Social media contests have become a popular way for businesses to engage with existing customers, drive up new user participation, increase brand visibility and to foster new sales through marketing data and analysis. However, running a successful campaign requires knowledge of, and compliance with, the social media platform rules and regulations and then using these in the drafting of your own contest terms and conditions to ensure your business remains legally compliant.
‘With the array of social media platforms available to businesses, running contests and promotional campaigns is often seen as a form of ‘free’ marketing,’ explains Lauren Hocking, a Trainee Solicitor in the corporate and commercial team at Nalders in Truro.
‘However, as with any competition, the rules must be clear and transparent to participants, and social media is no exception. It might seem overkill for a giveaway type campaign but having contest terms and conditions in place, ready for your followers and participants to refer back to, is important. This shows your business is on top of its obligations and is using social media platforms responsibly and legally for its business marketing which can only be a win-win for everyone.’
Key considerations
Social media contest terms and conditions need to take account of each social media platform’s terms and conditions for running contests as well as other rules, regulations or codes of conduct stipulated by the Advertising Standards Agency.
It is not advisable to rely on a single template for every contest or campaign you run. Each platform may need different or slightly adjusted terms and conditions, and the nature of the contest itself will determine the details that go into the terms and conditions on a more tailored level. Reusing the same template each time can leave important information or legal protections out, increasing your exposure to unnecessary risk.
Types of contest
To ensure your terms and conditions truly reflect your intentions and protect your business, it is essential to understand the specific nuances of each contest you plan to promote.
For example, a simple giveaway of your product may seem straightforward on the face of it because it does not require anyone to purchase your product. Maybe you just want followers to like and share your post for a chance to win or to sign up to your newsletter. However, consideration will need to be given to:
- whether you need consent to gather email addresses;
- whether there is a requirement for anyone sharing to have a public account in order for you to track if they have shared; or
- if your product needs any caveats expressly stipulated to the potential winner. For example, if it is a food product and contains nuts, this will need to be made very clear. Age restrictions would need to be considered too, depending on your product and its suitability for younger users.
Another more complex example would be a contest where purchase is required by the participants. Would any purchase be deemed eligible for consideration for the purposes of forming a contract between your business and each participant? Does extra consideration need to be given to purchases that are discounted or even purchases of second-hand products?
In addition, further questions will need addressing, such as:
- how would proof of purchase be shown?
- how can you make it clear that purchasing does not guarantee winning the contest?
- can a person make multiple purchases to enter the contest?
As marketing teams become more creative with consumer engagement campaigns, the legal terms and conditions need to be adapted and updated in order to best protect your business.
Benefits and risks
While there is currently no legal requirement to have terms and conditions accompany each social media contest campaign you promote, it is clear that good practice would warrant having the terms in place. Some pertinent benefits include:
- Terms and conditions will give transparency about the rules of the contest.
- You would be reducing the risk of participants complaining they have been induced into entry without fully understanding the risks to them.
- The more detail you can lay out in the terms and conditions, the more compliant you will be with the use of social media platforms for your business marketing.
- Having terms and conditions in place, even when you are not obliged to, shows credibility and how seriously you take running social media campaigns responsibly.
On the other hand, choosing not to have terms and conditions in place (or just writing the rules of the contest in a few lines in one post) could expose you to risks that might be more costly than putting the terms in place at the start. Examples include:
- Reputational risk: if your rules are not clear and participants enter without fully understanding the rules, this could impact your business reputation with your online followers.
- Social media platform suspension: if a participant reports you for misleading or not being clear in how you run a contest, you could potentially face a ban or suspension from the social media platform, impacting your ability to market.
- If you overlook key details in your post such as allergy risks or residency requirements, you could face backlash from participants and, in more serious cases, a complaint to Trading Standards or a similar agency.
Key features of contest terms and conditions
Here is a checklist of some of the key features to consider when drawing up your terms and conditions:
- Eligibility: are there age restrictions or territory restrictions?
- Entry requirements: what steps have to be taken in order to participate in the contest?
- Entry and end dates: when exactly does the contest go live and end? In which time zone?
- Purchase requirements: what are these? Where and how should purchases be made?
- Prizes: is there a clear description of the prizes?
- Winner selection: how will the winner be selected? Is there a judging process required? Is it random; if so, what random generator will be used? How many winners will there be? How will the winners be notified and provided with their prizes?
- Odds of winning: should participants be made aware of their chances of winning or are your terms clear that there are no guarantees?
- Promoter details: is it clear who you are, and how you can be contacted for any contest enquiries? Make clear details of any other collaborator businesses you may be partnering with.
- Disclaimers or disclosures: what is required to manage risk? For example, is your decision final? Will the winner’s identity or social media handle be revealed and shared? Are all data protection laws with respect to the same being adhered to?
In addition, the drafting will need to be tailored to the specific features of the contest, and the regulatory framework for your business to ensure the terms and conditions are as thorough and robust as possible.
How we can help
Our team of commercial solicitors can work with you to produce appropriate terms and conditions bespoke to each contest type and social media platform used.
For further information, please contact Lauren Hocking in the corporate and commercial team on 01872 241414 or email lhocking@nalders.co.uk. Nalders LLP has offices in Truro, St Austell, Falmouth, Newquay, Camborne, Helston and Penzance. .
This article is for general information only and does not constitute legal or professional advice. Please note that the law may have changed since this article was published.