What Advertisers Need to Know About Running Contests and Advertising

Recently, both Facebook and Twitter have enhanced their advertising and promotions guidelines. In this Analysis, Ed Chansky, Alan Sutin, Kristen Fancher, Andy Moore and Tracie Chesterman describe the primary features of Facebook's new rules regarding contests and sweepstakes, as well as the key concerns for companies using Facebook and Twitter for advertising purposes. They write:

B. Publicizing a Promotion Through Facebook

     Merely publicizing the existence of a sweepstakes, contest or other similar promotion that is conducted at a completely different location, such as the advertiser's own website, is generally permitted and does not require approval from Facebook. Such advertising may occur via Facebook "wall posts," on the sponsor's page, or via status updates on that page.

C. CAN-SPAM and General Considerations for Facebook Promotions

     A sponsor may be held responsible for not complying with the CAN-SPAM [Controlling the Assault of Non-Solicited Pornography and Marketing Act, 15 USCS § 7701, et seq.] law as the sender of a forwarded electronic message if the sponsor compensates the consumer (including giving additional sweepstakes entries) to "refer-a-friend" or otherwise to forward a commercial electronic message. The issue can get complicated on Facebook where users have several different ways to share information. Some of those ways merely involve posting information to the user's own "wall" or profile page, which arguably should not be covered by CAN-SPAM.

     Other methods involve sending messages to friends in a manner more akin to traditional e-mail, which poses a greater risk of triggering the CAN-SPAM laws. This is an emerging area where careful attention to the technology, as well as legal advice, are important.

     In addition to its specific Promotions Guidelines, Facebook also has general guidelines for advertising. Most of Facebook's Advertising Guidelines are based on common sense, but also include requirements to abide by certain privacy and other standards established by Facebook. Facebook's complete Advertising Guidelines can be found at www.facebook.com/ad_guidelines.php.

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