New Jersey Official Rules for Online Sweepstakes

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US-DB0812AM
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  • Preview Official Rules for Online Sweepstakes
  • Preview Official Rules for Online Sweepstakes
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FAQ

In New Jersey, contests and sweepstakes do not have state-specific legal requirements that differ from the common promotion law. Contests and Sweepstakes in New Jersey must still follow standard promotion law.

General Sweepstakes Law Requirements Consumers must not be required to pay to enter. There must be a free, alternative means of entry (?AMOE?). Eligibility requirements must be spelled out. Odds of winning must be disclosed.

Sweepstakes (also known as giveaways) are prize contests where winners are selected randomly from all eligible entrants. Prizes might range from stickers and t-shirts to mansions, automobiles, and vast sums of money. Also, the only requirement is that the award has some monetary value or is a prize pool.

How Much Can You Give Away? There is no legal limit on how much you can give away, but the higher the amount the more complicated it can get. For example, if your prize is worth more than $600, you must file a 1099 form with the IRS.

Monetary Consideration refers to the purchase of a product, service or any other entry fee that is required to enter a promotion. Non-Monetary Consideration refers to any substantial time or effort which entrants must expend while entering the promotion, and that benefits the sponsor in some direct way.

Abbreviated Rules Examples Here are some examples below: ?NO PURCHASE NECESSARY. A Purchase Will Not Increase Your Chances of Winning a Prize.? abbreviated to ?NO PURCHASE NECESSARY? ?Must be a legal resident of the 50 United States and District of Columbia? abbreviated to ?Legal resident of the U.S.?

This is usually done by a random drawing or a preselected number. In a random drawing, entries are either picked manually by trained judges or by a computer using random-selection programs.

10 Easy Steps to Create a Killer Giveaway or Sweepstakes Setting Contest Goals. Selecting the Contest Prize(s) Setting the Participation Rules. Choosing Entry Options. Determining Start & End Times. Setting Up The Giveaway. Promoting the sweepstakes. Picking and announcing the winners.

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New Jersey Official Rules for Online Sweepstakes