Explanation:

A sweepstakes is a random drawing. This is what most people think of when talking about a promotion, but a sweepstakes is actually a specific type of promotional marketing tool. In order for a sweepstakes to be deemed legal, “consideration” needs to be eliminated from the mix, leaving prize and chance.

A sweepstakes allows all participants to enter without a purchase (“NO PURCHASE NECESSARY.”). If there is a purchase requirement, an Alternate Means of Entry (“AMOE”) that doesn’t involve a purchase requirement must be made available to participants. This free method must be clearly and conspicuously disclosed to all participants. All participants must have the same opportunity to win the same prizes from the promotion therefore chance determines the outcome of the winner. Some examples of AMOE include forms that must be filled out either by hand and mailed in, or filled out and submitted online.