FAQ

First, most people think a minor in the U.S. is anyone under 18, but that is only true in 47 states. These are the states that don’t consider 18 the age of an adult or having reached “the age of majority”: a minor is any person under the age of 19 in Alabama or Nebraska or any person under the age of 21 in Mississippi. Generally speaking, promotions open to minors have additional entry and prize restrictions to abide by applicable rules/laws. However, it’s important to know that promotions open to minors under the age of 13 also require verifiable parental consent in order to abide by the Children’s Online Privacy Protection Act (COPPA). Setting this element up is necessary; brands that violate COPPA may receive hefty fines up to $53,088 per violation. ESG can help you determine age-appropriate entry mechanics, appropriate prizing, and legal guardrails to prevent your brand from violating any laws.

Many brands forget to include “no purchase necessary” language, fail to follow FTC guidelines to use a sweepstakes specific hashtag, or ignore platform-specific rules (such as Meta or X) designed to prevent spammy behavior and abusive practices. ESG helps you avoid disqualifying violations that can get your account taken down and structures your sweepstakes to meet each platform’s guidelines. Brands also tend to forget they need to account for any constraints a social media platform has when it comes to notifying winners (not all platforms have direct messaging) and that they need to post the official rules online.

A surety bond is like a financial guarantee to make sure sweepstakes are fair and legitimate and only applies if your sweepstakes is open to residents of New York and/or Florida and the total value of all prizing is over $5,000. Its purpose is to protect entrants by ensuring that the prize will actually be awarded even if something goes wrong. Here’s how it works: If you fail to deliver the prize, the state can use the bond to make things right for the winner by awarding the prize and/or start legal proceedings. While the bond amount isn’t returned to the sponsor even when the sweepstakes runs smoothly, the Florida Department of Agriculture and Consumer Services (FDACS) may waive the surety bond requirement if the brand/sponsor has run promotions for at least 5 consecutive years without an incident and has no no civil, criminal, or administrative actions instituted against them by the state or an agency for violation of Florida Statute 849.094.

New York, Florida, and Rhode Island have consumer protection laws that mandate registration and bonding (NY & FL only) for higher-value prize promotions. These measures exist to protect residents from fraudulent or poorly managed sweepstakes, ensure prizes are awarded as promised, and maintain transparency and trust in promotional programs. Failing to register on time, or at all, can result in fines, legal exposure, or restrictions on running future promotions in those states. ESG handles these requirements on your behalf, ensuring timely filings, proper bonding, and full compliance.so your sweepstakes operates smoothly and your brand maintains credibility across all jurisdictions.

Compliance begins with clear, legally sound Official Rules. Depending on prize value and eligibility, your sweepstakes may also need to be registered and bonded in states such as New York and Florida. ESG’s team ensures your promotion meets all local, state, and federal requirements and follows industry best practices. With over 30 years of experience, ESG provides strategic guidance to tailor each promotion to your audience and objectives, ensuring measurable marketing impact while navigating complex legal and regulatory requirements.

Sweepstakes administration involves managing the legal, logistical, and operational aspects of a promotional giveaway. It ensures your sweepstakes is legally compliant, fairly executed, and properly documented. ESG handles everything that falls under the sweepstakes administration umbrella from creative consultation, official rules & disclaimer creation, microsite development, website review, social media deployment, certified random winner selection, winner verification, state filings and closings, tax issuance for winners, alternative methods of entry (AMOE), and prize fulfillment, reducing your liability and increasing campaign credibility.

Sweepstakes are chance-based promotions; contests are skill-based. Sweepstakes must have “no purchase necessary” methods of entry and the winner is determined via a random drawing, while contests typically require judging criteria and the winner is determined by a scoring system. ESG helps you select the right format based on your objectives and always steers you away from running an illegal lottery. And yes, we create and execute both contests and sweepstakes!

As part of our sweepstakes administration services, ESG conducts random drawings and contacts winners via the methods outlined in the Official Rules (email, phone, etc.). If winners don’t respond within a stated timeframe, alternates are selected per the rules and we ensure fair and auditable winner selections/tracking in case of an audit by a state regulatory agency or Attorney General. Notifying winners can be challenging, as many are cautious about potential scams; ESG’s decades of experience and well-established online track record which is easily searchable by concerned recipients, helps bridge this gap, providing winners with the confidence and peace of mind to claim their prize.

Winners must often sign affidavits of eligibility and liability/publicity releases. This ensures the winner is eligible to win a prize and agrees to the publicity and liability clauses in the official rules. ESG manages these verification steps, as well as IRS reporting for prizes over $600 (via 1099-MISC forms). We also handle shipping and delivery logistics for physical prizes, trips, and cash. We keep all promotion data for 3 years and all financial data for 7 years in case of an audit by a state or federal regulatory agency or an Attorney General.

Your official rules are the governing document for your sweepstakes and must clearly outline key details, including eligibility, entry period, how to enter, accurate prize descriptions including the total approximate retail value, odds of winning, tax implications, sponsor contact info, and the process for selecting winners and notifying them. A dedicated promotion manager will craft custom rules for each promotion to make sure they align with your campaign objectives and the requirements of applicable jurisdictions. Our goal is to strike the right balance between the formal language of legal documents and plain language to ensure the official rules are both compliant and also easy for consumers to read and understand.

B2B sweepstakes can be a powerful tool for strengthening relationships, generating leads, and increasing brand visibility within key industry segments. They are subject to different advertising and incentive laws and must also respect the company policies of each entrant. ESG helps you design business-facing promotions that comply with all trade regulations while delivering measurable value to your brand. Whether through opt-in incentives, QR codes, or custom microsites for in-person or hybrid events, we provide the expertise, compliance oversight, and turnkey administration needed to execute a flawless B2B campaign that drives engagement and supports your business objectives.

Some, but not all, non-English speaking countries require the Official Rules, entry pages, and winner communications be translated into the local language. The translations must be accurately translated and culturally appropriate. ESG provides translation services where required.

Different countries have vastly different contest and sweepstakes laws, making it impractical, and often impossible, to legally run a single promotion worldwide. Language, tax requirements, eligibility, registration/permits, and prize types and values must each be compliant with the laws of every participating country. The first step is identifying which countries are most critical to your brand’s growth; this allows ESG to create a realistic, efficient timeline from concept to launch that prioritizes key milestones, clear deliverables, and strict budget adherence. With extensive experience managing international promotions, ESG provides end-to-end global compliance, translation, and administration services, ensuring your campaign meets every legal requirement while maximizing its reach and impact across borders.

Offering a prize for completing a survey can significantly boost response rates, but it’s essential to do it right. ESG ensures your sweepstakes incentive is fully compliant with all applicable rules, laws, and regulations—from structuring a fair, chance-based entry process to adhering to privacy and consent requirements. Using our licensed, secure platform, ESG can seamlessly execute the promotion from start to finish, providing the tools and expertise needed to drive both participation and ongoing brand growth.

Tech gadgets, gift cards, cash, travel experiences, and exclusive access (VIP tickets, behind-the-scenes passes or meet-n-greets) consistently perform well. ESG can also tailor prizes to your audience’s preferences and brand positioning. Selecting the right prize is not just about popularity—it’s a strategic choice that directly supports your brand’s goals and objectives, driving both engagement and meaningful connections with your target audience.

Most successful promotions run between 2-6 weeks. Shorter timeframes create urgency, while longer ones support broader reach. ESG goes beyond simply setting a timeline—we analyze your audience, objectives, and marketing calendar to determine the optimal window for your sweepstakes or contest. Backed by years of experience managing promotions across industries, ESG will always help you maximize entries while also protecting your brand.

Budget and time to deploy are 2 factors you need to consider when deciding where people enter the promotion. Whether you’re using a custom microsite and have time to build and deploy it or you are launching your sweepstakes on a licensed platform or a social media platform like Instagram, TikTok, or X, ESG can build or review your entry flows, ensure data privacy compliance, and manage real-time submissions and judging panels. We always advise brands to create a clear call-to-action regardless of the platform being used, and to use a standard disclaimer which we draft to provide entrants with a quick snapshot of the promotion such as eligibility and end date.

Game shows and reality competitions on broadcast television and streaming platforms require strict compliance with FCC and FTC regulations. With over 30 years of hands-on experience in game show and reality-TV compliance, ESG’s Sullivan Compliance team understands the unique demands of live and taped productions, network standards, and upholding the producer’s vision. We work seamlessly with production, legal, and the network to ensure every element is executed flawlessly, protecting both the integrity of the show and the credibility of the brand.