What federal laws apply to contests and sweepstakes?
A number of federal laws apply to promotions. Determining which laws apply is largely governed by the medium through which the promotion is conducted. Promotions conducted by mail are subject to the Deceptive Mail Prevention and Enforcement Act. The act requires promotions mailings to include all terms and conditions, the address of the company conducting the promotion, and prize information such as odds of winning, estimated value, and schedule of payments. For sweepstakes, the company must specify that no purchase is necessary to enter the sweepstakes. E-mail promotions are subject to the CAN-SPAM Act of 2003. The act requires the sender of e-mails to clearly identify the e-mail as an advertisement, to provide the opportunity for the recipient to opt out of receiving e-mails from the sender, and to provide the sender’s physical postal address. Promotions by phone must adhere to the Telemarketing Sales Rule. The rule requires the caller to inform the person called the odds of winning
