Social Media Sweepstakes Rules & Regulations:


Distinguish Between a Contest and a Sweepstakes

It is important to determine whether you are running a contest or a sweepstakes.

  • Sweepstakes: Winners are chosen based on pure chance, and no purchase, payment, or other consideration is required to enter.

  • Contest: Winners are selected based on skill or merit, not a random drawing.

 

Prohibiting a purchase or payment to enter is a critical step to avoid creating an illegal lottery.

 

Adhere to Platform-Specific Rules

Each social media platform has its own set of rules for promotions.

  • Facebook: You are responsible for the lawful operation of the promotion. Promotions must include a complete release of Facebook from each participant and an acknowledgment that Facebook is not sponsoring, endorsing, or associated with the giveaway. You cannot require entrants to share the post on their personal or a friend's timeline to enter.

  • Instagram: Like Facebook, you must release Instagram from responsibility and acknowledge that the promotion is not sponsored by them. A key rule is that you must not inaccurately tag content or encourage users to do so.

 

Comply with Minnesota's Prize Notice Requirements

Minnesota has specific statutes governing prize notices, which you should follow closely. For each prize, your notice must include:

  • The sponsor's name and principal business address.

  • The retail value of each prize, listed near the prize description and in the same font size and style.

  • A statement of the odds of winning, presented as the number of prizes out of the total number of notices distributed (e.g., "1 out of 500 notices distributed"). This must also be near the prize description and in the same font size and style.

  • Any eligibility limitations or restrictions for receiving the prize.

  • If you require payment for shipping or other charges, a statement in at least 10-point boldface type that says, "YOU MUST PAY $....... TO RECEIVE THIS ITEM" must be in immediate proximity to the prize listing.

 

The prize must be provided to the winner within 30 days of the announcement.

General Best Practices

Here are some general recommendations for drafting your giveaway rules:

  • Clear and Conspicuous Disclosures: Include phrases like "No Purchase Necessary" and "Void where prohibited".

  • Detailed Entry Information: Clearly state the entry procedures, start and end dates (including time zone), and the date the winner will be chosen and notified.

  • Winner Selection and Publicity: Describe the judging criteria and how the winner will be selected. You should obtain written consent from entrants to use their information for publicity purposes.

  • Tax Compliance: If a prize winner is subject to U.S. taxes, you are required to send them a Form 1099 in January of the following year.