The allure of prizes offered in a sweepstakes promotion can be an effective means of attracting consumers to a brand and/or its specific products/services. This is especially true when the prize in question involves tickets/admission to a highly sought-after live event.
Before proceeding with such a promotion, however, businesses must address certain specific considerations relevant to live event sweepstakes prizes. This is particularly germane because a live event prize may raise issues that are not a concern with more traditional cash or merchandise prizes. In particular, sweepstakes operators must ensure that the Contest Rules contain necessary terms, conditions and restrictions applicable to the live event itself, and any travel and lodging related thereto.
Important Live Event Sweepstakes Considerations
Below are some key concerns to take heed of when offering admission/tickets to a live event as a sweepstakes prize. The following list is by no means exhaustive:
- Where the live event prize includes travel and accommodations, the sweepstakes operator must address certain things in the Contest Rules. In particular, the sweepstakes sponsor should establish: (a) that it will determine (and, where applicable, book) travel dates, airline, flight itinerary and hotel accommodations in its sole and exclusive discretion; (b) whether the prize winner and travel companion (if the prize includes a guest) must travel on the same itinerary, which is subject to change by the sponsor; and (c) that travel and accommodations remain subject to the terms and conditions established by the applicable airline carrier/hotel of choice, as same are provided by those entities.
- What happens if the live event is canceled.
- The Contest Rules should include all terms, conditions and restrictions established by the live event operator/venue, including any age-related admission requirements, COVID-related restrictions and/or whether any alcohol will be served.
- Whether any food, drink, transportation and other perquisites are provided in connection with the prize, or whether those will be the responsibility of the applicable prize winner.
Ensuring that Your Contest Rules Address All Live Event Considerations
While a live event sweepstakes prize can generate buzz, significant liability exists where all relevant facets of the event are not clearly disclosed in advance. In particular, prospective sweepstakes entrants must be provided with, and agree to, Contest Rules that provide all necessary terms, conditions and restrictions applicable to the live event and associated travel/accommodations. In order to achieve the foregoing, it is crucial to retain experienced sweepstakes attorneys prior to conducting any promotion involving a live event prize.
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The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.