Question

Topic: Advertising/PR

Rules For Prize Contest In The Us

Posted by Anonymous on 1500 Points
We are launching a contest to our list of 180,000+, mostly in the US and intend to offer prizes worth around $6000 including hotel and flight to attractive location in the US (there will be no cash equivalent).

We will be asking entrants to write a 200-word reason as to why they should win. Judging will be by a panel drawn from our management.

What legal pitfalls do I need to cover. Can anyone advise on writing the rules of the contest or provide an example?

Many thanks,

Ken
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RESPONSES

  • Posted by SRyan ;] on Member
    Ken, other members have asked a similar question here in the forum. You might glean some good insights here, for example:

    Contest rules

    Good luck!

    Shelley
  • Posted on Accepted
    Basically the idea behind the legal Terms and Conditions is the fact that the process of determining the winner should be totally bias free.
    So a panel with your own management as experts might not constitute Bias Free- Hire an expert to evaluate the 200 word essays.
    Also have a third party audit-able process which shows that there has been no interference or tampering with the selection of winner.

    A copy of the usual Terms and Conditions is as follows. Pls get a lawyer to modify it for you.

    1. Unless otherwise specified in special contest Terms and Conditions, no person may enter any contest more than once.


    2. All prizes must be collected within 3 months from the date of winning. After that time, unclaimed prizes will be dealt with according to legislative requirements. YOUR COMPANY will not notify winners of time remaining. It is the sole responsibility of winners to collect their prize.


    3. Prizes must be claimed in person unless winner is otherwise advised. Identification which includes a photograph will be required (examples include drivers licence/passport/student card where photo included). Where YOUR COMPANY elects to post a prize to a winner no responsibility will be accepted by YOUR COMPANY for the safe and effective postal delivery of the prize.


    4. In special situations, and subject to the absolute discretion of YOUR COMPANY, a winner may nominate a designated representative to collect a prize. The representative will be required to present written authorisation from the winner and identification which includes a photograph for both the winner and their representative.


    5. In the event that a winner chooses not to accept a prize, they forfeit any and all claims to that prize, which will be dealt with according to the absolute discretion of YOUR COMPANY subject to legislative requirements.


    6. Winners under the age of 18 must be accompanied by a parent/guardian when collecting their prize. Both the winner and the parent/guardian must sign this agreement and show identification which includes a photograph.


    7. A copy of these General Contest Rules must be signed and endorsed by any winner upon request by YOUR COMPANY.


    8. Prizes are non transferable, must (where applicable) be used on the dates specified and may not be redeemed for cash.


    9. All prizes are accepted entirely at the risk of the winner, and YOUR COMPANY excludes all warranties in connection with any prize to the extent permitted by law.


    10. YOUR COMPANY, its agencies, affiliates, sponsors and representatives are not responsible for defective prizes or misuse of any prize, or for any claims, liability, loss or damage arising out of or in connection with any contest promoted by YOUR COMPANY.


    11.All contestants release from, and indemnify Austereo Pty Ltd (ACN 007 914 641) against, all liability, cost, loss or expense arising out of acceptance of any prize(s) or participation in any contest including (but not limited to) personal injury and damage to property and whether direct or consequential, foreseeable, due to some negligent act or omission or otherwise.


    12. If a specified prize becomes unavailable, YOUR COMPANY may substitute a replacement prize at its absolute discretion.


    13. Unless otherwise specified, the class of travel for any travel prize incorporating an airfare is economy class.


    14. Competitors may be required by YOUR COMPANY to participate in a photo, video and/or film session and acknowledge that YOUR COMPANY has the right to use such publicity photos, videos and/or films in any medium and in any reasonable manner it sees fit, unless that person advises YOUR COMPANY at the time of entering the relevant contest that he/she wishes to retain his/her anonymity.


    15. Contest entries and material submitted in connection with any contest (whether in written, audio, electronic or visual form, or a combination of those) or any photographs, video and/or film footage and/or audio recording taken of competitors become the property of YOUR COMPANY which may use the material in any medium and in any reasonable manner it sees fit. Copyright in any such material becomes and remains the sole property of YOUR COMPANY.


    16. YOUR COMPANY may publicise, broadcast or otherwise disclose a competitor?s name, character, likeness, statements or any recording of their voice in advertising or promotional activities concerning a specific contest, or YOUR COMPANY contests generally. YOUR COMPANY may promote or advertise that a winner has won a contest.


    17. Winners are responsible for any and all taxes payable as a result of a prize being awarded or received.

    18. If in the course of a contest:

    a telephone line breaks up or drops out or
    there is a dispute arising out of the use of telephone lines in a contest (including situations where multiple telephone lines are used) or
    two telephone lines are crossed during a phone in contest
    YOUR COMPANY in its absolute discretion:

    may disqualify the relevant caller or callers
    will not be responsible for awarding a prize to the relevant caller or callers and
    may award the prize to another person according to its absolute discretion.
    In all such events all decisions of YOUR COMPANY will be final and no discussion or correspondence will be entertained.


    19. All entries by internet are sent entirely at the risk of the entrant. If there are any difficulties arising out of the internet or any associated equipment YOUR COMPANY may at its absolute discretion disqualify the entire entry or any portion thereof.


    20. All winners of all prizes must sign these General Contest Rules and any YOUR COMPANY special contest Terms and Conditions both in a form prescribed by Austereo Pty Ltd in order to receive their prize. If a winner is under the age of 18, their parent/guardian may, at the absolute discretion of YOUR COMPANY, be required to sign these documents.


    21. The winner(s) of the major prize(s) may at the absolute discretion of YOUR COMPANY be required to execute a Deed of Release and Indemnity in a form prescribed by Austereo Pty Ltd in order to receive the major prize. If a winner is under the age of 18, their parent/guardian may, at the absolute discretion of YOUR COMPANY, be required to sign the Deed of Release and Indemnity.


    22. YOUR COMPANY may incorporate information from entrants in any contest(s) in any data base to be used for the purpose of its business.


    23. Where YOUR COMPANY has special contest Terms and Conditions in relation to a particular contest, then they will prevail to the extent of any inconsistency between those special contest Terms and Conditions and these General Contest Rules.


    24. Persons under the age of 18 years are ineligible to enter any contest where the prize consists of a vehicle or alcohol or a voucher for alcohol or where the special contest Terms and Conditions otherwise provide.


    25. A failure by YOUR COMPANY to enforce any of these General Contest Rules in any instance(s) will not give rise to any claim by any person.


    26. YOUR COMPANY may terminate any contest at any time at its absolute discretion. In the event of such termination, YOUR COMPANY may at its absolute discretion elect not to award any prize in respect of the terminated contest.


    Special restrictions or qualifications may apply to particular contests, in which case an addendum to these General Contest Rules will be made.

    These General Contest Rules may be changed at any time by YOUR COMPANY.

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