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Kelly B. Mathis, Esq. James T. Murphy, Esq. Jill F. Bechtold, Esq. Adam F. Regar, Esq. Laurie M. Lee, Esq. Jason R. Hawkins, Esq. Miriam Wilkinson, Esq. Brandon S. Richardson, Esq. Alexandria Vita Hill, Esq.
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Sweepstakes Law in Jacksonville

Do you know the difference between a sweepstakes, a contest or a lottery? Before your company decides to run a promotion, it is important to ensure that the event is not an illegal lottery. While a sweepstakes can be very useful in getting word out about your business, a company using this type of promotional event must comply with regulations established by state and federal sweepstakes law. By definition, a contest awards prizes based on skill and a business may charge for entry into the contest.

To be considered a sweepstakes, you must eliminate one of the three elements that are used to define a lottery:

  1. Prize - In Florida, an event that awards prizes totaling more than $5,000 must be registered and bonded before the sweepstakes begins.
  2. Consideration - For sweepstakes, a company must specify that no purchase is necessary and provide a no payment entry form.
  3. Chance - In a state lottery, a person pays for the chance to win a prize which usually means one dollar to millions of dollars.

Florida Sweekpstakes Attorney

Promotions that satisfy the legal definition as a sweepstake or contest must comply with federal laws which are typically governed by the medium through which the event is conducted. For example, a promotion by phone must adhere to the "Telemarketing Sales Rule" and the person called must be informed that no purchase is necessary and must be given their odds of winning. When a contest or event is promoted through the mail, the "Deceptive Mail Prevention and Enforcement Act" requires disclosure of the terms and conditions, chances of winning, estimated value of prizes, etc. Modern day email promotions are governed by the "CAN-SPAM Act" and requires the sender to clearly identify the email as an advertisement and to furnish opt-out provisions.

Understanding sweepstakes law for Jacksonville promotions can be tricky. In Florida, for a promotion to not be considered gambling, there must be a finite number of opportunities to win, e.g. a sweepstakes card from McDonalds™ tells you how many prizes can be won. For expert legal counsel, call us today for your FREE consultation.

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