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price draw

legal issues regarding a website contest

10:41 pm on Feb 21, 2006 (gmt 0)

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10+ Year Member

joined:Oct 16, 2002
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We are thinking of running a 'price draw' competition on our website in order to gather e-mail addresses for later e-mail marketing activities. We're thinking of giving away a couple of (5) widgets (priced about 50 dollar).

Some questions appear:

Can we random pick the 5 winners...?
Do the visitors have to answer a question...?
Any legal issues to take notice of...?

Any average responses (conversion rates) known...?
Any other contest ideas...?