There are many federal, state and local laws and regulations governing sweepstakes and contests, two very popular promotional techniques.
Prize is always present in such promotions.
In a contest, it is permissible to require a purchase in order to enter except in certain states. With respect to sweepstakes, the laws and interpretations among the different states as to what constitutes consideration are highly uncertain and frequently changed. All sweepstakes and contests should be accompanied by official rules which are clear and unambiguous. Disclosures required in advertising a sweepstakes or contest will vary depending on the nature of the promotion and the state in which it is running. Special care should be taken that advertising of the promotion is consistent with the rules.