Direct mail contests can be a good way to advertise your company or products. It is important that these are planned carefully so that they follow all applicable laws. A simple oversight could have huge financial and legal consequences. Something as small as the wording of your offer or failing to put all required disclosures could accidentally put you and your business on the wrong side of the law.
Table of Contents
Direct Mail Contests Must Adhere to Many Different Laws
All direct mail contests must adhere to many different laws, depending on a number of various factors. Local, state, and federal government regulations and laws may all apply. This can lead to a confusing maze that is difficult to navigate, especially if you are new to this type of campaign and advertising method. Legal advice may be needed to ensure that you comply with all the laws that apply.
The Deceptive Mail Prevention and Enforcement Act of 1999
Almost all direct mail contests are covered by the Deceptive Mail Prevention and Enforcement Act of 1999. This is also called the Sweepstakes Law by many people. It outlines what marketers can and cannot do when it comes to contests. Violations of this law can lead to civil penalties by the postal service; including subpoenas, stop mail orders, and financial fines.
Some things your Contest Mailers Must Include
When you use direct mail contests, there are a number of things that your mailer must include. One rule is that all disclosures that are legally required must be on the mailer, and these must be clearly and conspicuously displayed. These disclosures must also be “readily noticeable, readable and understandable” to the target audience average member.
Know the Laws in Your State, and the Other States your Mailers will be Sent To
Make sure that you are aware of the state laws in every state that your mail will be sent to with your direct mail contests. If some recipients are in another state then you must comply with your state laws and the state laws where the recipient resides. New York and several other states have some of the strictest laws for some types of marketing and advertising.
Don’ts with Contest Mailers
Some of the important don’ts when it comes to direct mail contests include:
- Your mailer should not refer to any federal agency, federal program, the Postmaster, the Postmaster General, or any federal department in an attempt to make recipients believe that the mailing or offer is endorsed by this entity when it is not.
- You cannot use any seal of the federal government in order to deceive the recipient into thinking that your product or service has been endorsed by the agency when this is not true, or that the mailing is actually from the government agency that the seal used belongs to.
- Do not state or even hint that buying a product or service, or paying for a previous purchase, is necessary in order to enter and win the contest. This is not allowed.
- Never mislead the recipient into thinking that they have won a prize if this is not actually true. This is deceptive and is against the law.
- Don’t forget to make sure that all of the rules and details for the contest are published and available to those who receive the mailing or enter the contest.
- Never use any terms or phrases that could seem misleading or deceptive to the consumer who receives your mailer.
Honest Intent will not put you in Compliance with the Law
Many honest advertisers have found themselves on the wrong side of the law without ever meaning to do anything illegal. The patchwork of local, state, and federal laws makes it hard for many people to understand what is required and what is prohibited. When you know what the laws are in your area you can make sure that you do not unintentionally violate them.
When in Doubt Find Out What Laws Apply to your Mailers
If you plan on holding direct mail contests and you are not absolutely sure what laws apply to you then it is a good idea to seek out legal or professional advice. Some printing companies who handle direct mail on a large scale basis may understand many of the requirements. A business or marketing lawyer can also explain what your requirements are for this type of mailer.
Have you ever had legal problems with direct mail contests? What happened and how did you respond?
