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No purchase necessary?  What’s the social policy reasoning behind that?


Okay, this may seem like one of my wacky entries, but I'm actually serious here:

1) What's the compelling public policy behind prohibiting companies from requiring purchases as part of a sweepstakes? In other words, why must companies always offer a "No Purchase Necesary" method for entering contests, such a submitting a postcard with one's name and mailing address, yadda yadda.

2) Have you or someone you know actually entered contests in this way?

3) If so, have you or someone you know actually WON something in this context?
 

- Blathered by Adam on Monday, July 11, 2005 at 20:31 [ Permalink | Trackback ]
- Filed under Society
- Commented on by 6 folks so far. Scroll down and see for yourself (and join in the conversation!)


The “no purchase necessary” rules actually come from broadcast rules. So if the sweepstakes are advertised on the radio or on broadcast television (which most, if not all of that kind, are) then they cannot require a purchase to win. Weird, but true. It has to do with the whole “the airwaves belong to the people” deal that keeps the people at the FCC employed.

- Posted on Thursday, July 21, 2005 at 14:30 [ Permalink to this comment ]

It’s a direct result of the prohibition against gambling, which we see breaking down at this time in our history. If you have can buy “x” to enter a lottery, then it’s the same as buying a lottery ticket or putting money on a horse. If the company also provides a way to enter the lottery that is free, then it isn’t gambling because people who enter that way have nothing to lose. Now that legal gambling is seeping into so many areas, we may see a loosening of this prohibition, and you could gamble by buying pieces of gum, and have something more fun than a lottery ticket if you lose.

- Posted on Tuesday, August 16, 2005 at 13:27 [ Permalink to this comment ]

smile I specify contests that require no purchase to enter.  Maybe that could be another reason.  I’m hoping to win something some day so I enter contests every day that I can get to the library and use their computers.

- Posted on Thursday, November 9, 2006 at 8:21 [ Permalink to this comment ]

Here is the first test:
http://ten.staralliance.com/en/competition.php?

It is the most typical lottery (not a contest)- does not require any skills, but it requires purchase.

Any ideas?

- Posted on Friday, June 22, 2007 at 9:50 [ Permalink to this comment ]

I have entered a couple contest by the “no purchase necessary” method.  I have never won any contest or sweepstake, purchase or no purchase.  My understanding on how sweepstakes are created is that they’re actually insurance policies that rarely ever have to pay out.  Basically the company, say McDonalds, purchases a policy from a sweepstakes company.  The sweepstakes company makes its money from premiums of the sweepstakes that never pay out.  Since there is only one cup with the grand prize ticket, its very likely that someone will throw the cup away without checking, the cup never gets used, someone drops the cup....  the odds are so extreme to actually win

I found this on another site...perhaps it will shed some light on the subject.

In the United States, it’s a federal law that all sweepstakes provide the disclaimer that a purchase is not required to enter, nor will it increase their chances of winning. Over time the phrase “No purchase necessary” (along with its sibling, “Void where prohibited") has emerged as the most succinct way to make this disclaimer.

Usually it’s put in tiny print somewhere near the bottom of the junk mail advertisement, or read off as fast as possible by an announcer at the end of the radio commercial. A new law passed on the last day of the 1999 Congressional session requires sweepstakes promoters to place this disclaimer in a more visible location, following a rash of consumer complaints and lawsuits against supposedly deceptive promoters. (One such lawsuit against the well-known Publishers Clearing House has been so costly, they’ve been forced to file for bankruptcy protection.)

- Posted on Thursday, September 6, 2007 at 13:48 [ Permalink to this comment ]

I had trouble finding this information on the Internet!
Thank you for taking the time to post!

- Posted on Wednesday, April 30, 2008 at 0:41 [ Permalink to this comment ]

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