Dec 15, 2017

Contest vs. Sweepstakes

Some people use the two terms interchangeably, but there is actually a large difference between the two.

In a contest, you might be evaluated based on an essay, a cheesecake recipe, or some kind of design. A panel of judges makes a subjective determination based on the judging criteria outlined in the fine print.

In a sweepstakes, luck takes the place of talent. All entries are given equal consideration and tossed into a random drawing.

According to the many state and federal laws, charging money for a sweepstakes entry would classify it as a lottery, and that is usually illegal, unless it is being sponsored by a state government. Contests, on the other hand, can charge an entry fee since there is a degree of skill involved.

In 2006, the CVS pharmacy chain was ordered to pay $152,000 in civil penalties in New York after they promoted a “sweepstakes” in which entries were automatically submitted for customers buying Nicorette gum; the chain did not make the offer available to people who did not buy the product making it no equal consideration.

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