What should be considered when running sweepstakes on social media?

Sweepstakes on social media are a great way to build customer loyalty or even to grow your own social media channels. However, the legal requirements…

Sweepstakes on social media are a great way to build customer loyalty or even to grow your own social media channels. However, the legal requirements should be observed.

Above all, sweepstakes must be designed and executed transparently. In principle, there must be no deception of users.

From a legal point of view, the lottery must be measured against § 657 BGB:

Anyone who offers a reward by public announcement for the performance of an act, in particular for bringing about a success, is obliged to pay the reward to the person who performed the act, even if this person did not act with regard to the offer.

In addition, competitions must not be misleading, as otherwise there is a risk of warnings under the Unfair Competition Act (UWG)

Important points include:

Of course, all rules can also be included in extra conditions of participation. However, these must be accessible via the same medium as the competition. So you can’t host a contest on Twitter or Twitch and hide the terms and conditions somewhere on your own website.

Of course, conditions, prizes or the like may not change later, after some people have participated, to the detriment of those people.

If, by the way, you want to take fees for participation, they should not exceed 50 cents according to current case law, and young people/children under the age of 14 should not be allowed to participate in paid lotteries at all. .

Especially when we talk about sweepstakes on Twitch or YouTube, it is important to note that all other aspects of the protection of minors must of course be observed as well. Thus, these are not likely to be developmentally disruptive and the gains are commensurate. As an example, computer games that are not rated for minors may not be part of the sweepstakes if young people can participate (not just not allowed!) and of course you may not offer products that are not rated for minors as prizes.

Considering the current discussion about influencers and surreptitious advertising, it should be noted that a note is necessary if the prizes come from sponsors and what the intention of a competition is. For example, a notice or clarification is mandatory if a sweepstakes or contest is conducted as part of an advertising campaign for which the streamer/influencer is paid.

Data protection must also be taken into account. Users must therefore be informed about the way in which data is stored, only the necessary data may be collected, and the data must be stored securely. Of course, other GDPR requirements such as information to users or deletion by users must also be observed. If data of persons under the age of 16 is stored, the consent of the parent or guardian is generally required.

Violations may result in warnings from competitors, but also in reactions from the media authority, for example. Failure to send winnings or pay winnings will expose you to civil claims.