweepstakes final rules must be bonded and registered 7 days prior to the start of the sweepstakes. In some instances, the Sponsor may have the right to a waiver in lieu of obtaining a bond. In addition, sponsors are required to file a final winners list with the state.
Outside of this, contests and sweepstakes are required to follow the same laws found throughout the United States
Maryland Contest & Sweepstakes Laws
Contests and sweepstakes are prohibited from requiring entrants to make a purchase or forms of consideration to enter a promotion. Most states allow purchase requirements within contests where winners are chosen based on skill or criteria. Outside of this, contests and sweepstakes are required to follow the same laws found throughout the United States
Massachusetts Contest & Sweepstakes Laws
Specialized trade practices apply for tobacco-related promotions. Outside of this, contests and sweepstakes are required to follow the same laws found throughout the United States
Michigan Contest & Sweepstakes Laws
Asking entrants to visit a store is technically classified as consideration and is prohibited for sweepstakes.
Specialized trade practices apply for tobacco-related promotions.
Outside of this, contests and sweepstakes are required to follow the same laws found throughout the United States
Nebraska Contest & Sweepstakes Laws
Contests and sweepstakes are prohibited from requiring entrants to make a purchase or forms of consideration to enter a promotion. Most states allow purchase requirements within contests where winners are chosen based on skill or criteria.
Outside of this, contests and sweepstakes are required to follow the same laws found throughout the United States
New Jersey Contest & Sweepstakes Laws
Specialized trade practices apply for tobacco alcohol-related promotions. Contests and sweepstakes for this state are required to follow the same laws found throughout the United States
New York Contest & Sweepstakes Laws
For sweepstakes offering total prize values that exceed $5,000, the sweepstakes final rules must be bonded and registered (technically 30 days) prior to the start of the sweepstakes. In addition, sponsors are required to provide a final winners list.
Outside of this, contests and sweepstakes are required to follow the same laws found throughout the United States
North Dakota Contest & Sweepstakes Laws
Contests and sweepstakes are prohibited from requiring entrants to make a purchase or forms of consideration to enter a promotion. Most states allow purchase requirements within contests where winners are chosen based on skill or criteria.
Outside of this contests and sweepstakes are required to follow the same laws found throughout the United States
Rhode Island Contest & Sweepstakes Laws
Sweepstakes in which a retail establishment offers a prize in order to promote its retail business,
where the total value of the prize offered is more than $500, must be registered. No bond is required.
Outside of this, contests and sweepstakes are required to follow the same laws found throughout the United States
Tennessee Contest & Sweepstakes Laws
Prohibits requiring any sweepstakes winner to submit a publicity release.
Outside of this, contests and sweepstakes are required to follow the same laws found throughout the United States
Texas Contest & Sweepstakes Laws
A sponsor may not automatically enter a consumer into a promotion when making a purchase without a clear, free, alternate method of entry.
Outside of this, contests and sweepstakes are required to follow the same laws found throughout the United States
Vermont Contest & Sweepstakes Laws
Contests and sweepstakes are prohibited from requiring entrants to make a purchase or forms of consideration to enter a promotion. In addition, sponsors cannot require consumers to pay for return postage if they request information about your promotion, such as a list of winners. Outside of this contests and sweepstakes are required to follow the same laws found throughout the United States
Virginia Contest & Sweepstakes Laws
Asking entrants to visit a store is classified as consideration and is prohibited for sweepstakes. Specialized trade practices apply for tobacco-related promotions.
Outside of this, contests and sweepstakes are required to follow the same laws found throughout the United States.
states with no additional requirements
Alabama Contest & Sweepstakes Laws
Contests and sweepstakes for this state are required to follow the same laws found throughout the United States.
Alaska Contest & Sweepstakes Laws
Contests and sweepstakes for this state are required to follow the same laws found throughout the United States.
Arkansas Contest & Sweepstakes Laws
Contests and sweepstakes for this state are required to follow the same laws found throughout the United States.
California Contest & Sweepstakes Laws
Contests and sweepstakes for this state are required to follow the same laws found throughout the United States.
Connecticut Contest & Sweepstakes Laws
Contests and sweepstakes for this state are required to follow the same laws found throughout the United States.
Delaware Contest & Sweepstakes Laws
Contests and sweepstakes for this state are required to follow the same laws found throughout the United States.
District of Columbia Contest & Sweepstakes Laws
Contests and sweepstakes for this state are required to follow the same laws found throughout the United States.
Georgia Contest & Sweepstakes Laws
Contests and sweepstakes for this state are required to follow the same laws found throughout the United States.
Hawaii Contest & Sweepstakes Laws
Contests and sweepstakes for this state are required to follow the same laws found throughout the United States.
Idaho Contest & Sweepstakes Laws
Contests and sweepstakes for this state are required to follow the same laws found throughout the United States.
Illinois Contest & Sweepstakes Laws
Contests and sweepstakes for this state are required to follow the same laws found throughout the United States.
Indiana Contest & Sweepstakes Laws
Contests and sweepstakes for this state are required to follow the same laws found throughout the United States.
Iowa Contest & Sweepstakes Laws
Contests and sweepstakes for this state are required to follow the same laws found throughout the United States.
Kansas Contest & Sweepstakes Laws
Contests and sweepstakes for this state are required to follow the same laws found throughout the United States.
Kentucky Contest & Sweepstakes Laws
Contests and sweepstakes for this state are required to follow the same laws found throughout the United States.
Louisiana Contest & Sweepstakes Laws
Contests and sweepstakes for this state are required to follow the same laws found throughout the United States.
Maine Contest & Sweepstakes Laws
Contests and sweepstakes for this state are required to follow the same laws found throughout the United States.
Minnesota Contest & Sweepstakes Laws
Contests and sweepstakes for this state are required to follow the same laws found throughout the United States.
Missouri Contest & Sweepstakes Laws
Contests and sweepstakes for this state are required to follow the same laws found throughout the United States.
Montana Contest & Sweepstakes Laws
Contests and sweepstakes for this state are required to follow the same laws found throughout the United States.
Nevada Contest & Sweepstakes Laws
Contests and sweepstakes for this state are required to follow the same laws found throughout the United States.
New Hampshire Contest & Sweepstakes Laws
Contests and sweepstakes for this state are required to follow the same laws found throughout the United States.
New Mexico Contest & Sweepstakes Laws
Contests and sweepstakes for this state are required to follow the same laws found throughout the United States.
North Carolina Contest & Sweepstakes Laws
Contests and sweepstakes for this state are required to follow the same laws found throughout the United States.
Ohio Contest & Sweepstakes Laws
Contests and sweepstakes for this state are required to follow the same laws found throughout the United States.
Oklahoma Contest & Sweepstakes Laws
Contests and sweepstakes for this state are required to follow the same laws found throughout the United States.
Oregon Contest & Sweepstakes Laws
Contests and sweepstakes for this state are required to follow the same laws found throughout the United States.
Pennsylvania Contest & Sweepstakes Laws
Contests and sweepstakes for this state are required to follow the same laws found throughout the United States.
South Carolina Contest & Sweepstakes Laws
Contests and sweepstakes for this state are required to follow the same laws found throughout the United States.
South Dakota Contest & Sweepstakes Laws
Contests and sweepstakes for this state are required to follow the same laws found throughout the United States.
Utah Contest & Sweepstakes Laws
Contests and sweepstakes for this state are required to follow the same laws found throughout the United States.
Washington Contest & Sweepstakes Laws
Contests and sweepstakes for this state are required to follow the same laws found throughout the United States.
West Virginia Contest & Sweepstakes Laws
Contests and sweepstakes for this state are required to follow the same laws found throughout the United States.
Wisconsin Contest & Sweepstakes Laws
Contests and sweepstakes for this state are required to follow the same laws found throughout the United States.
Wyoming Contest & Sweepstakes Laws
Contests and sweepstakes for this state are required to follow the same laws found throughout the United States.