Running prize promotions in the USA

Many brands reap the benefits of running promotions in the USA, increase their brand awareness, increase their sales and increase consumer loyalty. However, running promotions in the USA is very different to running promotions in the UK, for starters prize draws are called sweepstakes. As experts on running prize promotions, sweepstakes and competitions around the world and these are our top tips and watch-outs for running promotions in the USA.

• Terms and Conditions in the USA follow a very different format to those for UK promotions, generally being longer, more complicated, and onerous.
• If the prize pool is over a certain amount, then the promotion will need to be registered in New York and Florida, this can be costly if not done on time.
• Prize bonds are required when the promotion is registered, which means that the if the promoter is unable to provide the prize, i.e. they go bankrupt, the prize bond will pay out.
• Certain states require detailed winners list, which if not done correctly will result in fines.
• If a purchase is required, then an alternative method of entry will need to be set up.
• You cannot give away alcohol or tobacco as a prize.
• If prizes are over a set amount, then the law requires that tax be paid via a W9 form, organised by the Promoter.
• It is recommended to ask winners to sign waivers when the prizes are linked to holidays or experiences.
• Don’t forget the dates are the other way round when written out!

There are lots of points to be aware of when running promotions in the USA, if you need any guidance or have any questions, give us a call or email us at gemma.cutting@promoveritas.com.