Sweepstakes Legal Question - No purchase necessary BUT subscribers ONLY

travelfiend

travelfiend

Member
Didn't see a thread on this doing a search so hope this is not a missed topic.

I am just curious how some sweepstakes can say No purchase necessary but then limit entry to subscribers. For example, I list the partial rules to the following sweeps. NO where in rest of rules is there an AMOE listed. Not sure how this is legal??? Any thoughts?

Thanks!

Star Wars Awakens Sweepstakes

OFFICIAL RULES
NO PURCHASE NECESSARY.

AND WHERE PROHIBITED BY LAW.

1. Description: The Star Wars Awakens Sweepstakes (“Sweepstakes”) begins on May 4, 2016 at 12:01 a.m. Eastern Time (“ET”) and ends on May 31, 2016 at 11:59 p.m. ET (“Sweepstakes Period”). Sponsor’s computer shall be the official clock for purposes of the Sweepstakes and all times (as hereinafter defined) refer to ET.

2. Eligibility: Open to current DIRECTV® subscribers in good standing as of May 3, 2016 and members of the subscriber’s household, who are eighteen (18) years of age or older as of the date of entry, and who are permanent legal residents of the fifty (50) states of the U.S. and the District of Columbia (“D.C.”), (excluding Guam, Puerto Rico, and all other U.S. territories and possessions), physically located and residing therein. Subscribers must have either a valid social security number and/or a valid U.S. personal tax identification number. Employees and agents of Buena Vista Television, LLC (“Sponsor”), The Walt Disney Company, WABC-TV, American Broadcasting Companies, Inc., Disney ABC Domestic Television (“DADT”), Disney Destinations, LLC, DIRECTV, LLC, Sweepstakes administrator, their respective advertising and promotion agencies, and those involved in the production, development and handling of the Sweepstakes, their respective agents, officers, prize suppliers, parent companies, affiliates and subsidiaries (collectively “Sweepstakes Entities”), and members of their immediate families (parents, children, siblings, spouses, domestic partners) and/or persons living in the same household as such persons, whether related or not, are ineligible to enter the Sweepstakes.
 
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travelfiend I did a search

Boot Camp #5: Customer-only sweepstakes | Thompson Coburn LLP - JDSupra


At least one court has held that sweepstakes with restricted eligibility requirements are legal, so long as the requirements are wholly unrelated to the payment of consideration. In other words, if the sweepstakes is limited to individuals who had responded to earlier mailings by purchasing products and the customers were not lead to believe that they must purchase products in order to enter the sweepstakes, there is no consideration. That court found that if the sweepstakes had only one eligibility requirement — that the entrant be a past customer — the customer-only sweepstakes did not hinge on the payment of consideration, and such a sweepstakes would not be illegal. But that is only one court in one state. This issue is still very unsettled.

Your example "Open to current DIRECTV® subscribers in good standing as of May 3, 2016" and the start date of May 4, 2016 means yes, it IS legal, because you could NOT subscribe/become a customer & be eligible after the sweeps started
 
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slgibbs1 said:
I was wondering the same thing. Sirius are only open to subscribers and now this one:
https://capitalonebigpayoff.com/en-us/Rules?linkId=42732367

So, I guess if they don't offer to sell you anything, they can limit who is eligible
Click to expand...

And they mean it!


have an existing Capital One Auto Finance Account prior to September 16, 2017.

In order to be awarded a Grand Prize, First Prize, Second Prize, or Third Prize (each defined below), an individual must have his/her account current (i.e., no more than [3] days past due) as of November 30, 2017 and cannot have incurred any fees during the Sweepstakes Period.

Note: Individuals with accounts in open bankruptcy, discharged bankruptcy, written off, deficiency, garnishment, deceased, legal hold, and cease & desist statuses are not eligible to enter the Sweepstakes.


FOR;

CapitalOneBigPayoff.com {Account} The Capital One Auto Finance Big Payoff Sweepstakes

Capital One Auto Finance Account members

Enter to win Grand Prize (1): The grand prize winner will have his/her outstanding Capital One Auto Finance Account (maximum $60,000) paid by Sponsor and receive a check made out to the grand prize winner for the value of thirty-three percent (33%) of the account payment (maximum $20,000) (“Grand Prize”). If the Grand Prize winner’s account has been paid in full at the time of winner notification, Sponsor will provide a check to the Grand Prize winner for a value equal to (i) the balance due on the Grand Prize winner’s account at the time of Entry (the “Entry Balance”) (maximum $60,000) and (ii) thirty-three percent (33%) of the Entry Balance (maximum $20,000), subject to Sponsor’s discretion. The ARV of the Grand Prize is up to $80,000.
First Prize (1): The first prize winner will have each of his/her next twelve (12) monthly Capital One Auto Finance Account payments paid by Sponsor (maximum $6,000 total value) and receive a check made out to the first prize winner for the value of thirty-three percent (33%) of the total account payments (maximum $2,000) (“First Prize”). If the first prize winner has less than twelve (12) months remaining on his/her Capital One Auto Finance Account, then Sponsor will pay the remaining months on the first prize winner’s Account and provide a check to the first prize winner for a value equal to (i) twelve (12) monthly Account payments minus the amount paid by Sponsor to satisfy the Account (maxium $6,000) and (ii) thirty-three percent (33%) of twelve (12) monthly Account payments (maximum $2,000). One (1) First Prize will be available in the Sweepstakes. The ARV of the First Prize is up to $8,000.
Second Prize (1): The second prize winner will have each of his/her next six (6) monthly Capital One Auto Finance Account payments paid by Sponsor (maximum $3,000 total value) and receive a check made out to the second prize winner for the value of thirty-three (33%) of the total account payments (maximum $1,000) (“Second Prize”). If the second prize winner has less than six (6) months remaining on his/her Capital One Auto Finance Account, then Sponsor will pay the remaining month(s) on the second prize winner’s Account and provide a check to the second prize winner for a value equal to (i) six (6) monthly Account payments minus the amount paid by Sponsor to satisfy the Account (maximum $3,000) and (ii) thirty-three percent (33%) of six (6) monthly Account payments (maximum $1,000). One (1) Second Prize will be available in the Sweepstakes. The ARV of the Second Prize is up to $4,000.
Third Prize (1): The third prize winner will have each of his/her next three (3) monthly Capital One Auto Finance Account payments paid by Sponsor (maximum $1,500 total value) and receive a check made out to the third prize winner for the value of thirty-three (33%) of the total account payments (maximum $500) (“Third Prize”). If the third prize winner has less than three (3) months remaining on his/her Capital One Auto Finance Account, then Sponsor will pay the remaining month(s) on the third prize winner’s Account and provide a check to the third prize winner for a value equal to (i) three (3) monthly Account payments minus the amount paid by Sponsor to satisfy the Account (maximum $1,500) and (ii) thirty-three percent (33%) of three (3) monthly Account payments (maximum $1,000). One (1) Third Prize will be available in the Sweepstakes. The ARV of the Third Prize is up to $2,000.
Fourth Prizes (100): Each fourth prize winner will receive a code redeemable for a $100 retailer gift card in an eGift catalog (“Fourth Prize”). Each Fourth Prize code will be sent to a verified winner in an e-mail with a link to the eGift catalog website and redemption instructions. The e-mail will be sent to the e-mail address corresponding with the verified winner’s Capital One Auto Finance Account, including any updated email address provided by the verified winner at Entry. Available retailer gift cards will be chosen by Sponsor in its sole discretion. Codes expire at 11:59:59 PM ET on October 1, 2018; expired codes will not be replaced. The use of a code is subject to the terms and conditions set forth by the issue which shall govern the use of the code. Use of a code constitutes the user’s acceptance of any terms and conditions associated with the code. A code will not be redeemed or exchanged for cash, except where required by law. A code will not be replaced or replenished if it lost, stolen, damaged, destroyed or used without a winner’s permission and will be voided if altered or defaced. All retailer gift cards are subject to the terms and conditions set forth by the issuer. One hundred (100) Fourth Prizes will be available in the Sweepstakes. The value of each Fourth Prize is $100. The total ARV of all Fourth Prizes is $10,000.
Total ARV: The total ARV of all available prizes (each a “Prize”) in the Sweepstakes is up to $104,000.

Restrictions: 18+ US *have an existing Capital One Auto Finance Account prior to September 16, 2017
Limit: 1 Per Person
Added: 10-01-2017
Expires: 11-30-2017 11:59 PM EST
Hits: 716
Rules


Entry Category: One Entry
 
"No Purchase Required" means a sponsor will usually either offer an AMOE via mail-in/call-in or email

BUT, if they don't offer an AMOE, they CAN limit who is eligible to those who have either purchased their products/services in the past/future, and/or, limit it to those who are a current customer PRIOR to the start of the promo



amyshulk said:
travelfiend I did a search

Boot Camp #5: Customer-only sweepstakes | Thompson Coburn LLP - JDSupra


At least one court has held that sweepstakes with restricted eligibility requirements are legal, so long as the requirements are wholly unrelated to the payment of consideration. In other words, if the sweepstakes is limited to individuals who had responded to earlier mailings by purchasing products and the customers were not lead to believe that they must purchase products in order to enter the sweepstakes, there is no consideration. That court found that if the sweepstakes had only one eligibility requirement — that the entrant be a past customer — the customer-only sweepstakes did not hinge on the payment of consideration, and such a sweepstakes would not be illegal. But that is only one court in one state. This issue is still very unsettled.

Your example "Open to current DIRECTV® subscribers in good standing as of May 3, 2016" and the start date of May 4, 2016 means yes, it IS legal, because you could NOT subscribe/become a customer & be eligible after the sweeps started
Click to expand...
 
Contests, Sweepstakes, and Lotteries:

https://www.thebalanceeveryday.com/guide-to-contests-sweepstakes-and-lotteries-896872


What Are Sweepstakes?

Sweepstakes are prize giveaways where the winners are drawn at random from among all valid entries. Prizes can range from stickers and t-shirts to houses, cars, and enormous cash wins. Sweepstakes sometimes offer additional entries for various activities like referring friends, sharing the sweepstakes on social media, or visiting a website or watching a video.


What Are Contests?

Contests are giveaways that select winners based on merit. The entry with the funniest pick-up line, most moving essay, most scenic photograph, tastiest recipe, or whatever else fits the contest's theme will be chosen as the winner. Public voting can also be used to help select contest winners.


What Are Lotteries?

Lotteries are prize drawings where entrants must pay money to buy a chance to win. Lotteries are heavily regulated and are usually only legal if they are run by the government. Powerball and Mega Millions are two popular lotteries in the United States. A raffle is a type of lottery that is usually run by charities and small groups as opposed to the government.


The Difference Between Sweepstakes and Lotteries:

The U.S. has strict laws barring private lotteries, so in order to be legal, sweepstakes have to differentiate themselves from lotteries. A lottery is defined by law as a promotion that has all three of the following elements:


  1. The promotion is offering prizes that have value
  2. The winners of the promotion are chosen at random
  3. There is an element of consideration


    To avoid being classified as an illegal lottery, sweepstakes must ensure that at least one of these elements is missing. Because prizes and luck are central to sweepstakes, legitimate sweepstakes usually eliminate the element of consideration.



    Consideration is loosely defined as something of monetary value to the company offering the promotion. This could be straight-up money (such as purchasing a ticket for entry) or something of indirect value (such as needing to dine at a sponsor's restaurant to get an entry form).



    That means you will never have to pay to enter legitimate sweepstakes and purchasing a product will not improve your odds. Any sweepstake that asks you to pay to play is a scam. If a legitimate giveaway requires you to buy a product to enter, it must also offer a non-purchase entry method that lets people enter without spending any money.



    Some states have their own sweepstakes laws and regulations in addition to federal laws. For example, sweepstakes sponsors in New York must bond prizes valued above $5,000.


    The Difference Between Sweepstakes and Contests

    Many people use terms "contests" and "sweepstakes" interchangeably, but there is a difference. Contests are giveaways that have some element of skill to them. For example, entrants need to answer a trivia question, write an essay, or create a recipe to participate.


    This rules out the second element of an illegal lottery: winners chosen by chance. This means that it is legal to charge a fee to enter contests or to have an element of consideration that is beneficial to the sponsor (i.e., a recipe that will be used in advertisements for a product).


    In Canada, giveaways also have to avoid the same three indications of a lottery, but they usually also eliminate the element of chance by asking a skill-testing question. For that reason, Canadians usually call all of their giveaways contests, and the people who enter them "contesters".
 
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