What Are The FTC Rules on Cash Competitions?

6 replies
Hey guys,

I am just wondering what the new FTC rules say about running cash competitions.

I have a site where I give away a thousand bucks each week and on the page I have testimonials from people who have won the prize before.

I just want to make sure those testimonials are fine, I'm guessing they are because it's a competition not a case study.

It also clearly states that they can WIN the money not EARN it if they join the program.

Are these testimonials okay or should I remove them?

Your help is much appreciated

Tristan
#cash #competitions #ftc #rules
  • Profile picture of the author Floyd Fisher
    Getting legal advice on Warrior Forum is like trying to get off heroin with the help of a heroin addict.

    If you got questions about that, please please please talk to a lawyer.
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  • Profile picture of the author seasoned
    Such statements as floyd just made are no more true than now. I'm not even sure which agencies would be involved with such a thing in the US, although the FTC WOULD be one. LUCKILY, if you don't require any payment or purchase, you are PROBABLY OK. But I am NOT a lawyer.

    AND, there may be AUSTRALIAN laws.

    Steve
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  • Profile picture of the author JohnMcCabe
    If "joining your program" involves a fee, and only program members can win, you might want to specifically check if any lottery-related laws are involved.
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    • Profile picture of the author Robyn8243
      Originally Posted by JohnMcCabe View Post

      If "joining your program" involves a fee, and only program members can win, you might want to specifically check if any lottery-related laws are involved.
      If you are seriously interested in not violating any laws, you should definitely check with a local attorney who is knowledgable in this area. There are many rules involved in any kinds of promotions that offer any kind of "prize." If you ever look at any promotions by larger companies, you will always see a long list of terms, conditions and disclosures, and there are usually a number of geographic areas where they do not allow any participation because of local regulations.

      Robyn
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      • Profile picture of the author JohnMcCabe
        Originally Posted by Robyn8243 View Post

        If you are seriously interested in not violating any laws, you should definitely check with a local attorney who is knowledgeable in this area. There are many rules involved in any kinds of promotions that offer any kind of "prize." If you ever look at any promotions by larger companies, you will always see a long list of terms, conditions and disclosures, and there are usually a number of geographic areas where they do not allow any participation because of local regulations.

        Robyn
        Absolutely...

        My state of Florida is one of those areas frequently excepted out of contests and sweepstakes. My wife's hobby is to sit in front of the laptop and enter these things while watching TV at night, and it cheeses her off to find a juicy one and find out she isn't eligible...

        That's why I mentioned checking for lottery laws...and should have added "check with a competent attorney"...
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  • Profile picture of the author DAS_Matt
    Nothing will get you in trouble with the law faster than listening to internet board lawyers. ;>))
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