Are there any restrictions on the use of “contests” or “sweepstakes” in advertising?
Yes, there are restrictions on the use of “contests” or “sweepstakes” in advertising in North Carolina. These restrictions are outlined in the North Carolina Deceptive and Unfair Trade Practices Act, and companies that offer contests or sweepstakes must adhere to them. Under North Carolina law, companies must fully disclose all rules, restrictions, and entry requirements for their contests or sweepstakes. This includes the criteria for judging entries, the odds of winning, and the exact prizes. Companies must also clearly explain to potential entrants how to enter the contest or sweepstakes. In addition, companies must not fix the outcome of any contests or sweepstakes. They may not provide any predetermined criteria that will determine who wins a prize. Finally, any winner must be given his or her prize within 30 days after the contest or sweepstakes ends. Therefore, North Carolina law puts restrictions on the use of “contests” or “sweepstakes” in advertising. Companies must fully disclose all rules, restrictions, and entry requirements, and must not fix the outcome of any contests or sweepstakes. Winners must also be given their prize within 30 days after the contest or sweepstakes ends.
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