Conducting a sweepstakes promotion through a social media venue provides businesses with a potent marketing combination: Sweepstakes sponsors can increase engagement with their social media accounts, while increasing brand awareness through the allure of prizes.
However, there are numerous regulatory considerations and social media network rules that apply to each aspect of this marketing approach, as well as their use in tandem. Given the overlapping legal frameworks that apply to sweepstakes promotions and social media venue use, it is essential that business owners retain attorneys who have experience in each of these arenas.
What Laws and Other Rules Apply to Sweepstakes Conducted via Social Media Venues?
Below are some key legal and regulatory requirements to consider when conducting a sweepstakes promotion through a social media venue. Note that the following list is by no means exhaustive:
· A sweepstakes that requires social media participation must still satisfy all of the laws, rules and regulations applicable to sweepstakes conducted via more traditional media. These include: (1) posting a comprehensive and detailed set of sweepstakes contest rules; (2) providing a free, alternative means of entry where necessary; (3) establishing clear contest start and end dates; and (4) a means/timeline for determining the winner(s).
· In addition to regulatory requirements, social media networks, such as Facebook, Instagram, X (formerly Twitter) and Pinterest, also have their own guidelines that apply to the use of sweepstakes-related "likes," "mentions" and "follows." These rules change frequently, so sweepstakes sponsors should check the most recent iteration prior to launching a sweepstakes on a given social media platform.
· Relatedly, the very act of providing "likes," "mentions," "follows," and other social media-related actions may trigger additional regulatory concerns. For example, the Federal Trade Commission's "Guides Concerning the Use of Endorsements and Testimonials in Advertising" require that individuals interacting with content in order to gain entry in a sweepstakes must notify the public that they are obtaining the benefit of sweepstakes entry through such interaction. In particular, prominent disclosures, such as descriptive hashtags, must accompany each social media interaction that results in a sweepstakes entry.
Ensuring that Your Sweepstakes Can Maximize Good Social Media Buzz
Due to the complex interplay of state and federal regulations with social media network guidelines, and the considerable risks to businesses that do not comply with same, it is essential that business owners obtain the advice and counsel of qualified attorneys before commencing any sweepstakes promotion or contest.
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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.