Conduct sweepstakes and giveways on Instagram, TikTok and YouTube in a legally secure manner

Giveaways bring reach, but also cease-and-desist letter risks. With clean conditions of participation, data protection notices and correct labeling, you avoid trouble.

  • Conditions of Participation and Privacy Notice
  • Labeling and Platform Rules
  • Demarcation from gambling
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Katharina Gitmann-Kopilevich
Your contact personKatharina Gitmann-KopilevichLawyer Specialist for intellectual property law

Sweepstakes are advertising

A giveaway is usually a business act, regardless of whether the prices are set by a trademark or by the creator itself. Competition law with transparency obligations under conditions of participation, data protection law, the rules of the platforms and possibly the right to gambling apply.

Common mistakes are the lack of conditions of participation, unclear age limits, mandatory markings from friends without their knowledge and a lack of labeling at sponsored prices. We create templates for recurring sweepstakes and examine large campaigns individually.

Typical situations in which we help

  • You are planning a giveaway with a sponsored price.
  • A brand wants to handle a competition through its channel.
  • You want to use participant data for a newsletter.
  • One participant complains about the draw.
  • You have received a cease-and-desist letter for a competition.

Legal basis at a glance

Conditions of Participation

Participants must be clearly informed of the organizer, participation period, prices, participation requirements, draw and notification. The conditions should be easily accessible.

Privacy

The necessary data may be processed for the implementation. Further use, for example for advertising, requires separate consent. A transfer to the brand must be transparent.

Gambling and Pairing

If participation requires a stake, such as a purchase, unauthorized gambling may exist or impermissible coupling. Free participation is the safe way.

Platform Rules

Instagram, TikTok and YouTube have their own specifications. For example, participants must recognize that the platform is not the organizer.

Business cards of the law firm Horak Attorneys
“A good giveaway has two winners: the participant and the creator without cease-and-desist letter.”

Practical examples: typical scenarios

We regularly meet the following scenarios in the consultation. They are anonymized and simplified and show how such cases are typically classified. They do not describe any specific mandates and do not promise a specific result.

Case 1

Giveaway without conditions of participation

Situation: A creator is giving away cosmetics from a brand and only writes: like, follow, mark.

Legal assessment: Missing conditions and missing marking are eligible for cease-and-desist letter.

Our approach: We negotiate the cease-and-desist letter and create a template for future competitions.

Case 2

Participation only with purchase

Situation: A creator is giving away a car among all buyers of his merch.

Legal assessment: Depending on the design, there may be an unauthorized gamble.

Our approach: We design a free option and adapt the conditions.

Case 3

Data for the brand

Situation: A brand requires the contact details of all participants.

Legal assessment: The disclosure requires a legal basis, regularly consent.

Our approach: We formulate consent and agreement with the brand.

That’s how we go

  1. 1

    Initial assessment

    You briefly describe the facts to us and send documents such as a contract, cease-and-desist letter or screenshots. We will tell you promptly where you stand and what the next steps will cost.

  2. 2

    Secure evidence and deadlines

    We document posts, stories and chat history in court and record all deadlines. Content disappears quickly, especially with social media.

  3. 3

    Set strategy

    Together we decide whether negotiation, defense, cease-and-desist letter or contract drafting is the right way. It is always about your reach and your business relationships.

  4. 4

    Implement and enforce

    We negotiate, formulate, answer and, if necessary, go to court, also in an urgent procedure. You will regularly be informed of what is happening.

Regarding the costs: Before every step we tell you what it costs. Depending on the case, we charge a flat-rate fee or by hourly rate according to the Lawyers’ Remuneration Act (RVG). If the opponent is obliged to reimburse, for example in the case of a justified cease-and-desist letter, we will claim these costs for you. More on this on our page Fee.

Common mistakes to avoid

  • Do not publish conditions of participation.
  • Not mark sponsored prices.
  • Join a purchase.
  • Continue to use participant data without consent.

Frequently asked questions about sweepstakes

Do I need conditions of participation?

Yes, they are required under competition law and according to platform rules.

May I request markings as a prerequisite for participation?

The platforms partially limit this. In addition, labeled ones should not be molested undesirably.

Do I have to pay taxes on profits?

As a creator, non-cash prizes that you receive from brands can be operating income. For participants, profits are usually tax-free.

Do you need an assessment quickly?

Tell us your request. We’ll get back to you in advance and tell you in advance what costs you have to expect.

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