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
Looking for more legal know-how to protect and empower your business? Join The Driveway, our monthly legal membership program. Check it out here!
