Online competition for a small business

[rcik]

Hi,

I'm new to these forums and could really do with a question being answered please. I've done a search but couldn't find too many similar posts.

I am a student and run a local online marketplace website thats free to use. I want to attract more users/generate traffic and like the idea of offering a prize draw for some vouchers, where users can enter by submitting listings and referring friends to signup to the site. The prize would only be small.

The thing is I've read in various places that this could be illegal if i don't make the entry skill based or satisfy certain criteria.

Is this true? If so how do other businesses do this, such as Paypal who recently ran a campaign where users only had to 'like' their facebook page to be in with a chance of winning an iPad. Ive seen other sites too, similar to mine who have held a raffle where users only have to create an account to be in with a chance of winning.

Thanks in advance.

Rick
Student Marketplace

 

[That Guy]

I am pretty sure the rules of a competition can be totally up to you

 

[Posilan]

Hi,

I'm new to these forums and could really do with a question being answered please. I've done a search but couldn't find too many similar posts.

I am a student and run a local online marketplace website thats free to use. I want to attract more users/generate traffic and like the idea of offering a prize draw for some vouchers, where users can enter by submitting listings and referring friends to signup to the site. The prize would only be small.

The thing is I've read in various places that this could be illegal if i don't make the entry skill based or satisfy certain criteria.

Is this true? If so how do other businesses do this, such as Paypal who recently ran a campaign where users only had to 'like' their facebook page to be in with a chance of winning an iPad. Ive seen other sites too, similar to mine who have held a raffle where users only have to create an account to be in with a chance of winning.

Thanks in advance.

Rick
Student Marketplace

As long as there is no cost to enter, you are ok.

If entry is based on the purchase of a product, you have to make entry "skill based" or offer a separate way to enter for free otherwise it's classed as a "lottery" which comes under the Gambling Act 2005.

That's why phone in competitions ask "brain dead" questions that are ridiculously easy to answer to get around the law (or state you can enter for free on their website etc).

Steve

 

[BrianMartin&Co]

That's why phone in competitions ask "brain dead" questions that are ridiculously easy to answer to get around the law (or state you can enter for free on their website etc).

I thought they asked brain dead questions to get more people to phone in because everyone knows the answer therefore more MONEY it's a great swindle though.

 

[rcik]

Thank you for the swift responses, just what I needed to hear.

Rick

 

[smbchamp]

Good luck with your promotions. The problem I have seen with hosting contests is that most people don't promote the contest itself. Make sure you spend time promoting the contest (Unless you already own a popular brand, contests don't go viral by themselves)

 

[astutiumRob]

I thought they asked brain dead questions to get more people to phone in because everyone knows the answer therefore more MONEY it's a great swindle though.

Your post is
a. correct
b. banana
c. sainsburys

 

[profscooter]

On a related topic, when sites do these competitions, e.g. "Follow us on Facebook or Twitter for a chance to win an iPad", what software or other tools are available to actually make the draw and randomly select the winner?

 

[garyk]

I am pretty sure the rules of a competition can be totally up to you

Not so. It has to be a free prize draw, you cannot charge for entry into it. Technically you have to give the prize away regardless of the number of entrants even if there is only 1.

Also it has to be skill based otherwise its deemed a lottery unless you are a charity or friendly society. Thats why the TV shows have that dumb question. One to make it skill based and two, to get revenue from the calls/SMS but can still offer it as a free prize draw.

The laws are strict on prize draws.