Sample Contest Rules for Sweepstakes, Giveaways & Online Contests

Hosting a contest is a good method to generate advertising and promote a product or business.

However, for the contest to be fair and to control expectations, the rules governing such contest should be clear and comprehensive. The Sponsors of a contest are generally responsible for determining how a qualified entry is defined and other rules of eligibility. You will need to create a document to specify the Contest Rules. This document outlines the eligibility criteria for participating in the contest, how to enter, and other valuable aspects of the processes.

This document should be drafted and/or reviewed by a lawyer. One excellent (and inexpensive) resource for online contest rules documents is RocketLawyer.com

From Foursquare on the iPhone to an online game of Farmville, playing "everyday games" has become nothing short of a pop culture obsession. Encouraging high levels of consumer engagement online (to smart brands of every kind, from Chase Bank, to Proctor & Gamble's many brands, to even the US Army, loyalty programs and marketing games are one of marketing's most successful forms of brand development and advertising.

Game-Based Marketing provides concrete ideas and steps to using "game mechanics" as part of your marketing mix...

It appears as if there is not one central, up-to-date resource regarding the legalities of "no purchase necessary". I am still researching this issue. At the moment, here are the notes I have gathered (I believe that laws vary state-by-state)...

Federal Trade Commission

• Possibly THE resource for this issue - "The Mailing of Deceptive Materials Relating to Games of Chance", August 4, 1999


• "Federal Agencies, State Attorneys General Crack down on Deceptive Mail Offers, Unsolicited Faxes and 'Spam'" (Nationwide Coordinated Law Enforcement Actions Taken as Part of "Project Mailbox IV"), January 5, 2001

Articles About "No Purchase Necessary"

Findlaw.com, September 21, 2004 - "Beware: Old Sweepstakes Laws Are Getting Renewed Attention!"

"Keeping Sweepstakes Legal", January 27, 2005 - Polaris Marketing Research

Association Law & Policy Newsletter, October 2005 - "Don't Take Chances With Internet Sweepstakes Compliance"

Wildman Harrold (Attorneys and Counselors), 10/8/2008 "California Sweepstakes Bill Signed Into Law By Governor Schwarzenegger"

Akin Gump Strauss Hauer & Feld LLP, May 25, 2001
"Unwary marketing executives often fall into the trap of sponsoring a sweepstakes contest that, from a legal standpoint, looks more like a private lottery. Private lotteries, which are illegal in every state, are generally defined as having the following three elements: (1) something of value is given away; (2) by chance; and (3) entrants must provide consideration for their entry 1. Genuine games of skill, such as trivia or essay contests, remove the element of chance. Since sweepstakes necessarily require that something of value be given away by chance (i.e., random drawing), the only way to avoid running an illegal lottery is to eliminate the third element, consideration. "Free entry" and "no purchase necessary" have proven practical as means to eliminate consideration 2." - Read more

Just found this site/company that offers tools & services to run online video-based contests - memelabs

I have no affiliation with this company! I have never used the tool and cannot vouch for it.

The following is an excerpt from the memelabs About page:

Memelabs: Contagious Ideas

Memelabs is a consumer- and audience-driven tool combining the powerful, contagious, targeted force of online viral video marketing with the dynamic, inspired interactivity of a fast-paced online contest.

We design, target, run and advertise your online contest, and you reap the rewards.

So what is Memelabs?

Memelabs is a powerful, completely customizable tool for organizing user contributed video submissions. It's a web application which can be managed from any location, whether you're at home, at the office, or on vacation, and there's no software to install or discs to lose.

The format of Memelabs makes it perfect for a myriad of uses; most notably, Memelabs can be used to run a similar service to YouTube/Google Video, or to run promotional video contests like Wind Blows. Memelabs is a fully managed tool; our team designs, programs, runs and administers your project from first steps to execution to completion.

Is it money? Prizes? The chance to win something that you could not have acquired on your own? Ease of submission?

A good online contest might have these qualities:

1) Cash prize

2) Unique prize that you could not get on your own (e.g. hard-to-find-tickets)

3) Clear guidelines about how the winner is chosen

4) The contest is ongoing (more than just a one-time event)

5) Safe & secure - especially if uploading photos of children!

6) The winner is chosen by users voting for their favorites

You may also find this article of interest - Can Contests Work for B2B Marketing?

Summary

Online video contests can be an amazing way of leveraging user-generated content to generate brand awareness, buzz, and website traffic.

Online video contests are gaining traction with major brands - including 1-800-Flowers, Converse, Red Bull, Nike, Diesel Jeans, Mountain Dew, Coors, Sony BMG and, others.

Prizes are usually offered to encourage participation. You can also give away your own company's products to everyone who spends time creating entries for the contest.

Will Video Contests Work for You?

First, which kinds of brands make sense for experimenting with an online video contest? Video contests seem best suited for brands that want to enhance an already strong loyalty (rather than those who want to create or repair loyalty).

When asked, interactive marketers indicated that an online video contest works best for a company with a specific demographic and with a Web savvy audience.

Consumers who truly identify with your brand are the ones who will take the time to create videos for a contest.

Brands with audiences active in social communities, such as YouTube, MySpace, Facebook, CreativeCOW.net, and the Yahoo! Final Cut Pro User Group, are likely to be natural fits.

Sony BMG, for example, used an online video and photo contest to promote a band's album and received more than 1,000 submissions.

3 Good Reasons to Test Online Video Contests

Destination websites are not getting the traffic they once did, and user-contributed content/promotions are an excellent way to generate excitement, buzz, and traffic.

#1: Video Creation Gets People Excited

Videos created by consumers generate significant interaction between a brand and consumers. The energy and creativity that people put into their submissions will resonate with your target audience. Your brand will benefit by association with this energy, and the potential for viral promotion is incredible.

#2: Keep Your Brand Looking Young

Online video contests can make your brand look younger than it actually is (or can sustain the youthful image it already has).

Online video contests are successful when they revolve around a concept that is humorous, different, or fun. Keep the idea of youthfulness in mind when creating and planning a contest.

Your audience itself doesn't necessarily have to be young. But your contest should at least help them feel younger.

#3: Bang for the Buck

An online video contest can produce a similar number of impressions as a TV commercial, at a fraction of the cost. By engaging your consumers to create the content, you eliminate costs for talent, preproduction, production, postproduction and media buys.

You can start and use groups at YouTube, Facebook and MySpace at essentially no cost. Make sure that you monitor the groups so the contest behaves the way you want it to.

How to Run a Video Contest

Setting up the contest can take a few days to a few weeks. Executing the idea properly can take anywhere from one or two people, to a handful of staff members.

Of course, the most important thing it to clearly define your objectives before beginning your contest. And, establish metrics that will correspond to the objectives, and make sure that those metrics can be easily updated on a rolling basis.

It is highly advisable that you:

a) Review every submission
b) Record notes about each entry
c) Track progress

How to Promote a Video Contest

Make sure to research all of the possible websites that will be outlets for promoting the contest. This could include well-known social communities such as YouTube and Facebook, and will likely include many niche websites where your audience congregates.

The list of contest websites on this lens is also a great start!

You will also want to define the incentive for people to enter the contest. Cash speaks loudly! But also consider offering unique experiences that people can't get on their own (e.g. meeting someone famous, getting into a trendy event, etc.)

Here are some ways you can promote your online video contest:

1) Advertise the contest on your homepage and throughout your website (roughly 6 weeks before the video deadline).

2) Send an email to your subscriber list that's dedicated to announcing the contest.

3) Set up groups on Facebook, MySpace and YouTube to build a community of "friends" and then push the contest to them.

4) Consider running banners at individual sites targeted to your audience. Find websites where you know your audience goes to read content.

How Much Does It Cost?

The cost of a properly run online video contest varies greatly.

Start by testing with free YouTube accounts and groups before committing to the creation of a microsite.

It has been reported that successful online video contests can cost anywhere from $25K to $150K (this will depend heavily on the complexity of the contest).

Things to Watch Out For

Upsetting People Who Don't Win

Online video contest participants often put a great deal of effort into their submissions. So, you don't want them to go away angry if they lose (some will think their video was the best no matter what and feel like they were treated unfairly).

To help avoid that, consider:

a) Giving everyone who submits a video a personalized email with a reward coupon (20% off, $25 discount on $100 purchase, free shipping, etc.).

b) Sending contestants something "cool", like a free item they will wear or tell their friends about.

c) Using a panel of judges to determine the winning entries.

d) Allowing viewers to vote for the winner - while it might turn into a 'click competition', it will leverage the democratic nature of the Web and will add to the viral aspect of the contest. Just make sure to have some technical barriers to avoid abuse (such as "capcha" fields where users have to enter the text they see in an image)

Justifying The Cost/Opportunity Cost of Video vs. Other Types of Contests

Getting people to make a video for your brand is far more time-consuming than getting them to write a letter or send in a photo. Think about trying a less time-intensive contest before embarking on an online video contest campaign.

Don't Forget

1) The contest page should include a clearly written and thorough list of instructions on how to participate.

2) Have a Terms & Conditions Page (maintain the rights to the videos!)

3) Privacy Policy Page

4) Have a lawyer review the Terms & Conditions

1. NO PURCHASE NECESSARY. A purchase of a product or service from COMPANY or any of its affiliated companies will not improve the chance of winning. Void where prohibited. Subject to all federal, state, and local laws. Participation requires Internet access.

2. CAN I PARTICIPATE? To participate in the COMPANY "CONTEST NAME" Scholarship you must:

- Be a high school senior or eligible for graduation in the 20xx calendar year, or a current college student, and intend to enroll as a full-time college student in the 20xx-20xx academic year.

- Be a legal resident of the 50 United States or the District of Columbia, including APO/FPO addresses excluding Puerto Rico.

- Employees of COMPANY and COMPANYwebsite.com, its parent, subsidiary and affiliated companies, advertising and promotion agencies, web site providers or other parties involved in any aspect with the creation, production, operation, execution and fulfillment of the Contest and the immediate family members (parents, siblings, children and spouse) and/or those living in the same household (whether or not related) of each are not eligible to win.

- Most importantly, you must be a "success-driven" student, looking to achieve your dreams!

3. CONTEST PERIOD. COMPANY' "CONTEST NAME" Scholarship Contest will be accepting entries online and by mail starting at or about 12:00:01 AM (EST) MONTH DAY, 20xx and ending at 11:59:59 PM (EST) MONTH DAY, 20XX (The "Contest Period"). All online entries must be received by 11:59:59 PM (EST) MONTH DAY, 20xx. All entries sent by mail must be postmarked by MONTH DAY, 20xx and received by MONTH DAY, 20xx. Proof that you entered your form and submission does not constitute proof or evidence that an entry was actually received within the Contest Period. Participants assume all risk of lost, late, misdirected, incomplete or illegible entries. All entries submitted become the sole property of the Sponsor and will not be acknowledged or returned.

4. HOW DO I ENTER? One entry per person. You may enter either online or by mail. Submitting an entry constitutes agreeing to the terms of these Official Rules and all decisions of Sponsor and/or its designee, which are final and binding in all respects. Sponsor is not responsible for incorrect, inaccurate or incomplete entry of information or for entries which are garbled, damaged, incompletely received, otherwise defective or lost due to any reason, all of which will be voided. Each submission of an Entry Form and an Entry Piece shall constitute an entry ("Entry").

ENTRY FORM REQUIREMENTS. Entry Form requires: full name, age, phone number, address, e-mail address, college name and expected graduation date, how you found out about the scholarship, and agreement to the rules.

ENTRY PIECE REQUIREMENTS. (a) Entry Pieces must be on an 8.5" x 11" piece of paper, and can be: photograph, essay, collage, drawing, painting, or any "creation." (b) In the Entry Piece you must demonstrate: This is how I "CONTEST NAME." (c) Sponsor will be looking for a creative, original and convincing approach to persuade them that you are a "success-driven" student. (d) Any language appearing on the Entry Piece must be in English. (e) Entry Pieces must be tasteful. Language will be evaluated by Sponsor based on context and societal acceptability. Content must be intended for a family audience and must, in the sole and unfettered discretion of the Sponsor, be suitable for a general audience and must not contain any nudity, sexually explicit, disparaging, libelous or other inappropriate content. (f) Entry Piece must not contain any commercial content that promotes any product or service other than the Sponsor's. (g) Entry Piece must not contain any trademarks, copyrighted works or other intellectual property (other than as owned by the Entrant). (h) Any elements appearing in an Entry Piece, must be the Entrant's own original work, created solely by the Entrant. Use of anything that is not the Entrant's own original work, may result in disqualification. (i) Sponsor reserves the right to reject any Entry that it deems, in its sole discretion, to violate any of these content related requirements.
If the content of the Entry Piece does not meet the requirements listed above, the Entry Piece will not be posted to the COMPANYwebsite.com web site.

a. ENTER ONLINE. Go to http:///www.CONTESTNAME.com and click on Entry details at the bottom of the page. Click on the link that states "I am interested in entering Online." Fill out online Entry Form and submit. Before submitting your Entry, you must certify that you have read and agree to these Official Rules. Once submitted, you will receive an email that asks you to respond to the email and attach your Entry Piece. Follow the instructions given in the email.

b. ENTER BY MAIL. Visit http://www.CONTESTNAME.com and click on Entry details at the bottom of the page. Click on the link that states "I am interested in entering by Mail." Print out PDF of Entry Form, complete and mail with your Entry Piece to: Attn: CONTEST NAME Scholarship, COMPANY, ADDRESS, CITY, STATE ZIP CODE. Before submitting your Entry, you must certify that you have read and agree to these Official Rules.

CONDITIONS APPLICABLE TO ALL ENTRIES. By submitting an entry (or accepting any prize), each Entrant understands and agrees that their Entry Piece and name may be posted online to COMPANYwebsite.com, without further compensation or review, and will not be returned. Sponsor reserves the right to crop any entry in whole or in part or request submitters to do so, in order to be viewable online. Entrant further agrees to release Sponsor from any and all claims that any such use by Sponsor, including any commercial advertising presentation, web content or any other material subsequently produced, presented and/or prepared by or on behalf of Sponsor, infringes the Entrant's rights with regard to any elements, characters or ideas contained in its Entry.

5. WHAT CAN I WIN? Five (5) Grand Prizes. Five (5) Grand Prize Winners will receive a $1,000 scholarship and a custom "CONTEST NAME" frame. A check will be awarded to each Grand Prize Winner in the form of a check paid directly to the educational institution in the student's account to be used for tuition in the 200xx-20xx academic year. Entrant must provide Sponsor with the identity of the educational institution no later than MONTH DAY, 20xx, and the check must be endorsed and the funds transferred no later than MONTH DAY, 20xx. In the event that either one of these deadlines are not satisfied, the Entrant will forfeit the prize and the prize will not be awarded. No interest will be paid for the time between the date the winner is chosen and the date that the check is issued. Nineteen (19) First Prizes. Nineteen(19) First Prize winners will each receive a custom "CONTEST NAME" frame for their 8.5" x 11" Entry Piece. Prizes will be mailed to the First Place winners on or before MONTH DAY, 20xx. If you are under 18 and are selected as a Grand Prize or First Prize Winner, we must have a signed parental waiver as a condition of receiving prizes. Winners and/or winners' parents or legal guardians in the event winner is a minor under the laws of winner's state of residence are responsible for the reporting and payment of all federal, state and local taxes incurred by the acceptance of the prize. Prizes cannot be assigned, transferred, exchanged or otherwise redeemed. Sponsor is not responsible for any costs associated with accepting or otherwise using the prize. Acceptance of prize constitutes permission to the Sponsor and its agents to use winner's name, likeness, and Entry Piece for purposes of advertising and trade without further compensation, unless prohibited by law.

6. HOW DO I WIN? The top Twenty-Four (24) finalists will be chosen by COMPANY based on contest guidelines and their submissions will be posted online. Five (5) Grand Prize Winners will be determined solely based on the highest number of online votes received during the online voting period (MONTH DAY - MONTH DAY, YEAR.) In the event of a tie, a panel of judges who are also COMPANY employees will determine the winner based on the overall creativity of the tied entries. Judges' decisions are final, binding and conclusive on all matters related to the Contest. Three attempts to contact the potential Grand Prize Winners by telephone, email, or post will be made. Exact means of contact is at the Sponsor's discretion. If a potential Grand Prize Winner is unable to be reached within five (5) days of the third contact attempt, or refuses to accept the prize, the potential Grand Prize Winner will be disqualified and an alternate winner will be selected. Each potential prize winner, and/or their parent or legal guardian if such winner is a minor, must sign and return an Affidavit of Eligibility and Liability/Publicity Release ("Prize Documents") within fourteen (14) days of receipt of Prize Documents. Sponsor shall have no liability or responsibility to award any prize where: (a) any required Prize Documents are not fully executed and received by Sponsor at the designated address by the due date specified in Prize Documents; or (b) if any mail addressed to the potential Winner is returned to Sponsor as undeliverable without a forwarding address or if potential Winner cannot be contacted for any reason; or (c) potential Winner is deemed ineligible or otherwise non-compliant with any aspect of these Official Rules. ANY VIOLATION OF THESE OFFICIAL RULES BY ANY WINNER (AT SPONSOR'S SOLE DISCRETION) WILL RESULT IN SUCH INDIVIDUAL'S DISQUALIFICATION AS A WINNER AND ALL PRIVILEGES DUE SUCH INDIVIDUAL WILL BE IMMEDIATELY TERMINATED AND AN ALTERNATE PRIZE WINNER WILL BE SELECTED. Potential winners may be subject to a background check, which must be satisfactory in Sponsor's absolute discretion. In the event the potential winner is ineligible to participate based upon the information contained in the background check, an alternate winner will be selected.

7. IDEA SUBMISSION. Each Entrant acknowledges and agrees that (a) Sponsor and other participants have access to and/or may create or have created media or other materials, ideas and concepts which may be similar or identical to the Entrant's Contest Entry in theme, idea, plot, format, characters and/or other respects; (b) Entrant shall not be entitled to any compensation or other consideration because of the use by Sponsor or any other participant of any such similar or identical material, ideas and/or concepts; and (c) Sponsor's or another participant's use of material containing elements similar to or identical with those contained in the Entrant's Contest Entry shall not obligate Sponsor to negotiate with nor entitle the Entrant to any compensation or other claim.

8. CONDUCT. By entering this Contest, each Entrant (and/or their parent or legal guardian) agrees to be bound by these Official Rules and by the decisions of the Sponsor and its judges and agents, which are final and binding in all matters relating to the Contest. Sponsor reserves the right at its sole discretion to disqualify and prohibit any Entrant from participating in the Contest or winning a prize who Sponsor suspects, in the sole discretion, of attempting to undermine the legitimate operation of the Contest by cheating, hacking, deception, or other unfair playing practices (including the use of automatic quick entry programs) or intending to annoy, abuse or threaten or harass any of the Sponsors' representatives or otherwise failing to comply with these Rules. NOTE: ANY ATTEMPT BY AN ENTRANT OR ANY OTHER PERSON TO DAMAGE ANY WEB SITE ASSOCIATED WITH THE SPONSOR OR ITS AGENTS OR UNDERMINING THE LEGITIMATE OPERATION OF THE CONTEST IS A VIOLATION OF CRIMINAL AND CIVIL LAW, AND SPONSOR AND ITS AGENTS RESERVE THE RIGHT TO SEEK DAMAGES FROM ANY SUCH PERSON TO THE FULLEST EXTENT PERMITTED BY LAW.

9. RELEASE OF LIABILITY. Each winner, by acceptance of the prize, agrees on behalf of him/herself, his/her heirs, executors, representatives, assigns, administrators and next of kin to indemnify, hold harmless and release the Sponsor, its parent, subsidiary and affiliated businesses and each of their officers, directors, shareholders, employees, advisors, assignees, agents, representatives and any other person or entity associated with this Contest from any and all liability claims or actions of any kind with respect to or in any way arising from this Contest, participation in any Contest-related activity; and/or delivery/misdelivery, acceptance, possession, use, or misuse of a prize, including, but not limited to, liability for personal injury, bodily injury (including wrongful death or disability), damage to property, and damage or loss of any other kind. Sponsor is not responsible for any incorrect or inaccurate information, whether caused by Web site users or by any of the equipment or programming associated with or used in the Contest or by any technical or human error that might occur in the processing of Contest Entries. Sponsor assumes no responsibility for any error; omission; interruption; deletion; defect; delay in operation or transmission; communications-line failure; or theft, destruction, unauthorized access to, or alteration of Entries. Sponsor is not responsible for any problems or technical malfunction of any telephone network or lines; computer online systems, servers, or providers; computer equipment; software; or failure of e-mail or entry on account of technical problems or traffic congestion on the Internet or at any Web site or combination thereof, including injury or damage to participant's or to any person's computer related to or resulting from participating in this Contest, downloading materials from Sponsor's Web site or emailing entries. Sponsor is not responsible for cheating or fraud by any participant. Any activities intended to disrupt or interfere with the proper play of the Contest or defraud Sponsor in any way will be prosecuted to the fullest extent of the law. Participants who engage in any of the foregoing activities will be disqualified and will forfeit any prizes won. If, for any reason, the Contest is not capable of running as planned, due to, without limitation, infection by computer virus, worm, or bugs; tampering; unauthorized intervention; fraud; technical failures; or any other causes beyond the control of Sponsor that, in the sole opinion of Sponsor, could corrupt or affect the administration, security, fairness, integrity, or proper conduct of this Contest, Sponsor reserves the right, at its sole discretion, to cancel, terminate, modify, or suspend the contest. Sponsor is not responsible for any typographical or other error in the printing of these Official Rules or any materials associated with the administration of the Contest or the announcement of the prize. In all events, the sole maximum liability of Sponsor and its affiliates shall be limited to any of the prize(s) set forth herein.
10. CHOICE OF LAW. Except where prohibited by law, all issues and questions concerning the constitution, validity, interpretation and enforceability of these Official Rules, or the rights and obligations of the participant and the Sponsor in connection with this Contest, shall be governed by, and construed in accordance with, the laws of the State of Connecticut in the U.S., without giving effect to any choice of law or conflict of law rules (whether of the State of Connecticut, or any other jurisdiction), which would cause the application of the laws of any jurisdiction other than the State of Connecticut in the U.S.

11. PRIVACY. Information Entrants provide to Sponsor will be used to communicate with Entrants regarding this Contest and otherwise as set forth in these Official Rules, as well as to contact Entrants at a later date with respect to other products and services and product enhancements which the Sponsor believes may be of interest to them. By submitting an entry on-line to Sponsor, all Entrants acknowledge and agree that the personal information that they have provided will be maintained on COMPANY' server in accordance with COMPANY' Privacy Policy.

12. PUBLICITY CONSENT. By submitting an entry or accepting a prize, where permitted by law, each winner grants to Sponsor (and agrees to confirm that grant in writing) and those acting pursuant to the authority of Sponsor the irrevocable right without any further notice, review or consent to print, publish, broadcast, distribute, and use, worldwide in any media now known or hereafter developed, including, but not limited to, the World Wide Web, in perpetuity and throughout the universe, his/her Entry, including, without limitation, the entry and winner's name, portrait, picture, voice, likeness, image or statements about the Contest, and biographical information as news, publicity or information and for trade, advertising, public relations and promotional purposes without any further compensation.

13. WINNER'S IDENTITY & OFFICIAL RULES. Prize winners' name, state of residence and Entry Piece, as well as a version of these Official Rules, suitable for printing, will be posted on the Sponsor's web site and the COMPANY page on Facebook, at Sponsor's discretion.

14. SPONSOR. COMPANY/COMPANYwebsite.com, Address, State Zip Code, sponsors this Contest. Sponsor reserves the right to cancel the Contest at any time and substitute another promotion in its place.