SWEEPSTAKES

In the United States consumer sales promotions known as 'sweepstakes' or simply 'sweeps' (both single and plural) have become associated with marketing promotions targeted generating enthusiasm and an incentive toward action among customers by enticing consumers to submit free entries into drawings of chance (and not skill) that are tied to product or service awareness wherein the featured prizes are given away by sponsoring companies. Prizes can vary in value from less than one dollar to more than one million U.S. dollars and can be in the form of cash, cars, homes, electronics, etc.
Sweepstakes frequently have eligibility limited by international, national, state, local, or other geographical factors.
Sweepstakes are often referred by marketing promoters as ''second-chance sweepstakes'' when utilized in conjunction with the awarding of unclaimed prizes during ''instant-win'' promotions.

Contents

Basics

Etymology

Marketing

Sweepstakes in the United States

Sweepstake in the U.K.

General structure of winning a sweepstakes prize

Sweepstakes on the Internet

Cost

Efficiency

See Also

External links

Basics

A person who enjoys entering sweepstakes as a hobby is called a sweeper. While the majority of sweepstakes promotions are open to sweepers being of eighteen years or older age, there are many sweepstakes open to entry by children of age thirteen to seventeen.
Sweepstakes generally easier and quicker to enter than contests and sweepstakes are also legally different from "contests" or "giveaways", as sweepstakes promotions are prohibited from requiring a purchase to enter. Consumer promotions advertised as contests and giveaways, however can require proof of purchase (usually in the form of submitting an original proof-of-purchase label or UPC code found on the sponsor's product packaging along with a mail entry). Sweepstakes official rules can specify daily, monthly, one-time, or unlimited entry by sweepers.

Etymology

The term originated in horse-racing, where each entrant would put up a stake, and the winner would sweep all stakes. The non-plural form ''sweepstake'' (U.K.) is probably a back-formation; compare the Belmont Stakes.

Marketing

Sweepstakes with bigger top prizes tend to attract more entries regardless of the odds of winning. Therefore, the value of smaller prizes usually total much less than that of the top prize. Firms that rely on sweepstakes for attracting customers, such as PCH and Reader's Digest, have also found that the more involved the entry process, the more entrants, in a similar way to casinoes inventing games that ''appear'' to rely partly on skill.

Sweepstakes in the United States

In the U.S., sweepstakes sponsors are very careful to disassociate themselves from any suggestion that players must pay to enter, as this would bring them into conflict with federal lottery laws. Sweepstakes typically involve aggressive enticements to enter a consumer promotion for fantastically large prizes like cars or large sums of money; there should be no cost to the entrant to enter for the prize, with the exception of possibly being placed on a promotional mailing list. Winners should also not be required to pay a fee of any type to receive their prize.^[1]
Because of the perceived deceptive nature of sweepstakes, they are heavily regulated. The U.S., Canada, and individual U.S. states all have laws covering sweepstakes, resulting in special rules depending on where the entrant lives. The U.S. Federal Trade Commission exercises some authority over sweepstakes promotion and sweepstakes scams in the United State. Notably, Canada and several European countries require entrants to solve a mathematical puzzle, making it a contest of skill, in order to overcome requirements that would classify sweepstakes as a form of gambling.
As an example relating to sweepstakes promotions within the United States, Tennessee residents are prohibited by a policy of the Tennessee Alcoholic Beverage Commission (and not a state law) from entering sweepstakes sponsored by manufacturers of wine and liquor. Tennessee state law also prohibits sweepstakes agencies and sponsors from requiring prize winners to submit to "in perpetuity" publicity releases.
Most corporate sponsored sweepstakes promoted in the United States are usually limit entry to U.S. citizens, although many allow entry by legal residents of both the United States and Canada.
Among the commonly known sweepstakes in the United States are the American Family Publishers Sweepstakes (now defunct), Publisher's Clearing House and Reader's Digest Sweepstakes, each of which strongly persuade entrants to purchase magazine subscriptions by placing stickers on contest entry cardstock, while promising multi-million dollar (annuity) winners who will be "announced on TV". The American Family Publishers sweepstakes traditionally used paid advertisements during NBC's ''The Tonight Show'' to announce its grand prize winners (for many years, its celebrity spokesman was Ed McMahon).
Sweepstakes are also used by fast-food restaurants to boost business. One of the most popular has been the McDonald's Monopoly promotion (although the odds of winning the McDonald's Monopoly are usually much greater than the odds of winning many U.S. state lotteries). Soft drink companies also sponsor many sweepstakes, such as the Pepsi Billion Dollar Sweepstakes game and the Pepsi Stuff loyalty rewards program that allowed Pepsi drinkers to accumulate points from packages and cups and redeem them for high-quality, free merchandise. Pepsi Stuff was Pepsi's largest and most successful long-term promotion ever and it ran for many years in the US and in many countries around the world. Other sponsors may require the submission of a UPC of a company product (with provision for receiving a "free" UPC code) for entry into the sweepstakes drawing.
Sweepstakes must therefore be carefully planned to not only comply with local laws but curtail forms of entrant fraud and abuse. Before home computers were popular, a common method of entry was a mailed index card with the entrant's name and address. Massive computer-printed entries made a new requirement of "hand-printed". Laser printers able to mimic ink pen writing are also a problem for sponsors. In most sweepstakes, entrants and their relative must not be related to the sponsor or promoter.
Many state lotteries also run a second chance sweepstakes in conjunction with the retail sale of state lottery scratch cards in an effort to increase consumer demand for scratch cards and to help control the litter problems associated with the improper disposal of non-winning lottery tickets.^[2] As a lottery tickets are considered to be bearer instrument under the Uniform Commercial Code, these lottery scratch card promotions can be entered with non-winning tickets that are picked-up as litter.

Sweepstake in the U.K.

A 'sweepstake' is technically a lottery in which the prize is financed through the tickets sold. The popularity of the term ''sweepstakes'' may derive from the Irish Sweepstakes, which was very popular throughout the world from the 1930s to the 1980s.
There is also a tradition of office sweepstakes, which usually take place over large sporting events (Melbourne Cup, Grand National, World Cup etc), where you put in a stake into the pot, and get a horse/team drawn out of the hat. The winner then takes the pot.

General structure of winning a sweepstakes prize

Almost every sweepstakes in the United States offering prizes valued at $600 or greater will typically follow the following structure outlining the lifetime of a sweepstakes:

★ 'Sponsor Promotion'

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★ Advertising the sweepstakes, prize structure, and the official rules;

★
★ Opening date for receiving entries;

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★ Closing date for receiving entries;

★
★ Drawing date to judge winning entries.

★ 'Winner Notification'

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★ Sweepstakes promotion judges contacting prize winner;

★
★ Winner filing publicity release with sponsor's sweepstakes promotion agency;

★
★ Winner filing affidavit of eligibility (compliance with official rules) with sponsor's sweepstakes promotion agency;

★
★ Winner filling any required federal or state tax forms with sponsor's sweepstakes promotion agency;

★ 'Winner receiving prizes'.
It should be noted here that the sponsors of legitimate sweepstakes by law do not require the prize winners to pay any shipping or handing charges in order to win or receive their prizes.

Sweepstakes on the Internet

Entering sweepstakes by mail enjoys a declining popularity, and many more sweepers are choosing to enter online sweepstakes. Sweepstakes hobbyists who enter by mail are often called "Sweepstakers". Many sweepstakers meet locally in "clubs" and nationally at a yearly convention, which 800 people attended in 2006.The 18th National Sweepstakes Convention was held in June, 2007 in Dearborn, MI. Conventions are hosted by a local club in a different state each year.
It is much more convenient, more efficient, and less expensive to enter sweepstakes over the Internet as opposed to preparing and mailing sweepstakes entries by snail mail.

Cost

The direct costs associated with internet sweepstakes are mainly limited to the type of connection that you receive from your Internet Service Provider and for purchasing and maintaining your computer.
Most U.S. sweepstakes promotion agencies require that most snail mail entries have three components:

★ an entry form, most often a 3" x 5" piece of paper or index card handprinted with NAZTE (name, address, zip code, telephone number, and email address)

★ an envelope, most often a 4 1/8" x 9 1/2" No. 10 business envelope, and;

★ first class U.S. postage stamp.
Many other U.S. sweepstakes rules permit snail mail entry on the less expensive 4" x 6" U.S. postal cards.
It is reasonable to conclude that a traditional, first class snail mail entry costs the typical U.S. sweeper 50 cents (excluding time or travel) to submit each sweepstakes entry via the U.S. mail. Internet sweepstaking permits one to potentially enter hundreds of sweepstakes each day without the stationary and postage expense.

Efficiency

Internet sweeping allows sweepers to research and find online sweepstakes forms, to bookmark and organize sweepstakes URLs as a file within web browser software, and to use the web browser "form fill" tools to paste required personal contact information onto the online sweepstakes forms.
There are many online sweepstakes directories, some offering advanced features such as tracking which sweepstakes have been entered and possibly providing many different categorizations for the competitions listed.
There are also online services, which automatically enter members into sweepstakes. Members sign up once and are entered to various sweepstakes each month. This saves entrants time and effort; however, some sponsors of sweepstakes prohibit entries those kinds of automated sweepstakes entries since they want entrants to interact with the online presentation at the prize sponsors' websites.

See Also

★ History of United States Postal Service rates

★ Lottery in the United States

External links

★ U.S. Federal Trade Commission. Telemarketing and "Telephone Services: Prizes & Sweepstakes".

★ U.S. Federal Trade Commission. "News Spin On Sweepstakes Scams."