This is important because three specific clauses effect the sweepstakes community from both a marketing and entrant’s perspective. The official website of the Federal Trade Commission, protecting America’s consumers for over 100 years. If your contest or sweepstakes requires an endorsement, you need to require those who enter to disclose. Full RulesWhen budgeting and planning your sweepstakes, ensure you include a legally vetted full set of rules, and if space allows a set of short rules. FTC Issues New Guidance on Endorsements and Related Online Disclosures The Federal Trade Commission (FTC) announced it updated the FAQs to its Guides Concerning Use of Endorsements and Testimonials in Advertising. A sweepstakes operator that took millions of dollars from consumers throughout the United States and dozens of other countries, including Canada, the United Kingdom, France and Japan, is banned from the prize promotion business under a settlement with the Federal Trade Commission.

45) to the use of endorsements and testimonials in advertising. If you are running a sweeps or contest or other incentive in exchange for a tweet or share on social channels you should be making it clear in your entry requirements that the user must disclose that they are posting in exchange for entry …

We were already aware that the FTC was cracking down on brands for not fully disclosing incentives such as sweeps or contest entries for tweeting on their behalf. Specifically, the Guides address the application of Section 5 of the FTC Act (15 U.S.C. The Guides provide For example, an endorsement would be covered by the FTC Act if an advertiser – or someone working for an advertiser – pays you or gives you something of value to mention a product. Federal Trade Commission for the guidance of the public in conducting its affairs in conformity with legal requirements.

The settlement with the FTC and the State of Missouri requires the defendants to turn over more than $21 million in cash, as well as two luxury vacation homes, a yacht, a …

The FTC is only concerned about endorsements that are made on behalf of a sponsoring advertiser. It’s easy to insert a short URL linking to a rules page into every post, pin or tweet when creating your online contest content. It is on you (the brand, social media firm, or SMM manager) to make sure the people who enter the contest are disclosing by using hashtags such as #contest #sweepstakes.