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Contests - are there potential legal problems?

         

jfodale

4:08 pm on Apr 3, 2006 (gmt 0)

10+ Year Member



I wasn't really sure what topic to put this post under, so Webmaster General it is.

Recently I've thought about holding weekly contests on one of my new sites. The reward would be cash, but not a whole lot (at least not at first). Probably about $25 each week or something.

The contest would be geared to have the contestents basically create me some content. A sort of weird "pay for content" type of scheme while building up a community I guess you could say. Contest topics would be "write the best article about topic X" or "photoshop me up something cool about topic Y" or "write me a poll question to put on the front page about topic Z". That type of stuff.

If I went through with it, I would also probably advertise the contest on relevant high traffic message boards to boost traffic to my site. In the end, I think this could be a great way to kickstart a site for very little cost.

The cost of running the contests would easilly be remade via AdSense or other advertising in no time I'm sure, and as traffic goes up, I could afford more valuable prizes.


So, a few questions for you to answer:

Has anyone ever run contests on their sites for members? If so, good experience/bad experience?

Are there any potential legal problems I need to worry about?

Can I even legally run a contest with cash rewards? It just seems like I need a license or something to do so, but I know that also sounds absurd.

Demaestro

4:39 pm on Apr 3, 2006 (gmt 0)

WebmasterWorld Senior Member 10+ Year Member Top Contributors Of The Month



[quote]Can I even legally run a contest with cash rewards? It just seems like I need a license or something to do so, but I know that also sounds absurd. [\quote]

I would think that it varies depending on where you are. Or maybe even where your contestants are. I would see what an hour at a lawyers would be and make an appointment.

Legal questions are tough to answer as the answers change depending on where you are.

FourDegreez

5:06 pm on Apr 4, 2006 (gmt 0)

WebmasterWorld Senior Member 10+ Year Member



Dunno about the legal issues, but I've run some contests before and given Amazon.com gift certificates as prizes (no need to divulge street addresses, etc).

jfodale

6:27 pm on Apr 5, 2006 (gmt 0)

10+ Year Member



Thanks for the responses - I may talk to a lawyer if its not too much money.

Any others run contests before?