Contests and sweepstakes are a popular way for companies to engage their fans, and companies have found that using Facebook.com to run these promotions increases the likelihood that they will be successful.  Facebook.com has more than 350 million active users and over 50 percent of these active users log on to the site at least once a day.  Over the past year, Facebook.com has increased their control over how companies can use the site to promote and administer their promotions.  Facebook.com recently posted revised guidelines to govern how companies can publicize or administer sweepstakes and contests on the site.

Types of Prohibited Contests on Facebook.com

Facebook.com has specifically prohibited a number of different types of promotions from being publicized or administered through the site.  For instance, promotions that are marketed or open to individuals under age 18 cannot be publicized or administered through the site.  Additionally, a sweepstakes cannot be promoted or administered on the site if it is open to residents of Belgium, Norway, Sweden or India.  Finally, a sweepstakes cannot be promoted or administered on the site if entry is conditioned on the purchase of a product, the completion of a lengthy task, or any other form of consideration.

Limits on Administering a Promotion via Facebook.com

Most importantly, Facebook.com recently announced that a promotion cannot be administered through the site unless the company has obtained written permission from the site at least seven days prior to the start date of the promotion.  Further, promotions can only be administered via a Facebook.com application, and entry can only occur on the canvas page of that application or on the application box on a Facebook.com page.  In other words, all promotions must be hosted on a third-party site and through an opt-in application developed specifically for the promotion. 

Facebook.com also requires that certain language now be included on the entry page as well as in the official rules of the promotion.  For instance, the official rules must contain a complete release for Facebook.com from each entrant and an acknowledgement that the promotion is not sponsored, endorsed, or associated with Facebook.com.  These rules, along with all other materials used to administer the promotion, must be submitted to Facebook.com.

Marketing insiders have also indicated that companies wishing to run a promotion on Facebook.com will be required to purchase advertising space on the site.  This advertising buy is rumored to be either $10,000 for 30 days, using the self-service advertising system, or $30,000 for 30 days of Facebook home page ads.

Limits of Publicizing a Promotion via Facebook.com

Facebook.com also severely limits how a company can publicize their promotion on the site.  The Facebook.com Promotions Guidelines broadly define “publicize” to include promoting, advertising, or referencing a promotion in any way on the site.  Thus, Facebook.com takes the position that a company mentioning its sweepstakes in a status update would be “promoting” the sweepstakes.  If the promotion is administered entirely off of Facebook.com, then prior written approval is not necessary; however, you cannot condition entry into the promotion on taking any action on the site including updating a status, posting on a profile page, or uploading a photograph.

For advice and assistance in navigating these new policies, please contact:

Anthony V. Lupo
lupo.anthony@arentfox.com
202.857.6353

Matthew R. Mills
mills.matthew@arentfox.com
202.715.8582