Tags: assumptions, contests, cvs, eliotspitzer, ftc, law, legality, rackspace, sweepstakes.
All you have to do is fluffy socks gift set sign up hosting account at Rackspace, and you might be the winner!Federal Trade Commission law relating to games of chance ; contest rules must include, no Purchase Necessary otherwise the contest becomes a lottery and thus illegal!After all, Im sure many a legitimate market department has conceived a contest to spur sales.So you can bet that Rackspace doesnt use the Lustigman Law firm as their counsel, the authors of Experience and Peace of Mind (in) Promotion / Sweepstakes Marketing.Excerped from the press release: CVS offered customers a chance to win a 1,000 Gift Card Consumers who purchased Nicorette, NicoDerm or Commit, were entered in the sweepstakes.1, bzzzt, wrong answer!And the relevant point here is: Legitimate sweepstakes dont require you to pay or buy something to enter or improve your chances of winning If you have to pay to receive your "prize its not a prize at all.But even if it is done with the best of intentions, if it is a game of chance and you have to pay to play it becomes gambling, and thats just not something most governments want to allow for many great reasons.More to the point, from m s, contests and Sweepstakes section of their Advertising FAQ for Small Business states: Sweepstakes-type promotions that require a purchase by participants are illegal in the United States.Thus, a company that wants to use a sweepstakes to generate interest and sales must make sure that one of the three elements of a lottery a prize, chance, and consideration is absent.On the other hand, if it were allowed, I can just see the spam now: Pay only 100 for your subscription to any of the following magazines, and youll be entered to Win ONE billion dollars!
Or if by some strange chance they do, Rackspaces marketing department certainly didnt run this contest by them!If this post can keep just one entrepreneur out of hot water, Ill be happy I wrote.Eliot Spitzer managed to tag CVS for a 152,000 settlement on a sweepstakes violation.That puts it in simple terms most of use humans can understand.Pretty good deal huh?Rackspace is offering: Win 8 months free Rackspace hosting, for up to 1000/month.Whats even more painful was that CVS had gotten caught in the past!
To qualify for entry in the drawing all of the following requirements must be met: (1) the entrant must be a new customer (2) the Service Order form must be for a term of at least 12 months, (3) the setup fee must have been.
According to, polaris Marketing Research s article entitled.