The First Rule of Giveaways: Don't Forget the Rules

>> Tuesday, March 8, 2011

It's a routine we've repeated over and over here at Ecobunga!

We find a great green giveaway. We throw our hands up in the air. We shout "Ecobunga!". And then, the hands waft slowly and sadly downward, as we come to realize that the giveaway sponsor did not include any official rules. And, alas, we have no choice but to move on to the next promotion.

Case in point: Eucalyptus Magazine, which bills itself as "the San Francisco Bay Area’s resource for green and health-conscious lifestyles", is currently running some terrific giveaways -- from winning an electric bike to a Tesla Roadster test drive to a $100 organic produce basket. To enter, you are asked to fill out a form. But nowhere on the page is a link to any official rules.  And that's a big no-no.

What are official rules? In a nutshell, they're the guidelines for your contest or sweepstakes which can't change once you start the promotion. According to the Lustigman Firm, attornies who specialize in marketing and advertising legal issues, at a minimum you need to state:

1) A no purchase is necessary;
2) start and end dates;
3) eligibility requirements (age, residency, also specify exclusions);
4) method to enter – be sure to also include a “no purchase” method of entry;
5) any limitations on the number of entries by a signal person or household;
6) odds of winning;
7) description and value of the prize(s);
8) how the winner(s) will be selected and notified;
9) restrictions on receiving the prize; and
10) and sponsor’s name and address.
You can read more from the Lustigman Firm about sweepstakes law basics here. We would add to the above that you should specify the total number of winners and include a prominent link to your privacy policy (even if it's in your footer, add it again right by the entry form.) 

Why the fuss over official rules? 

Well, aside from the legal requirement, it's smart marketing.  Giveaways can provide fertile ground for spammers and scammers -- not-very-nice people who run fake sweepstakes in order to collect unsuspecting users' email addresses and other personal information.  In order to make sure your company is not perceived as one of these evil-doers, you need to do everything you can to make sure your giveaway looks (and is!) legitimate.   And if your giveaway is legit, you'll get more entrants.  It's as simple as that.

Official rules, rather than being viewed as a legal burden, should be viewed as an opportunity to paint your company as professional and transparent.  It's the same idea behind including a link to your privacy statement right by the entry form -- it demonstrates sensitivity to your entrants' understandable privacy concerns. 

Plus, you can use official rules strategically to hone your promotion's target audience. 

For example, let's say Dave owns a solar roof installation company in Denver and would like to run a giveaway for a new solar roof (thanks, Dave, great prize!) More than likely, Dave would prefer that the promotion generate qualified leads, i.e. home-owning legal residents of Colorado over the age of 18, and that the winner be a Colorado resident to maximize local press coverage.  No problem, Dave just needs to state those requirements in the official rules.  If, when he goes to select the winner, he randomly picks a 16 year-old living with her parents in a rental in New Jersey, no worries.  The official rules, the contract between Dave's company and the giveaway entrants, clearly state that the person was ineligible to enter and Dave can pick another winner.

So, Eucalyptus Magazine and all other green giveaway sponsors -- the first rule of giveaways is short and sweet and sure to make your promotion a winner:

Don't forget the rules.

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