Who doesn’t love the chance at some free swag? Even better, what company doesn’t enjoy seeing their logo being advertised by happy members in the community or social media posts?! Contests and giveaways are a great opportunity for your credit union to gain engagement and strategically grow measurable metrics (i.e. lending, following, engagement, membership, etc.). Though it seems simple enough to give things away… like always, being compliant does take some special steps. Each state, social media site and type of promotion come with their own regulations. Here are a few basics to get you started with your next promotion:
Contest is a skill and/or merit-based prize promotion – not a random selection, therefore using a judging or voting process/panel. An example of this could be an art contest in which entrants submit artwork according to subjects and rules to be judged by credit union members or credit union staff.
Sweepstake is random drawing by a general open entry.
Giveaway is pretty much another term for sweepstake but not as legally accepted. An example of a sweepstake and/or giveaway would be an “enter to win” a $50 gift card from a local vendor by liking/following/sharing or emailing in!
Once you understand the basics and what type of promotion your credit union would like to run, there are some simple steps to follow in order to set up a compliant giveaway:
Step One: Follow the basic laws of the prize promotion. To keep your promotions lawful, you cannot contain all 3 elements of gambling (AKA resemble a lottery): Prize, Chance, and Consideration.
Prize: An award of any kind that holds any value
Chance: Randomly selecting winners
Consideration: Monetary and Non-Monetary. This is seen as an “enter with money” or substantial amount of time – all of which directly benefits the sponsor and is not seen as ethical practice for sweepstakes.
Step Two: No matter the promotion or prize, the contest or sweepstake needs to have clearly stated, official rules. This keeps you from objections from contestants or entrants. These rules need to be conveyed with every post or mention of the prize promotion.
Basic rule examples from Kasasa.com
“No purchase necessary
Participation eligibility (ages, locations, employees)
Opening and closing dates
Name and contact information of the sponsor (you)
Number, description, value, and odds of winning prizes
Method of winner selection and date when a winner will be announced
How the winner will be notified and where a list of winners can be obtained
Alternative methods of entry
Acknowledge that the social media platform is not associated with the contest”
Step Three: Review federal legislation and consult compliance teams. (i.e. COPPA, CAN-SPAM, TCPA, FTC) Do not use misleading or deceptive advertising – always use clear statements with clearly stated rules of engagement and participation.
Step Four: When promoting any sweepstake or contest, carefully read through legal rules and limitations of each posting platform (especially social media). Many social media platforms have very clear-cut requirements for promotions such as sweepstakes and contests. If you are running promotional programs within public and private facilities, these areas may also have specific rules and regulations pertaining to advertisement and promotion (such as prize promotion).
Giveaways are a great technique for marketing your credit union and having fun with your credit union community. Great for growing social media engagement by posting on multiple platforms, even video platforms, and email blasts! Consider these steps as you build promotional efforts in the future. For help planning compliant prize promotions contact Oak Tree Marketing today! https://www.oaktreebiz.com/credit-union-marketing-services