No Purchase Necessary?

Discussion in 'General Business' started by eruct, Dec 13, 2007.

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  1. #1
    I was wondering what the deal is with sweepstakes and the 'no purchase necessary' line that they all include in their fine print. I have done some looking into it and there are various responses on the web. Some are saying that this only pertains to contest that are advertised on the airwaves (radio, tv). I was wondering if anyone could clarify things.

    The real reason I ask is that I would like to offer cash prizes on a website, but only if people buy something. Lets say for example I was selling ad space on my site and anyone who buys a spot gets entered in a monthly raffle. Is this allowed or do I have to open the contest up to everyone and their mother?
     
    eruct, Dec 13, 2007 IP
  2. hav0c

    hav0c Notable Member

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    #2
    Your idea wouldn't qualify as a "No Purchase Required/Necessary".

    No Purchase Required is commonly used when a website for example that sells things runs a contest, and is letting you know that you don't have to purchase anything to enter and a purchase will not increase your chances of winning.
     
    hav0c, Dec 13, 2007 IP
  3. domainsusi

    domainsusi Peon

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    #3
    They just want you to enter to get your email address

    Don't hold your breath ..........
     
    domainsusi, Dec 13, 2007 IP
  4. eruct

    eruct Well-Known Member

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    #4
    Thanks hav0c.

    @domainsusi. What? Are you referring to my signature... if so, that has nothing to do with the question.
     
    eruct, Dec 13, 2007 IP
  5. AstarothSolutions

    AstarothSolutions Peon

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    #5
    The reason they do "no purchase necessary" (in the uk at least) is because of the legal definition of gambling.

    If you exchange money for a chance to win something it is gambling and therefore requires a license, age restrictions and a whole host of other regulation where as by adding no purchase necessary it becomes a prize draw which is much less regulated and doesnt require a license in most cases.

    Here at least there are some ways round it because gambling is basically considered pure luck (though most poker players etc would say differently) and therefore if you add an element of skill to the competition then it goes from gambling to a competition for which the laws are more relaxed at this time. These laws in the UK are changing however (dont think it has taken effect) as some of the "skill" games are simply asking questions like "what colour is the sky?" to get round the laws.
     
    AstarothSolutions, Dec 14, 2007 IP
  6. domainsusi

    domainsusi Peon

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    #6
    No eruct - sorry you misunderstood - my response was to your question regarding free sweepstakes signups.
    Just sign up for one or two and you will see your mailbox fill with spam. :)
     
    domainsusi, Dec 14, 2007 IP
  7. Jim Guinn

    Jim Guinn Peon

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    #7
    Sweepstakes-type promotions that require a purchase by participants are illegal in the United States.
     
    Jim Guinn, Dec 14, 2007 IP