Q: Can I run an online sweepstakes with a free entry method and extra entries through purchases?
I want to run an online sweepstakes where entrants can receive multiple entries by purchasing stickers, though there's also a free entry method via a form submission. Currently, I don't have any restrictions on eligibility such as age or location. I'm still researching compliance with sweepstakes regulations, and winners will be notified via email with prizes delivered if they're not local. Is this setup legally permissible, and what specific regulations should I be aware of?
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- California
- (916) 704-3009
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- Answered
A:
Running an online sweepstakes with a free entry method and the option for extra entries through purchases is generally permissible under California law, as long as you follow the rules. One key requirement is that you must provide a no-purchase-necessary method of entry, which you already have with your free entry option. Make sure this method is clearly advertised and accessible to all potential participants.
You should also be aware of rules around prize disclosures, including clearly stating the odds of winning, prize details, and any restrictions that may apply. The rules should be transparent, with the eligibility requirements, including any age or location limits, made clear to participants. Even if you don't have specific restrictions now, it's essential to include this in your official rules, in case you need to update them later.
Finally, ensure compliance with federal regulations regarding sweepstakes, like the requirement for proper winner selection, prize delivery, and ensuring that no purchase or payment is required to enter or win. If you are collecting personal data through entries, be mindful of privacy regulations such as California's Consumer Privacy Act (CCPA).
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