While contests are a lot of fun, you should be aware that there are many federal and state laws regarding how you must conduct a contest. There is no worse public relations nightmare than having a station contest shut down by a state or federal agency. Seek out the contest rules and regulations at the federal level by doing searches at the Federal Communication Commission web site www.fcc.gov. The Federal Trade Commission regulates contests in general and their web site is www.ftc.gov.

Many states have laws regarding contests. For example, a common state law requires the organizer of a contest offering a prize that exceeds a specific cash value to post a secure bond with the state to ensure that the organizer awards the prize fairly. I was involved with a car giveaway once, and since our prized exceeded $25,000 in value, we had to post a bond with the state for the retail value of the car. Should a station not conduct the contest properly, the state can step in and award the prize. To find specific contest laws in your state, contact your State Attorney General's office. Some states also provide this material online.

Always check with the station's attorney before launching a contest to ensure that you comply with all applicable laws. For example, radio stations must be very careful to conduct a contest and not a lottery. There is a big difference, as you will learn in your communication law class. This also brings up an interesting point with regard to the copy for promotional contests. Once the station's attorney and management approve the copy, it cannot change without exposing the station to some form of liability.