How to ensure legal compliance for Instagram giveaways

Stay compliant, protect your brand, and make your Instagram giveaways legally sound

Running a giveaway on Instagram seems simple enough. You pick a prize, post a photo, and ask people to like and share. After that, you just wait for the engagement to roll in.

However, things aren’t that simple, as there’s a legal aspect that most brands overlook. First, the giveaway can be shut down for flouting Instagram policies. Even worse, the business can face legal action for failing to comply with a country’s legal requirements, which can end up in fines and reputation damage.

Before you launch any Instagram giveaways, it’s important to understand the different legal requirements and ensure compliance.

Sweepstakes vs Contests – understand the difference

You need to understand whether you are running a sweepstake or a contest before you even start drafting your Instagram caption. These two operate differently and are subject to different laws in most countries.

A sweepstakes requires minimal effort from the user, mostly factoring in simple things like sharing, tagging, commenting, or following an account. Then, everyone who joins has a fair shot as the winner is chosen randomly. These campaigns often have strict rules as they resemble lotteries, so be sure to check country-by-country regulations.

On the other hand, a contest is based on skill, with the user chosen by merit. For example, you might ask your followers to submit a photo, design something creative, or write a caption. You can then choose a winner or subject a few submissions to a jury vote. These campaigns aren’t heavily regulated, but your contest regulations still need to be clear on the entry criteria and how winners are selected.

Comply with Instagram’s promotion Guidelines

Instagram is quite friendly to promotions and doesn’t have many complicated policies. However, it still has some giveaway and contest regulations you need to follow, and failing to do so will likely have your posts removed and your account flagged (or even suspended).

Here’s what the platform asks from you:

Make it clear that Instagram isn’t associated with your giveaway in any way.
Absolve Instagram from any responsibility or liability related to the promotion.
Don’t tag or encourage tagging content or users who aren’t part of the giveaway.

The platform also expects to ensure legal compliance in each country you operate in, but it doesn’t enforce this one.

Include clear and legal Giveaway rules

Giveaway rules are quite crucial as they guide your participants. But even more importantly, they protect you. If a user complains that they didn’t win or were misled, you should be able to guide them to a relevant section in your terms and conditions.

While drafting the rules, clearly state:

Who can enter
How to enter
How and when winners are selected
What the prize is (and its conditions)

Since you can’t outline all the details on Instagram due to limited space, place a link to guide users to the full terms and conditions.

Avoid “Lottery” structure at all costs

The fastest way to get your Instagram giveaway into legal hot water is by accidentally turning it into a lottery. In every country, these are strictly controlled, with all operators required to have a local license.

The problem is that it’s easier to cross the line without realizing it than you might think.

Factor in the Giveaway & Data Privacy Laws of each Country

Instagram may be global, but your giveaway can only run on a country-by-country basis. This is because different countries have different giveaway rules, tax regulations, and privacy laws.

If you plan on running international promotions, consider the giveaway and data privacy regulations of each country you want to operate in. For example, if your giveaway is available in Europe, you need to comply with the GDPR. Otherwise, you may end up with a huge fine.

While planning the campaign, determine the countries you want to operate in and tailor your Instagram giveaway to each – there’s no one-size-fits-all. Ensure you also consult legal experts to avoid breaking any laws and ending up with a costly but unsuccessful campaign.

Need help navigating the legal side of Instagram giveaways?

Whether you’re planning a local or international giveaway, Promosfera brings the legal expertise and promotional experience to ensure your campaign runs smoothly and stays fully compliant. Reach out to launch your giveaway with confidence!