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Each state has its own rules governing sweepstakes, occasionally making it more difficult for a sponsor to offer a promotion in a particular state. Florida, New York and Rhode Island often are excluded because they have more restrictive laws governing prizes of high value.
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.?
All sweepstakes and contests must have official rules available to consumers. These rules act as a contract between the sponsor and participants. They can't be ambiguous, and there are several disclosures that all official rules must include.
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.
All sweepstakes in the United States must meet the following regulations: No purchase necessary. You can enter the sweepstakes without buying a product or service. Winners are required to pay taxes on prizes they win.
In the United States, every state establishes their own set of rules for contests. Most states have the same basic rules, so most national contests are valid. Rhode Island is unique because the state law actually requires the company to file a legal statement before it can run a contest in that state.
New York requires that all Sweepstakes offered to New York residents, whose aggregate prize values exceed $5,000 must register and bond the promotion with the New York Department of State. Sweepstakes rules or abbreviated rules must be posted in any participating retail locations and included in all advertisements.
Sweepstakes in New York with a prize pool valued at over $5,000 must be registered and bonded. ii. In New York, contests do not have state-specific legal requirements that differ from the common promotion law. Contests and Sweepstakes in New York must still follow standard promotion law.