You Might Be a Winner
        A blog from the attorneys of Verrill

        Sweepstakes Rules: How Much Is Too Much?

        by Robert Laplaca on August 24, 2017

        William J. Shakespeare recognized over more than 400 years ago in As You Like It that, “Excess may do you harm.” This may still hold true today for sweepstakes and contest Official Rules.

        The internet has allowed Official Rules to be as long as a lawyer’s imagination. But don’t shoot yourself in the foot when you try to bulletproof your rules. Boilerplate language, “take it or leave” contracts and heavy-handed, one-sided provisions could be unconscionable and unenforceable. According to the New York Court of Appeals, “unconscionability … requires some showing of ‘an absence of meaningful choice on the part of one of the parties together with contract terms which are unreasonably favorable to the other party.'” State v. Avco Fin. Servs. of N.Y., 50 N.Y.2d 383 (1980). Sounds like Official Rules.

        Context is important. Contests with high-value prizes such as trips, cars, houses and large sums of money may warrant extended Official Rules, but consider whether long-winded rules are really needed when the prize is 10 packs of gum?

        Clauses that should be given an extra look may include:

        • Waiver of Personal Rights. Like Greta Garbo, entrants may want to be left alone. Compelling an entrant to allow her personal information, photograph, etc. to be publicized may go too far in a simple sweepstakes and may even be a form of illegal consideration.
        • Sure, we all believe that arbitration will provide a quick resolution and may even shy entrants away from suing. But people who feel bulldozed by a lopsided arbitration clause may take it up with the courts. And even though courts favor arbitration, your arbitration clause could get thrown out because of the “large arbitration costs,” Green Tree Fin. Corp. v. Randolph, 531 U.S. 79 (2002), or because of the significant distance a party may have to travel, Van Den Bogaerde v. Staub, 435 N.Y.S.2d 736 (1st Dep’t 1981), or because the arbitration clause could not easily be found. Marek v. Alexander Laufer & Son, 683 N.Y.S.2d 50 (1st Dep’t 1999).
        • Limitation on Damages. Of course, you’re willing to let them recover their out-of-pocket costs or obtain a new game piece, but having a provision which unreasonably favors one party could turn your rules into a contract of adhesion. Mannion v. Manor Care Inc., 2006 WL 6012873 (Pa. Com. Pl. Sept. 26, 2006).
        • Release/Indemnification. Release clauses are good, but they can’t be “too complicated or subtle for an ordinary layman to understand.” Wheeler v. St. Joseph Hosp., 63 Cal. App.3d 345 (1976).

        Practice Tips

        • Use “You” instead of “Entrant” – it makes it more personable.
        • Cut down on defined terms. The degree to which people feel the need to define every obvious term reminds me of when Chico and Groucho were going over a contract which read, “The party of the first part shall hereinafter be referred to as ‘the party of the first part.'” As a lawyer, I know that trying to read a contract with multiple defined terms usually means having to page back to the “definitions” section many times. Imagine what those not admitted to the bar think while cursing every lawyer who had a hand in drafting the rules.
        • Make arbitration and release language easy to find and easy to understand. You don’t get extra points by finding 20 ways to say the word “claim.”
        • Use bullet points, charts or other methods to highlight complicated matters, such as an entry/winner selection schedule and submission requirements.
        • Use bold or caps to highlight really important provisions.
        • If there are multiple steps, number them.
        • Make it easy for entrants to find the rules. You have to make sure the rules are readily presentable in order to form a binding contract with the entrant. Multiple clicks to get to the rules is frustrating; putting a link to the rules after the click to enter is a real no-no.

        When drafting Official Rules, remember the words of Nietzche (the philosopher not the linebacker): “It is my ambition to say in ten sentences what others say in a whole book.” (A perfect way to end a 700-word blog post on brevity!)

        You Might Be a Winner

        Promotion and sweepstakes laws vary widely across the fifty states and under federal regulations, creating complex challenges for today’s innovative marketers. This blog explores the latest updates and trends in promotion and marketing law, offering practical insights to help brands stay compliant while pushing creative boundaries. We’ll also discuss noteworthy, questionable, and groundbreaking promotional campaigns to encourage thoughtful discussion among marketing and legal professionals.

        Key Contacts

        Subscribe

        Looking for more great content? Subscribe for regular legal updates and information delivered right to your inbox.

        Firm Highlights

        Blog

        What is a Bonus for Purposes of ERISA?

        An ongoing dispute about a Department of Labor advisory opinion published last September raises a basic but unanswered question under the ERISA: What...
        Media Mentions

        Verrill Recognized by WMTW for Partnership Supporting Hunger Relief in Maine

        Verrill was recently featured in coverage by WMTW News 8 for its role in a collaborative effort to combat food insecurity across southern...
        Press Releases

        33 Verrill Attorneys, Across Four Offices, Recognized in the 2026 Chambers USA Guide

        BOSTON, Massachusetts, PORTLAND, Maine, WESTPORT, Connecticut, and WASHINGTON, D.C. – Verrill has been recognized as a Leading Firm in 14...
        Blog

        Will the Knicks Beat the Spurs? (Are Prediction Market Event Contracts Gambling?)

        For those of you who like to keep score, currently 18 states are engaged in litigation over prediction markets, such as Kalshi and Polymarket,...
        Alerts and Newsletters

        DOJ Announces Faster Review and Enhanced Enforcement for Benefits-Fraud FCA Matters

        On May 27, 2026, the U.S. Department of Justice (DOJ) Civil Division issued a new memorandum, “Accelerating Review and Enhancing Enforcement in...
        Alerts and Newsletters

        DOJ Announces Minnesota Health Care Fraud Takedown; Signals Intensified Medicaid Enforcement Nationwide

        On May 21, the Department of Justice (“DOJ”) announced a first-of-its kind Minnesota Health Care Fraud Takedown charging 15 defendants, including...
        Media Mentions

        Lauren Galvin Quoted in Massachusetts Lawyers Weekly on Arbitration and Anti-SLAPP Protections

        Verrill Partner Lauren Galvin was recently featured in a Massachusetts Lawyers Weekly article highlighting a notable Superior Court decision...
        Blog

        Section 530A Accounts: What Employers Should Consider Before Offering Contributions to “Trump” Accounts

        Section 530A accounts, commonly referred to as Trump accounts, have attracted attention since the enactment of the One Big Beautiful Bill Act in...
        Blog

        Navigating PBM Reform: Regulatory Changes, Market Shifts, and Practical Guidance for ERISA Fiduciaries

        Pharmacy Benefit Manager (“PBM”) arrangements have long relied on rebates with limited transparency into true drug costs. Recent regulatory and...
        Blog

        DOL’s Proposed Regulation on Selecting Alternative Investments: Broad Implications for 401(k) and 403(b) Plan Fiduciaries

        On March 30, 2026, the Department of Labor issued a proposed regulation purporting to implement an executive order to expand access to “alternative...
        Press Releases

        Verrill Welcomes Private Clients & Fiduciary Services Attorney Gracie Castle

        BOSTON, Massachusetts – Verrill is pleased to welcome Gracie Castle to the firm’s Private Clients & Fiduciary Services Group as an Associate,...
        Published Works

        Francesco De Vito Authors Article in the Journal of the American College of Mortgage Attorneys

        Verrill Partner Frank De Vito authored an article featured in the Spring 2026 issue of The Abstract, the journal of the American College of Mortgage...