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Can I offer contests that involve social media promotions in Indiana? What are the requirements?
Requirements for Offering Contests with Social Media Promotions in Indiana
Indiana does not have specific laws or regulations that govern contests and promotions on social media platforms. However, businesses that offer contests on social media must comply with the general advertising and marketing laws in Indiana.
According to the Indiana Bureau of Motor Vehicles, Indiana Criminal Justice Institute, and Indiana Department of Labor, businesses must comply with the following requirements when running contests or promotions [1]:
- The contest must be conducted in a fair and impartial manner.
- The rules of the contest must be clearly stated and made available to all participants.
- The prizes must be awarded as advertised.
- The contest must not be misleading or deceptive.
Additionally, businesses must comply with the Prizes and Gifts Act in Illinois, which requires that written promotional prize offers must contain certain disclosures [5]:
- The true name or names of the sponsor and the address of the sponsor’s actual principal place of business.
- The retail value of each prize the person receiving the notice has been selected to receive or may be eligible to receive.
- A disclosure of the odds of winning each prize offered.
Conclusion
Businesses that offer contests with social media promotions in Indiana must comply with the general advertising and marketing laws in Indiana and the Prizes and Gifts Act in Illinois. The contest must be conducted fairly, the rules must be clearly stated, and the prizes must be awarded as advertised. Additionally, the written promotional prize offer must contain certain disclosures.
Source(s):
- [1] ‘TXT L8R’ Social Media Contest Offers $5,000 Scholarships
- [5] 815 ILCS 525/ Prizes and Gifts Act.
Jurisdiction
Indiana