Recognize the difference between legitimate sweepstakes and other types of offers, such as prize promotions, and illegitimate promotions that misrepresent themselves and seek to defraud.

Direct mail sweepstakes promotions offer consumers the chance to win money and prizes in return for opening an envelope and returning the entry form. As more companies use sweepstakes to draw attention to their products and services, and as participation increases, growing numbers of individuals are winning prizes, many in quite substantial amounts.

You should know that legitimate companies that offer sweepstakes promotions want your experience with their offers to be enjoyable — and they want you to respond. They also want you to understand that you have an equal chance of winning, whether or not you order the offered merchandise.

The Direct Marketing Association, the U.S. Postal Inspection Service, and Call for Action, Inc. have prepared this booklet for you to use as a guide when responding to sweepstakes offers and for recognizing the difference between legitimate sweepstakes and other types of offers, such as prize promotions, and illegitimate promotions that misrepresent themselves and seek to defraud.

Download A Consumer’s Guide to Sweepstakes and Lotteries

PDF format, 346KB.

What is a Sweepstakes?
By definition, a sweepstakes is an advertising or promotional device by which items of value (prizes) are awarded to participating consumers by chance, with no purchase or entry fee required to win.

What is a Lottery?
Unlike a sweepstakes, a lottery is a promotional device by which items of value (prizes) are awarded to members of the public by chance, but which requires some form of payment to participate. Lotteries are illegal, except when conducted by states and certain exempt charitable organizations. If you believe you have received a solicitation in the guise of a sweepstakes which is an illegal lottery, you should contact your local Post Office™ or state Attorney General’s consumer protection office.

More About Sweepstakes
Consumers often ask how companies can afford such substantial prizes. Sweepstakes are so successful in generating attention to their offers that substantial revenues are gained for the companies that sponsor them.

Thousands of corporations give out millions of dollars yearly to lucky consumers. Your chances of winning will vary with the number of people who participate in a particular sweepstakes and the number of prizes offered. You should realize, of course, that the chance of winning a large prize is generally quite small. In most cases, you can enter as often as you receive sweepstakes entries, and some companies will accept write-in entries on a postcard. Check the official rules. But, remember, there is no chance to win unless you enter!

Advertised prizes should be awarded unless otherwise stated in the rules. Check the official rules to see if all prizes are guaranteed to be awarded. Most sponsors will provide a list of all prize winners if you are interested in receiving this information.

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