Legally Hosting a Giveaway with CliquePrize®

1. Avoiding Lottery Elements with CliquePrize®

   • No Purchase Necessary: CliquePrize® ensures compliance by enabling Sponsors (small business owners) to offer a free alternative method of entry (AMOE). For example, while Contestants can join via the app, you can customize your promotion to include a free mail-in option, avoiding the “consideration” element that defines an illegal lottery
   • Free AMOE Customization: The app supports various entry methods (aka AMOE) such as QR code scans or in-app One-Click to Enter registration, which is always free for Contestants. This flexibility ensures all entrants have an equal chance to win without spending money
   • Chance-Based Selection: CliquePrize® facilitates random winner selection for Giveaways, a key distinction from skill-based contests, ensuring compliance with chance-based giveaway laws. You can choose winners or the app can choose for you

   CliquePrize® Advantage: Unlike social media giveaways, where entry might involve a “like”, “follow” (sometimes debated as consideration) or share campaigns, CliquePrize® explicitly captures Contestant 1st party data through verified accounts, ensuring clarity and legality in entry methods.

2. Creating Clear and Transparent Rules with CliquePrize®

   • Official Rules Made Easy: CliquePrize® provides tools to create and display official rules within the app. Sponsors can customize these rules to include:
     • Eligibility: Require Contestants to be in the legal age group (e.g., 18+).
     • Entry Methods: One click to Enter (inside the app) or Text to Instant Win (outside the app) offer flexible modes of entry
     • Entry Period: Set specific start and end dates, adjustable to your campaign timeline
     • Prizes: Detail prizes (e.g., a $50 gift card or a physical item) with approximate retail value (ARV); All giveaways clearly indicate the ARV on the Browse Promotions and Prize Details screens
     • Fulfillment: Winners can redeem their prizes in person through QR codes or scan them in at home via a physical prize that is mailed through a major US carrier such as FedEx, UPS or the USPS
     • Notification: Winners will be contacted via email or SMS as well as through in-app Notifications
     • Contact Info: Your small business’s name and address are automatically included
     • No Purchase Necessary: A customizable disclaimer ensures this is prominent
     • Odds of Winning: The app provides transparent real-time entry numbers so the Contestant knows how many people entered prior to registration
     • Accessibility: Prize summary, Privacy Policy, Terms and Rules are provided within the app, making them easily accessible to Contestants, unlike social media posts where rules might be buried in comments or bio links; these assets can be customized or edited from CliquePrize®'s standard templates

   CliquePrize® Advantage: Social media giveaways often lack detailed rules or lead capture, targeting a broad, non-local audience. CliquePrize®’s geo-targeting by zip code ensures your giveaway reaches the right local prospects, enhancing relevance and compliance.

3. Compliance with State and Federal Laws Using CliquePrize®

   • Lottery Laws: CliquePrize® avoids lottery classification by never offering cash prizes, a must under U.S. law
   • Consent & Privacy Laws: Its CMP (Consent Management Platform) helps manage consent in line with data protection laws like the CCPA which applies to the mobile banner ads inside the app; promotions do not fall under this requirements because Contestants already provided permission to share their data as part of the Contestant User Terms during the sign up process
   • Sweepstakes Laws: The app supports prize values under $1,000 (avoiding public bonding requirements), but for prizes over $600, it reminds Sponsors to issue a 1099 form to winners, ensuring tax compliance
   • Social Media Integration: While CliquePrize® can leverage social media for awareness, it captures leads directly in-app, bypassing platform-specific pitfalls (e.g., Facebook’s ban on using personal timelines for entries)
   • Security: CliquePrize® prioritizes data security since it is hosted on the MS Azure Cloud; this protects Contestant information—a step beyond social media’s often lax security protocols
   • User-Generated Content: If you customize your giveaway to include content submissions (e.g., videos or photos), CliquePrize® ensures compliance by allowing you to specify copyright rules in the terms

   CliquePrize® Advantage: Social media giveaways don’t capture actionable lead data and often attract entrants outside your local market. CliquePrize®’s hyper-local focus, paired with robust legal tools, makes it a superior choice for small businesses aiming to grow their customer base.

CliquePrize® vs. Social Media Giveaways

• Lead Capture: Social media giveaways (e.g., “Like to win!”) doesn't collect detailed entrant data, limiting follow-up opportunities. CliquePrize® captures verified Marketing Qualified Leads (MQLs) with contact info, enabling direct nurturing via email or SMS through its partner, HelloLeads.io.
• Targeting: Social media casts a wide net, often reaching irrelevant, non-local audiences. CliquePrize® uses patent-pending technology that leverages Apple Location Services and Metro Market targeting to focus on prospects within a 30-mile radius—crucial for brick-and-mortar small businesses where 95% of sales come locally
• Customization: Social media offers limited control over giveaway structure. CliquePrize® lets you tailor promotions (sweepstakes, video contests, raffles, events, text to instant win promotions) and integrate features like Refer A Friend Rewards programs, all while staying compliant

Legal Requirements for Giveaways in the U.S.

To run a giveaway legally in the U.S., you must adhere to federal and state regulations. Here’s an overview:

• Federal Laws:
  • No Purchase Necessary: Required under the Illegal Lottery Act to avoid classification as a lottery (prize, chance, consideration)
  • Tax Reporting: Prizes valued at $600+ require a 1099 form issued to winners; for $5,000+, 25% tax withholding applies unless the sponsor covers it
  • FTC Guidelines: Endorsements (e.g., influencer promotions) must disclose material connections, and giveaways must use #sweepstakes or #contest hashtags if entrants post content
  • FCC Rules: If broadcasted (e.g., via radio), material terms must be disclosed periodically or online
• State-Specific Differences:
  • New York & Florida: Sweepstakes with prizes over $5,000 must be registered and bonded (NY: 30 days prior; FL: 7 days prior). CliquePrize® caps prizes at $1,000 to avoid this
  • Rhode Island: Registration required for retail sweepstakes over $500
  • Arizona: Contests requiring purchases must register with the Attorney General and certify no additional fees were added to the price
  • Colorado, Maryland, Nebraska, North Dakota, Vermont: Prohibit purchase requirements for skill-based contests
  • California: The CCPA mandates clear consent for collecting personal data, which CliquePrize®’s CMP addresses

Example CliquePrize® Giveaway

App Announcement:
“Enter our giveaway for a chance to win a $50 gift card to [Your Store]! Download CliquePrize®, enter via the app, or scan our QR code in-store. Ends [date]. No purchase necessary. Open to [zip code] residents 18+. See rules in-app.”

Official Rules (In-App):
Detailed terms covering eligibility, entry methods, prize value, random selection process, and compliance disclaimers, all customizable within CliquePrize®.

CliquePrize® transforms giveaways into a powerful, legal, and local lead-generation tool for small businesses. By addressing lottery risks, providing customizable rules, and ensuring compliance with U.S. laws, it outshines social media giveaways that lack targeting precision and data capture. For brick-and-mortar businesses, CliquePrize® offers a smarter, safer way to engage customers—consult a legal professional to fine-tune your campaign, and let CliquePrize® handle the rest!

🚀 Ready to take your marketing to the next level? Download the CliquePrize® app and create a FREE Sponsor Account today!

CliquePrize®*** is the iPhone Giveaways mobile app that helps Small Businesses grow by reaching, nurturing and converting local, high value prospects. If you have any questions or feedback, please let us know!***