Educational Consumer Tips

Sweepstakes - FTC Rule, Section 308.3

Author: Better Business Bureau

According to Federal Trade Commission Rule, Section 308.3, the provider of pay-per-call services that advertises a prize or award or a service or a product at no cost or for a reduced cost, to be awarded to the winner of any sweepstakes, including games of chance, shall clearly and conspicuously disclose in the advertisement the odds of being able to receive the prize, award service, or product at no cost or reduced cost. If odds are not calculable in advance, the advertisement shall disclose the factors used in calculating the odds. Either the advertisement, or the preamble required by Section 308.3 (A) for such service shall clearly and conspicuously disclose that no call to the pay-per-call service is required to participate, and shall also disclose the existence of a free alternative method on how to enter, or a local or toll-free telephone number or address to which consumers may call or write for information on how to enter the sweepstakes. Any description or characterization of the prize, award, service, or product that is being offered at no cost or reduced cost shall be truthful and accurate.