- The law
- FTC Act, section 5 (15 U.S.C. 45); CAN-SPAM Act (15 U.S.C. 7704(a)(2), subject lines); state laws, for example New York General Business Law 369-e and Florida Statutes 849.094
- Who enforces it
- Federal Trade Commission (FTC); state attorneys general and state agencies, such as the New York Secretary of State and the Florida Department of Agriculture and Consumer Services
- Penalties
- FTC and state court orders, refunds and civil penalties; failing to register in New York is a class B misdemeanor. In Florida, breaking the game promotion law is a second-degree misdemeanour, with civil penalties of up to $1,000 a violation.
What it means for your email
- The FTC says sweepstakes-type promotions that require a purchase are illegal in the US. With a prize, chance and a required payment, it's a lottery.
- Make entry free, and make the free way to enter as clear as any paid route. Don't word or design the email so people think buying will help them win.
- Each state has its own rules, which may require disclosures, a licence or a bond. The FTC advises checking with the attorney general in each state where you advertise.
- The email should give the key rules (who can enter, how to enter for free, the closing date, the prizes) and link to the full official rules.
- A subject line that would mislead a reasonable reader about what the email is, such as "You've won" when they haven't, breaks CAN-SPAM.
Do
- Say "No purchase necessary" and show the free entry method near the call to action.
- Link to official rules covering eligibility, dates, prizes and their value, the odds, and how winners are picked and told.
- Check the rules of every state you send to before launch, especially for big prize pools.
- Give free entries the same chance of winning as any others.
Don't
- Don't require a purchase, or a payment to claim a prize.
- Don't suggest that buying improves the odds.
- Don't tell someone they've won, or are a winner, when they haven't.
- Don't hide the free entry route in small print or behind extra steps.
Good to know
- New York: games of chance run as promotions with prizes worth more than $5,000 in total must be registered with the Secretary of State at least 30 days before they start, with a bond or trust account for the prize value.
- Florida: game promotions with prizes worth more than $5,000 in total must be filed at least 7 days before they start, with a trust account or surety bond, and the rules (or their material terms plus where to read them) must appear in advertising.
- Other states have their own rules, and some require registration. Check each one.
- Skill contests are treated differently from sweepstakes, but state rules on paid skill contests vary.
Sources
- Advertising FAQ's: A Guide for Small Business (Federal Trade Commission)
- Complying with the Telemarketing Sales Rule (Federal Trade Commission): these disclosures are required for phone promotions, and are good practice in email too
- 15 U.S. Code § 7704 (Legal Information Institute, Cornell Law School)
- New York General Business Law, Section 369-E (New York State Senate)
- Florida Statutes, 849.094 Game promotion in connection with sale of consumer products or services (Florida Senate)
Researched by Mailfois · 2026/27 edition · checked 20 October 2026
Not legal advice. This is a plain-English summary. Check the sources for anything specific, or take professional advice. Spotted something out of date? Email [email protected] and we'll credit you if you'd like.