Running a giveaway or promotion is a great way to:
● Boost followers
● Generate leads
● Connect with your community
● Promote your product or course
But if you don’t follow the legal rules, you risk getting flagged, banned, or even sued.
Here’s how to launch a 100% legal giveaway or contest for your online business.
What Counts as a Giveaway or Promotion?
Any activity where people participate to win something in return:
● Free giveaway on social media
● Raffle among paying customers
● Product or service sweepstakes
● Creative or content-based contests
Even if it’s digital and feels casual, there are rules you must follow.
Risks of Not Following the Law
● Your account could get flagged or blocked
● Participants might complain if things aren’t transparent
● You could violate Instagram, Facebook, TikTok, or email platform rules
● You’re still subject to U.S. promo laws — even online!
Legal Essentials for Giveaways & Promotions
1. Clear Terms & Conditions:
Include who can enter, how to enter, start/end dates, prize details, how winners
are picked, and how they’ll be notified.
2. Social Media Disclaimer:
Example: “This giveaway is not sponsored, endorsed, or administered by
Instagram.”
3. Privacy Policy:
If you collect emails, tell participants how you’ll use their info.
4. Fair Winner Selection Method:
Use tools like Wheel of Names, Google Random Number, or Sortea2 to choose
winners transparently.
5. Documentation:
Keep screenshots of entries, winner selection, and announcement posts.
Running a Creative Contest?
You can choose winners based on merit instead of random draws, but you still need to
explain:
● How submissions will be judged
● Who the judges are or the evaluation criteria
● What rights participants give you over submitted content
Common Mistakes to Avoid
● Not publishing giveaway rules
● Not clarifying if shipping is international
● Not announcing winner dates
● Picking winners without clear proof
● Forgetting legal links in your post or form
One wrong line in your giveaway rules could get your post pulled or your account
banned.
Download the Legal Self-Audit and get plug-and-play terms + privacy tools to keep
your next contest fully compliant and conversion-ready.
Giveaways should grow your brand — not risk it. Get protected now.
