The answer to the question
- Are giveaways legal?
depends on multiple factors including where you are located, what platform you are hosting your giveaway on and what you are giving away in your contest.
But the bottom line is, when certain guidelines are closely followed, giveaways (sweepstakes, contests, whatever you want to call them) are legal!
Here are the main things you need to know to create your own legal giveaway:
1. Your contest must be free
- In the UK, if entry to your contest is not free, the giveaway technically falls under the category of lottery, which holds strict, separate guidelines and jurisdiction.
2. In prize drawing, your contest winner must be chosen at RANDOM
- You cannot, under any circumstances, hand select your winner! When a winner is chosen, they must be selected at random. Failure to do so is not legal or fair to any of your applicants.
3. Your contest winner must be announced in compliance with both CAP Code and GDPR
- Promoters can provide winners’ names on request in compliance with the GDPR
4. Social network affiliation with the contest must be clearly stated
- Social networks have NO affiliation with contests hosted on the platforms, which must be stated in writing, somewhere within the rules of your contest.
5. Correct tagging and mention of sponsors or partner brands
- In order for the contest to remain legal and also benefit both parties, correct mention of sponsors or partners must be listed and - in the case of social media - tagged correctly.
6. Rules for entrance are clearly stated and followed
- You must state all of the above rules clearly and in an easy-to-locate place on your contest’s page. Not clearly defining the terms and conditions or rules to the contest is both unfair and - in some situations - can be illegal
If you follow these guidelines, you will never have to ask “Are giveaways illegal?” We’re excited to see your giveaway in action!