Too many brands treat sweepstakes rules, privacy requirements, and state-by-state regulations as a final checklist item. That attitude creates risk. The regulatory environment in 2025 is shifting fast, and we expect the same trend in 2026 and beyond. States are rewriting privacy laws. Regulators are tightening their expectations around fairness and transparency. Categories like alcohol and tobacco face approval processes that most marketers do not realize exist.
If you want a promotion that drives revenue without exposing your brand, you need a compliance plan that keeps up and brings the most up-to-date knowledge and protection to the first conversation.
States are changing the rules faster than brands are adapting
Federal attention on consumer protection has softened, which means states have stepped in with their own interpretations. The result is a fragmented map of privacy laws that keep evolving.
Connecticut revised its privacy law again and now gives consumers the right to know when their data is shared with third parties.
Oregon banned the sale of location and personal data for consumers under 16. This trend will continue as more states build privacy legislation on their own terms. When each state defines “fair,” “private,” or “transparent” differently, a one-size-fits-all set of rules does not protect you. Your promotional architecture needs the flexibility to adjust to state-level requirements.
A legal sweepstakes must offer a real free method of entry (the AMOE or NPN)
We know this can bring up a few feelings, because after all, why do we have to worry about consumers who aren’t going to make a purchase? But here’s the thing: there is no debate here. If any entry method requires a purchase, you must include a clear, accessible free method of entry. That is your AMOE and it’s a crucial part of any promotion.
If the AMOE is hidden, buried, or hard to find, you do not have a compliant sweepstakes. You have created unnecessary risk for your brand. It’s important that a brand sets this up the right way, provides equal dignity to consumers who may want ot enter, and does not purposely hide the AMOE. We’re not saying you have to promote this in the same way you do your main headline or CTA on the program, but make sure it’s clearly listed in the rules and on your creative or digital assets. In fact, the FTC can provide guidance on promotional fairness if you need another way to check this out.
Strong rules protect your brand and guide consumers
Official rules are not paperwork or just another item you need to “phone-in” or check off a list. Done right, they provide the language to consumers on how to enter, what they will get, and expectations around the prizes (don’t forget the taxes!). It’s somewhat like a contract between you and every person who choses to enter. If you want to get a start, the complete rules must include:
- No purchase necessary language and AMOE instructions
- Promotion dates
- Eligibility requirements and exclusions
- All entry methods
- Entry limits
- Prize descriptions and ARV
- Winner selection process
- Notification steps
- Sponsor name and address
Clear rules prevent complaints, disputes, and legal exposure for the brand. They also demonstrate respect for your audience. Without them, the promotion might not have that strong a foundation needed to make consumers feel good about entering.
Loyalty programs face more oversight than ever
Loyalty programs used to fly under the radar, mainly when it came to handling consumer data. We’d say those days are done and not coming back any time soon. States are scrutinising how brands collect, segment, and retain data. They want clarity on why you collect it and whether consumers understand the terms.
Auto-renewal disclosures are tightening. Cancellation must be simple. Data used for marketing must be kept separate from data used for fulfilment or fraud detection.If a consumer cannot explain your loyalty value exchange in one sentence, your program needs refinement. Keep that in mind when you’re looking at the rules or terms on the program.
Regulated categories carry additional weight
Alcohol is a clear example of this, and need extra oversight when it comes to running a program. Many states require promotional approval before launch. Florida, New York, and Rhode Island each have their own rules around registration and bonding. Skipping this process, or even missing the deadline, creates delays and fines. If your promotion lives in a regulated category, your partner must know this world in detail.
Privacy impacts how you collect and handle data
Modern promotions run on data; it’s one of main benefits to running a secure promotion. The problem is that data collection must match the privacy expectations of every state where the promotion runs; otherwise, you’re looking at potential issues and probably upset consumers. Here’s what you must know:
- What you collect?
- Why you collect it?
- How long you store it?
- Who can access it?
- How the consumer can opt out?
- How your system responds across state lines?
Remember, privacy compliance is not optional. It is the baseline of consumer trust and must be done the right way each time.
Why brands choose Secure Digital Promotions
At SDP, we treat compliance as a strategic advantage. We’ve worked across various industries and launched programs for small, medium, and large businesses. Promotions perform better when legal, security, and digital execution move together. We support your team through:
- Complete rule drafting and legal coordination
- AMOE design and placement
- State-level guidance and filings for regulated categories
- Data privacy review and recommendations
- Clear, frictionless consumer experience design
- Secure winner management and tax reporting
- Fraud prevention across all entry paths
Your team should not have to guess whether a promotion is compliant. We give you clarity, speed, and confidence so you can launch without risk.
Promotions are one of the fastest ways to capture attention, build loyalty, and drive incremental sales. They also carry legal responsibilities that are easy to overlook. The brands that win take compliance seriously and work with partners who understand the details behind the scenes.
If you want your next promotion reviewed or need guidance on a new program, reach out. We will help you build something safe, secure, and effective.
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