I would like to run a sweepstakes where everyone who buys a product is
eligible to win a prize.  However, I have been told that all contests
have to have a "No Purchase Necessary" clause.  I was wondering if
there might be a website that outlines rules for contests and where I
can determine if this indeed is the case.

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Request for Question Clarification by pinkfreud-ga on 22 Aug 2002 12:04 PDT

Laws regarding contests, sweepstakes, lotteries, etc. differ from
jurisdiction to jurisdiction. Approximately where are you based (what
nation? what state/province?)

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Request for Question Clarification by sublime1-ga on 22 Aug 2002 12:38 PDT

jpbischke...

Many companies run such contests, such as the ones where
you look under a bottlecap, after buying the product,
to see if you've won. They get around the rule you mention
by including a "No Purchase Necessary" clause which allows
someone who hasn't bought the product to enter by sending
a letter or postcard to a specified address, or logging
onto a webpage to submit an entry. The information would
have to be imprinted on your product somewhere, or at
least a reference to where the rules can be viewed. Here's
a sample of "Official Rules" online:
http://www.winningkey.com/rules.html

As pinkfreud noted, the rules would need to contain clauses
specific to the state in which your business is located.
I assume she will locate these as soon as you provide
your base location.

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Clarification of Question by jpbischke-ga on 22 Aug 2002 12:53 PDT

Sorry about not giving that information.  This contest is going to be
an international one.  The parent company that will be sponsoring this
is in Ohio (I'm not sure if that matters or not).

jpbischke...

After considerable research, it seems that this is
a complex topic, indeed, and that you will probably
need to hire a lawyer to assist you in structuring
your rules.

You can review a sample of contest rules written
by Ohio companies by looking through the search
results for  "contest rules" + ohio
://www.google.com/search?num=50&hl=en&lr=&ie=UTF-8&oe=UTF-8&q=%22contest+rules%22+%2B+ohio&btnG=Google+Search

It soon becomes apparent that they are carefully
scripted legal documents, in keeping with the
tenets of contract law. As for online resources,
I came across a message in a legal message-board,
in which a lawyer was posting a request:
"Looking for 50 state compilation of contest laws"
http://lawlibrary.ucdavis.edu/LAWLIB/March99/0543.html
She noted she had "checked books in print as well
as searching ALR and all the journals on LEXIS
and Westlaw." Nor had she found an online source.

A search for "Contests and Sweepstakes" + publication
://www.google.com/search?num=50&hl=en&lr=&ie=UTF-8&oe=UTF-8&q=%22Contests+and+Sweepstakes%22+%2B+publication&btnG=Google+Search

produced a link to the Direct Marketing Association:
http://www.the-dma.org/library/guidelines/sweepstakesdosdonts.shtml
about "Sweepstakes Do's and Don'ts" which noted:

"The new law is largely a series of amendments 
to an old law (Chapter 30 of Title 39 of the 
United States Code) to make it more specific 
in preventing deceptive practices in 
sweepstakes and skill contest mailings. 
The new law does not replace the old law; 
it simply adds to or modifies it. As a 
practical matter, a marketer should consult 
the old and new laws before undertaking a 
sweepstakes mailing, as well as consulting 
with legal counsel familiar with state 
restrictions. It should be noted that the 
law applies to sweepstakes sent through 
the U.S. mail - not to sweepstakes conducted
via the Internet or telephone."

So I searched for "United States Code"
://www.google.com/search?hl=en&ie=UTF-8&oe=UTF-8&q=%22United+States+Code%22
and came up with a link to the law library
at Cornell which allows you to search the
code by Title and Section:
http://www4.law.cornell.edu/uscode/#TITLES
or to search the Titles. If you click on
Title 39, you can input searches for words
like 'contest', 'sweepstakes' 'purchase'
etc. and get some ideas of the laws. Since
most of these have to do with US Postal
code, and mailings, they may not pertain
to you, depending on the nature of your
intended contest.

This page is a search result on this site
for the word "purchase" under Title 39,
Chapter 30, and covers "no purchase necessary"
with the word "purchase" highlighted:
http://www4.law.cornell.edu/cgi-bin/htm_hl?DB=uscode39&STEMMER=en&WORDS=purchas+&COLOUR=Red&STYLE=s&URL=/uscode/39/3001.html#muscat_highlighter_first_match

You could try to model your rules after
the samples from the first link in this
answer, but I think you'd be wiser to 
engage a lawyer. It seems to me that the
complexity of contest rules is something
done to protect you from a contestant
looking for a way to profit from an
omission of some legal technicality.


Searches done, via Google:

"contest rules" + ohio
://www.google.com/search?num=50&hl=en&lr=&ie=UTF-8&oe=UTF-8&q=%22contest+rules%22+%2B+ohio&btnG=Google+Search

"Contests and Sweepstakes" + publication
://www.google.com/search?num=50&hl=en&lr=&ie=UTF-8&oe=UTF-8&q=%22Contests+and+Sweepstakes%22+%2B+publication&btnG=Google+Search

"United States Code"
://www.google.com/search?hl=en&ie=UTF-8&oe=UTF-8&q=%22United+States+Code%22

Though I was unable to find an online resource
which allows you to structure the rules of your
contest (other than the US Code site, which is
difficult to search and read), I believe I have
established that most contests, whether via the
US mail or not, do include the clause for 
"No Purchase Necessary", and that it is certainly
required for contest mailings. Additionally,
I believe I've established the wisdom of 
soliciting legal services, for your own
protection.

If you would like further clarification prior to
rating this answer, please don't hesitate to ask.

Sublime1-ga

Awesome answer!  Exactly what I was looking for.  Thanks!

Note to sublime1 and other researchers:

My clarification request, above, was simply an attempt to narrow down
the scope of research needed. I am otherwise engaged today; as I
cannot actively research this question, I have no claim upon it.

~pinkfreud