Showing posts with label Sweepstakes. Show all posts
Showing posts with label Sweepstakes. Show all posts

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.