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Fake a competition

Discussion in 'Making Money' started by dklimov, May 11, 2010.

  1. dklimov

    dklimov Newbie

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    Hi there,

    I was not sure which forum is the right one for my question.

    I'm thinking of creating a competition to get leads. I will say something along the lines of "win one of five free ipods if you fill out this survey".
    Except I'm not going to actually make anyone a winner or send any Ipods. I'll just say in the end "the competition is over, congrats to the five winners!"
    Is there any way someone could find out that I don't have the promised prizes?


    Thanks in advance
     
  2. pasdoy

    pasdoy Power Member

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    you seem pretty new to to this.
    1. Free iphone/ipod doesnt work those days, get another product out of the box.
    2. Never say the contest is over, only restrain winers to a specific contry (haiti)
    3. What you are doing is a verrrrrrrrrrrrry old thing (CPA). People know its fake, twist it. Youre better to offer a product that cost you 1$ and use a survey that gives you 3$. There is also a part about promotion, this is a very big investment if you want a good spot, but you can make a lot of $.

    What you shouldnt offer:
    Electronics
     
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  3. moremoney

    moremoney Junior Member

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    Hrmm not sure about the legality of this but it would certainly be frowned upon
     
  4. donnabrown

    donnabrown Newbie

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    i think FTC will be after u. be careful
     
  5. dklimov

    dklimov Newbie

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    Thanks for your responses.

    @Pasdoy: I am indeed quite new to this :) (not to CPA itself, but to a method like this)
    The Ipod was just an example.

    I was thinking about all kinds of twist. The only thing bothering me is if someone may actually prove that this is a fraud.

    @moremoney: It counts as fraud, so yeah... kinda frowned upon ;-)
     
  6. GreyWolf

    GreyWolf Executive VIP Jr. VIP

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    LOL, not sure about the legality?

    I'll help you out.
    It's Definately Illegal. :)

    If you have a contest, if your in the USA, UK, most of Europe, and many other places you need to be prepared to show records to prove not only that you actually provided a prize to some winners, but that the winners we're seleted legitimately.

    Having said that, they don't catch everyone. If you fly under the laws radar, you can get away with a lot. Unless there are a lot of complaints, no one is going to check you out.
     
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  7. 7878

    7878 Executive VIP Premium Member

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    I'm doing some work in this area myself, so I figured I'd chime in here with a couple of tips.

    Here's a short clip swiped from an about dot com article on the subject of sweepstakes law:

    In your example, the "consideration" would be requiring an action from the user for entry.

    The above is pretty basic but you get the general idea. The ins and outs of legally running a sweepstakes/contest are mind boggling. Most companies who specialize in promotions like this have legal counsel on standby. Keep in mind that every state and every country have different rules regarding these types of promotions.

    Take for example Rhode Island. Any prize with a cash value of over $500 requires you to pay $150 filing fee to the Secretary of State and submit a copy of the official rules.

    I'm not saying it can't be done, because it can. Just make sure to CYA if you're dealing with a large number of entries. :)
     
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  8. dklimov

    dklimov Newbie

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    Thanks for the great response.
    Since I'm from Germany, I'll have to check out the legal issues over here. I did find lots of sweepstakes on German Youtube though, which I'm sure were not official and did not seem to have had any legal consequences for the poster.
     
  9. GreyWolf

    GreyWolf Executive VIP Jr. VIP

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    You need to always keep this thought in mind when you evaluate anything. Just because a lot of other people are doing it doesn't mean it must be legal. Law enforcement has limited resources, so they can't prevent everything. Sometimes it takes a bit before authorities decide to intervene in public activities, but you never know when they'll decide the bucket is too full and start taking action.

    Like SPB7878 says, just be sure to do a little research, so you can CYA.
     
  10. dklimov

    dklimov Newbie

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    I'm always better safe than sorry :)
    It seems like it's not very strict from a legal point of view here in Germany. As long as the sweepstake does not cost the user anything, I don't have to submit any official notice or anything of that kind.
     
  11. bertbaby

    bertbaby Elite Member

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    SPB7878 is absolutely dead on regarding the state requirements and I remember excluding Rhode Island from my direct marketing days.