Prize Promotions, Terms and Conditions

While preparing to launch the Web IQ Quiz at IQ Agency in Atlanta, I researched countless ways to get people to start spreading the quiz. The number one solution was to conduct a prize promotion. I pulled a few strings and a couple weeks later we had 6 donated Windows Phone 7’s coming in the mail. We slapped the WP7 logo all over the quiz and started tweeting out how people could go about winning a Windows Phone. Here’s the inherent problem with prize promotions, or as they’re often called by government, sweepstakes. It’s very easy and very convenient for a company to garner thousands, even millions of new customers and millions in almost free advertising while just pocketing the grand prize. Think about it, how often do you actually hear back about who won the prize? We see it in the lottery all the time, but that is because the lottery must drive that public interest and prove that people really do win. However, other companies launch brand new sweepstakes that no one has ever heard of before, they are a one time use promotion, and it’s very easy for a company to not follow through.

Here are some rules when making a sweepstakes, provided by Olshan Grundman LLP.

-You cannot require participants to purchase something to enter

-You must follow consideration, meaning you follow through with the advertised promise, whether it’s monetary or non-monetary.

-All sweepstakes must have official rules, established before the sweepstakes. The rules cannot change during the promotion.

-Records of the sweepstakes winner must be retained for four years.

Try your hand at the http://webiqquiz.com/

 

 

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