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Ray
Ray, Lawyer
Category: Legal
Satisfied Customers: 40160
Experience:  30 years in civil, probate, real estate, elder law
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What are the laws for having an online contest Do I need to

Customer Question

What are the laws for having an online contest? Do I need to abide by each states laws even though I live in Oregon? Also if I had the people who visit the site be the judges would this be ok. Would I need to creat a business if I plan to do this long term?
Submitted: 7 years ago.
Category: Legal
Expert:  Ray replied 7 years ago.
Thanks for your question.FTC here has rules and regulations over contests.

Here is information about their rules and regulations.

Sweepstakes-type promotions that require a purchase by participants are illegal in the United States. Other agencies, including the United States Postal Service and the Federal Communications Commission, also enforce federal laws governing contests and prize promotions. And each state has laws that may require promoters to make disclosures, seek licensing, or post a bond. Since state laws vary, check with the Attorney General's Office in the states in which you plan to advertise. To get their phone numbers, see the Consumer's Resource Handbook. If a contest or promotion involves telephone calls, the FTC's Telemarketing Sales Rule requires specific disclosures, such as the odds of winning a prize, how to participate without buying anything, and that no purchase or payment is required to win. If pay-per-call services are involved, the FTC's 900 Number Rule requires certain disclosures. For more information, see Complying with the Telemarketing Sales Rule and Complying with the 900 Number Rule.Sweepstakes-type promotions that require a purchase by participants are illegal in the United States. Other agencies, including the United States Postal Service and the Federal Communications Commission, also enforce federal laws governing contests and prize promotions. And each state has laws that may require promoters to make disclosures, seek licensing, or post a bond. Since state laws vary, check with the Attorney General's Office in the states in which you plan to advertise. To get their phone numbers, see the Consumer's Resource Handbook. If a contest or promotion involves telephone calls, the FTC's Telemarketing Sales Rule requires specific disclosures, such as the odds of winning a prize, how to participate without buying anything, and that no purchase or payment is required to win. If pay-per-call services are involved, the FTC's 900 Number Rule requires certain disclosures. For more information, see Complying with the Telemarketing Sales Rule and Complying with the 900 Number Rule.