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3/21/2019

An Overview of UGC Rights Management

The trend of user-generated content (UGC) on social media has changed the landscape of how consumers discover products and make purchase decisions. In addition, it has shifted the landscape of earned media, as consumers are more open to sharing their experiences on social media. Rather than looking directly to brands for information, they increasingly depend to their social circles or favorite influencers for trustworthy opinions and reviews.

All social media impressions of your brand are not made equal. Organic impressions that your brand earns through @mention or a branded hashtag tell your brand’s story through real consumers’ eyes. In this blog, we’ll discuss methods of leveraging these interactions for your brand’s marketing.

Learn more about UGC

Avoiding Legal Issues with UGC Rights Management

UGC holds a powerful purpose in marketing, as it’s easier to curate and drives more results in lieu of expensive brand-produced content. However, there are often risks involved with the consumer-produced content - avoiding complications like copyright fights, it’s important to understand the legal rights for both the brand and consumer.

What is UGC Rights Management?

Rights management with UGC is when a brand requests consent to use a piece of content from its original author or creator. Brands need to acquire permission due to the nature of how the content will be used, which is often outside of Fair Use when re-used for marketing and commercial purposes.

There are services available that can automate and handle this process for you, and ensure that your brand is up-front with your customers about what content you will be using and how you intend to use it. For example, our UGC Promotions Platform can make getting permission much easier.

It’s recommended to reach out to an agency that can provide thorough knowledge on UGC Rights Management in order to ensure full protection of your brand and company. A rights management platform like ours allows you to contact individuals and request their permission to feature their content in your marketing.

Why is UGC Rights Management Important?

As stated earlier, you want the proper permission to legally protect your brand and your consumers. The benefits of proper rights management allow you to turn earned media into owned content. Having full control of curated content gives your advertising and marketing team a larger pool of media to work with for current and future efforts, and can often offset the complications that come with calling for user-generated content.

What Legal Issues Can Arise With User Generated Content?

Unlawful or Undesirable Content

Obscenities, defamatory content, and stolen content cause sometimes be tagged, submitted, or posted to your website or social media page by users. UGC Rights Management services will protect your brand’s image by screening submissions or posts and reporting or disqualifying them.

Copyrighted or Trademarked Content

Despite being public domain, a user owns the copyright to a piece of content created and shared by them, as explained by the US Copyright Office. Copyright exists the moment the work is created. UGC Rights Management includes getting the proper Terms of Service or permission to re-use or redistribute someones content for marketing or promotional purposes.

User Privacy

Protecting your consumers who submit user-generated content is critical to avoiding pitfalls. With rising needs to comply with laws such as the General Data Protection Regulation (GDPR) that impacts EU citizens, or the California Online Privacy Protection Act (CalOPPA), it’s important to include statements such as a Privacy Policy.

Running a promotional contest or sweepstakes is an effective way to avoid many of these scenarios, since posting social channels they can be subject to the terms set forth in your Official Rules when your promotion hashtag contains “sweepstakes” or “contest”. This is similar to the #ad used by influencers when they are compensated to post content on behalf of a brand.

In addition, there are services including legal administration and contest management to aid you in avoiding common mistakes and complications.

Will consumers give me permission to use their content?

Most consumers enjoy being noticed by their favorite brands and will be excited to be featured - as long as the intended use is clear and purposeful. Their effort of sharing your brand is valuable to your goals, and your brand sharing their content exposes your audience to them. This scenario benefits both ends.

However, many brands have found themselves in trouble, assuming they can take images from consumers or influencers without any mutual agreement. Influencers, in particular, tend to be more protective of their content. Their motivations may be different from the average consumer and some may ask for payment or incentives.

It’s not uncommon for users with strong followings to ask brands for payment for their user-generated content, so be sure to still work out an agreement or seek influencers who will ask for less to gain exposure in return.

Overall, launching a UGC Promotion is a powerful way to generate an abundance of valuable content. The right incentive pool can attract all types of influencers - from everyday consumers, to high-profile influencer or industry leaders. In addition, a UGC Promotion can turn participants into your best marketers and snowball the amount of UGC being generated.

Closing Notes: UGC Rights Recap

User-generated content has the ability to boost brand authenticity with user-submissions, driving efficiency in your marketing and decreasing CPM of impressions, lowering the cost of driving your reach and producing branded content. However, you must be aware that content creators are entitled to how their content is used.

UGC rights management can seem no-brainer, but knowing the proper ways to gain permission will protect your brand. There are platforms available that make the process easy and efficient. You can extend these capabilities and avoid the need for Rights Management by running a promotion. This incentivizes more participation, gives you rights through official rules and participation agreements, and prizes that support your traffic and goals.

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
Visit our blog, Sweepstakes vs. Contests: Key Differences Every Marketer Should Know, to find out more about the differences between Sweepstakes and Contests.
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.
Additionally, here is an overview of the key legal considerations essential for a successful and compliant promotion: Navigating the Key Legal Requirements for Sweepstakes.
Contact us today to leverage our expertise in legal promotion administration.

Your Guide to State-Specific Sweepstakes and Contest Laws

State-Specific Promotion Law

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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.

Arizona

additional requirements
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.

Colorado

additional requirements
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.

Florida

additional requirements
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.

Maryland

additional requirements
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

additional requirements
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

additional requirements
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.

Nebraska

additional requirements
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.

New Jersey

additional requirements
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.

New York

additional requirements
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.

North Dakota

additional requirements
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.

Rhode Island

additional requirements
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.

Tennessee

additional requirements
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

additional requirements
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.

Vermont

additional requirements
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

additional requirements
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.
ADDITIONAL REQUIREMENTS
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.