Contests seem to be a big part of promotions these days. So, if you’re new to the online sweepstakes and contest industry, there are some phrases and lingo you may hear that you’re not familiar with. Below are some common legal terms that will help you better understand the ins and outs and lingo of online sweepstakes and contests.
- 18+ US (48) - This means that in order to be eligible for the sweepstakes, you should be at least 18 or over and live in continental United States. Alaska and Hawaii aren’t typically included here.
- ARV - ARV stands for “Approximate Retail Value” or in other words, what you’d pay if you were to purchase that prize. For example, if you win a vacay, the ARV would include the approximate cost of the flights, stay, transportation, etc.
- FMV - FMV stands for “Fair Market Value”. This value is important for tax purposes. The value is the amount that the sponsor paid for the prize, which is why there could be a difference between the ARV and the FMV.
- IW - IW stands for Instant Win. This type of sweepstakes is exciting as players find out immediately whether or not they’ve won. Instant win sweepstakes mean no waiting period and make claiming your prize easier since you’ll know right away.
- GC - This stands for a gift certificate or gift card. This is a prepaid stored-value money card and is issued by a retailer or bank to be used as an alternative to cash for purchases within a store or related businesses.
- Affidavit - An affidavit is a legal document that contains a statement that verifies your personal info, like your name, age, social security number, etc. This helps ensure that the potential winner is legitimate. Affidavits must be witnessed by someone authorized to verify your info, such as a notary public. You’ll only need to worry about this if you’ve won a prize.
