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A sweepstake is a game of chance, typically requiring participants to submit an (“Entry”). The winners must stand a chance to get selected randomly and there should be no requirement of specific set of skills (i.e. skills of the participant do not play a dominant role in the outcome of a sweepstake) to submit an Entry.
It is important that participation in a sweepstake is entirely free of cost. This is important to distinguish sweepstakes from gambling. No purchase or subscription to your products or services should be mandatory to enter-into a sweepstake . Cost may also include costs in-kind, therefore you should ensure that participants are not required to put significant efforts or spend long periods of time to submit their Entry in a sweepstake (for e.g. sponsor of a sweepstake can ask the Participant to answer simple questions or read a blog, like or comment on a particular page on FB, etc. but cannot ask the Participant to develop a mobile app or develop programming codes to submit entry under a sweepstake).
Since minors (i.e. individuals below 18 years of age) do not have the capacity to enter into binding contracts, therefore minors should not typically be allowed to enter into contests. However, in some cases even a minor can enter if you have valid proof of agreement to the terms and conditions of the contest by their legal guardian on their behalf. The terms and conditions should clearly state the manner of participating in the sweepstake.
Every Sweepstake should have clear start and end date.
The terms and conditions of a contest should clearly state how you will use the information (including any personal information, such as the names and contact details of participants) generated by the sweepstake.
The terms and conditions should clearly state the manner in which the winners of the sweepstake will be declared/announced.
The terms and conditions of a sweepstake should clearly declare how many and what prizes (and, their total worth) are being offered as benefits to the winners and how they can claim (or redeem) their prize and how many prizes (for e.g. whether the same participant is eligible to receive more than one prizes in the same sweepstake).
It is common that participants, in efforts of increasing their chances of winning, will submit multiple entries, and it is therefore important to restrict the number of entries that can be submitted by a Participant in a sweepstake.
In order to manage unforeseen/unpredictable consequences you should always retain the right to modify the terms and conditions of a sweepstake.
The objective of the participants in sweepstakes should not be illegal, immoral, obscene or against public policy.
1 Gambling is illegal in India as per the Public Gambling Act
1 Several states in India allow schemes where the participant is a purchaser of a specified product and stands a chance to win prizes by virtue of his/her purchase, but since all the sweepstakes launched by India will generally be applicable throughout India hence please ensure that purchase is not mandatory to participate in a sweepstake.
The terms and conditions of a sweepstake should typically include an indemnity from the participant saving you from any losses arising from breach of applicable terms and conditions and otherwise from the participation of the Participant in the sweepstake.
In order to hedge unnecessary litigation, the terms and conditions should clearly state that disputes arising out of a sweepstake shall be resolved through a sole arbitrator to be appointed by you.
Every sweepstakes should have applicable official terms and conditions.