 | The examples and perspective in this article deal primarily with the United States and do not represent a worldwide view of the subject. (December 2017) |
In the United States, a sweepstake is a type of contest where a prize or prizes may be awarded to a winner or winners.[1] Sweepstakes began as a form of lottery that were tied to products sold.[2] In response, the FCC and FTC refined U.S. broadcasting laws (creating the anti-lottery laws).[3] Under these laws sweepstakes became strictly "No purchase necessary to enter or win" and "A purchase will not increase your chances of winning", especially since many sweepstakes companies skirted the law by stating only "no purchase necessary to enter",[4] removing the consideration (one of the three legally required elements of gambling)[5] to stop abuse of sweepstakes.[5] Today, sweepstakes in the United States are used as marketing promotions to reward existing consumers and to draw attention to a product.[2] By definition, the winner is determined by pure random chance rather than skill.[6]
- ^ "Sweepstakes – Definition and More from the Free Merriam-Webster Dictionary". Retrieved 20 September 2014.
- ^ a b evers, beth. "A short history of sweepstakes". Retrieved 28 January 2014.
- ^ "Advertising FAQ's: A Guide for Small Business". Federal Trade Commission. Retrieved 28 January 2014.
- ^ "no purchase necessary laws". Federal Trade Commission. Retrieved 28 January 2014.
- ^ a b "Broadcasting Contests, Lotteries, and Solicitation of Funds". Federal Communications commission. Retrieved 28 January 2014.
- ^ "Is Your Contest Illegal? 33 Important Legal Considerations for Contests and Sweepstakes". Retrieved 23 December 2014.