There are hundreds of ways for car dealers to get ahead of the game, and one of those ways is running a sweepstakes. In this article, we discuss what a sweepstakes is and how to ensure it is legally executed.
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What is a Sweepstakes?
Dealers are always looking to get ahead of one another, and so some like to offer sweepstakes. A sweepstakes are promotional events where prizes can be won at no charge to the participant. For example: “Come take a test drive and you get a free $50 Amazon gift card!” “Spin the wheel and you might win $1,000 off your down payment!”
How to Ensure a Sweepstakes is Legally Executed
There are a lot of hoops to jump through when it comes to sweepstakes in Georgia, but the most important thing to note is that a dealer cannot require a purchase to enter. It must be completely free and non-binding. It’s critical that a dealer does not require a consumer to actually purchase anything in order to enter the sweepstakes. A truly legal sweepstakes in Georgia allows anybody to enter with or without a purchase.
If you require a purchase, then it is no longer a sweepstakes and cannot be advertised as one. Otherwise, you open your dealership up to legal risk and the consumer can bring a claim against you, so spare yourself the headache and run sweepstakes properly without requiring a purchase to enter.
How Lefkoff Can Help You
If you are looking for more support when it comes to sweepstakes, you can also book a strategy session with us here. We’ll personalize your counsel and guide you through everything to ensure your business is protected. You can also find more information at www.georgiacarlaw.com
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