What are the Legal Implications of Giveaways?
As your company grows you start to discover new ways to market your products and your company. One of the unique ways to market your products, your brand, or your company as a whole is through Giveaways. Giveaways can be a wonderful way to gain exposure not only to specific products but also to your company in a more general way.
The following list indicates a starting point for the items that you need to be aware of when considering a Giveaway for marketing and further exposure in your industry. This is just a starting place and is not an all-encompassing list for every situation.
Name of Giveaway, branding, and strategy plays a key role in this step.
The official name and/or description of the prize that you will be giving away.
Approximate retail value of the prize, in addition to anything else that may be included, if anything at all.
Anything specific about the prize, which would include details that would help those you are marketing to understand whether they would even want the prize.
Beginning and ending dates and start and end times of the entry period.
The date that the winner will be selected.
How will the winner be notified, this can be via email, phone, or mail, but it must be outlined.
How long does the winner have to collect the prize?
If the winner can’t claim the prize, will there be a second random drawing or additional drawings?
How does the winner collect the prize? This will vary greatly on the type of prize that you are intending to give away.
Name of contact at your company who will respond to requests for official rules or winner name, and address where requests can be mailed to.
Any necessary disclaimers if you are giving away an item that your company does not directly produce or sell. Think tickets to a concert, a gift card to a popular vendor, et cetera.
Will you have specific restrictions on who can win, or will the potential winner be subject to approval?
Anything else that may disqualify a potential winner.
What steps are required to become eligible for the giveaway? Is anything required – like an online account, specific payment method, etc.?
In Conclusion
Giveaways can be a great way to gain exposure, widen your current client pool, or strengthen your current client relationships. Albeit there are a lot of moving pieces that must be considered to accomplish a Giveaway correctly and protect your company. Think about the possible outcomes, and the possible missteps that could happen, and work towards mitigation of those risks. As a reminder, this list is not exhaustive and may change depending on your company’s specific needs or Giveaway. You can always connect with legal experts, such as those on our team, to get thoughtful advice and guide you through this entire process.
Other articles you might like...
