Can I offer contests that involve merchandise prizes in Wisconsin? What are the requirements?

Contests with Merchandise Prizes in Wisconsin

In Wisconsin, contests that involve merchandise prizes are legal as long as they comply with the state’s laws and regulations. The following are the requirements for offering contests with merchandise prizes in Wisconsin:

1. No purchase necessary: Wisconsin law requires that contests must be open to all individuals, regardless of whether they make a purchase or not [WIST 945.01(1)].
2. Clear and conspicuous disclosure of material terms: The material terms of the contest, including the rules, prizes, and eligibility requirements, must be clearly and conspicuously disclosed to participants [WIST 945.03(1)].
3. Prizes must be awarded: All prizes offered in the contest must be awarded as described in the rules [WIST 945.03(2)].
4. No false or misleading advertising: Contest advertising must not be false or misleading [WIST 945.04].
5. Registration and bonding requirements: If the total value of prizes offered in the contest exceeds $5,000, the contest sponsor must register with the Wisconsin Department of Financial Institutions and post a bond [WIST 945.05].
6. Reporting requirements: Contest sponsors must file a report with the Wisconsin Department of Financial Institutions within 30 days after the contest ends [WIST 945.06].
7. Compliance with other laws: Contest sponsors must comply with all other applicable state and federal laws and regulations.

However, it is important to note that the requirements for raffles in Wisconsin are different from those for contests. Raffles require a license under s. 563.92, except for qualified organizations that meet certain criteria [WIST 563.908]. Therefore, if you are planning to conduct a raffle, you must ensure that you meet the requirements under s. 563.908.

Failure to comply with these requirements may result in civil or criminal penalties [WIST 945.07].

Conclusion

In summary, contests that involve merchandise prizes are legal in Wisconsin as long as they comply with the state’s laws and regulations. Contest sponsors must ensure that the contest is open to all individuals, disclose the material terms of the contest, award all prizes as described in the rules, avoid false or misleading advertising, register and post a bond if the total value of prizes exceeds $5,000, file a report with the Wisconsin Department of Financial Institutions, and comply with all other applicable laws and regulations. However, if you are planning to conduct a raffle, you must ensure that you meet the requirements under s. 563.908.

Jurisdiction

Wisconsin

• Gaming