Private lotteries are illegal in many locations; running them on your Instagram account is not worth the risk. So, for your future promotion, you really only have two options: a sweepstakes or a contest. Before you start creating your contest, Instagram wants you to keep a few things in mind. First, follow the rules. If you want to include your followers in your prize pool, be sure to include all the necessary details about how to enter. For example, if you're giving away free tickets to a concert, tell people where to go to find out more about the competition. This way, no one is cheated out of winning.
Second, be careful what you post. If you give away too much information, then people will be scared off before they even have a chance to enter your contest. For example, if you mention an address and email address, this means that anyone who visits this address will receive an email containing more information on how to enter the contest. This is not only annoying for those people but also puts off potential entrants who might want to take part in something private.
Finally, be clear about the rules. If someone enters your contest without reading the details, this could cause problems later when you try to reach out to them with their win. For example, if you state in your contest rules that participants must be over 18 to enter, but someone wins who is not, then this person may feel uncomfortable receiving their prize.
Instagram recommends all of its users to run competitions or giveaways lawfully, so be sure to study up on your federal, state, and local regulations. Furthermore, if you have a giveaway or contest, you must include the rules and eligibility requirements in writing. If you fail to do so, then people will not be able to enter your competition, and this could result in legal issues for you.
In addition to these precautions, we are told by our legal team that it is very difficult to get sued for copyright infringement for giving away items such as books or movies. The reason for this is because people have an expectation of receiving products when entering a giveaway or contest. If a product is already available for sale or use without restriction, then people should not be surprised if they receive it.
For example, if you give away 10 copies of a book published by ABC Book Company, but only 5 copies are actually available, then there would be no issue with giving them out since everyone expected to receive one copy. However, if all 10 copies were actually available, then people might feel like they are being cheated out of their chance of winning. This is just one example of many reasons why it is important to follow legal guidelines when running a giveaway/contest.
Are Instagram freebies legal? Yes, is the quick response. The lengthy answer is that your Instagram contest will be totally legal provided you follow the criteria below, apply common sense for anybody running an internet company, and are fair and clear with all of your followers!
The short answer is yes, giving away free stuff is not illegal.
The longer answer is that running a giveaway on Instagram is not illegal per se, but what you give away must be your own property or that of someone with whom you have a written agreement permitting you to use their name as long as it isn't for profit. So for example, if I create some artwork and give it away for free on my Instagram account that would be legal because anything that is mine to begin with is legally mine to give away. However, if I post a picture of something that belongs to my friend and tell people they can win it by following me on Instagram then that would be copyright infringement.
Free stuff that has economic value like coupons, prizes, and products sold through the IG platform would be legal to give away as long as you aren't making a profit. For example, if I give away 10 free movie tickets and one person says they will pay $10 for them then that would be acceptable since we're not making any money off the transaction.
Following the selection of your winner, Instagram Sweepstakes will create a winner's list as well as a certificate of authenticity to demonstrate that the contest winner was genuinely picked at random. Your first giveaway using the Instagram Sweepstakes app is free, allowing you to test the service without risk. Subsequent giveaways are optional and cost $5 each.
You may notice a lot of individuals conducting lotteries on social media sites such as Facebook, but that does not guarantee they are legitimate, and you should be careful not to breach the law by running an illegal lottery. It is very important that you do not charge people for tickets or offer prizes in excess of $15,000 as this is classed as gambling and is therefore illegal.
Legitimate lotteries must follow certain regulations which include limiting entries to residents of the country or territory where the prize will be awarded, and disclosing all major rules regarding how winners are chosen. You cannot hold a legal lottery if you are not registered with the government agency responsible for regulating gaming activities (wherever you are based), so check with your local authority before launching a campaign on social media.
It is an offense under Canadian law to conduct an illegal lottery. Punishable by up to five years in prison, forfeiture of profits, and a fine of up to $500,000. Criminal copyright violations can result in even more severe penalties including imprisonment for up to 10 years and a fine.
Illegal lotteries are usually operated out of necessity because traditional methods of drawing lots (such as throwing dice) are unreliable and vulnerable to cheating. Some popular forms of illegal lotteries include pick-a-number games, slot machine parlors, and sweepstakes.