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SarahSays: Contest Law
Story by SarahSays
Published on January 3, 2008 in Etsy News 		Photo by dearscarlett's Unofficial Official Etsy Seller Popularity Contest Cubistliterature Portrait Sewing Kit

“Open to U.S. residents.” “Void where prohibited.”  “No purchase necessary.”  Those phrases are all over contest fine print.  But why?  And why are so many contests (including Etsy’s Survey Sweepstakes…sorry) only open to United States residents?

Contest law is very complicated due to, for example, lottery laws, gaming and gambling laws, consumer laws, trading laws, and tax laws. And to make things even more complex, contest law varies from state to state and from country to country.  In fact, depending on the contest, certain states require the posting of a bond, some states require a specific notice requirement, and other states even have laws about postage.  Yes, laws about postage!

Etsy is an international site.  We have buyers and sellers from all around the globe.  And we love our community.  To solely enable U.S. residents to participate in an aspect of our site did not sit well with me or with Etsy.  So I called an attorney who specializes in contest law to find an alternative.  Unfortunately, his response supported my disappointing findings.  He explained that in order to hold an international contest, Etsy would need to consult a licensed attorney who specializes in contest law for each and every country eligible for the contest.  And, in fact, for many countries a translator would have to draft the rules.  “How much would this cost and how much time would it take?” I innocently asked the contest law attorney.  His two-word answer was most discouraging: “a lot.”

But Etsy is not the only company who must make difficult decisions regarding contests.  Even gigantic companies grapple with these issues.  I recently traveled with a major international airline.  The magazine in my seat pocket boasted a contest ... which was open to U.S. residents only.  My favorite brand of soda advertises a reward program.  But the program is only open to U.S. residents.  And eBay’s recent contests were only open to the U.S. and in some cases also Canada (excluding Quebec).  And if we were to just put "Void where prohibited," we felt this wasn't being upfront about the issue and might end up making international Etsians even more disappointed in us in the end.

And so, as much as I would love to open up Etsy’s Survey Sweepstakes to more than U.S. residents, at this time, it’s just not feasible, and believe me, this makes us very sad.
Tags business, Competitions & Opportunities, contests, law, legal, policy, Seller Handbook, selling
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23 comments     Login to add your own!

Jan. 3, 2008 at 8:26 p.m. FunkyQuail

Then why have a contest with the survey? Just hire a professional firm to conduct a professional, independent survey of your buyers and sellers and drop the contest.

Oh, and nice change on the wording regarding why Etsy had the legal disclaimer up there in the first place! It's looking a little more professional now.

Jan. 3, 2008 at 8:32 p.m. quirke

Sarah, is it legally possible for Etsy to offer Etsy-based prizes to its entire customer base - things like showcase spots, free listings, etc - rather than money?

If so, it would be great for Etsy to entertain this possibility, and thereby include everyone.

Jan. 3, 2008 at 8:38 p.m. alkemystic88

Thanks for posting this there is a heated discussion about the topic, I posted a link to this article I understand there feelings and I don't want people to be to angry.

Jan. 3, 2008 at 8:42 p.m. Timeless

I agree with FunkyQuail, then why have a contest with the survey to being with?

If you wanted to get more people to fill out the survey, why entice only those living in the US? Wouldn't it be in Etsy's interest to have as many non-US surveys filled out as ones filled out by US shop owners and buyers?

I'm sure you Etsy Admins remember the hurt feelings and endless forum posts on the Halloween costume contest, why make the same mistake again?

Jan. 3, 2008 at 10:15 p.m. daniellexo

Timeless,
It's not a mistake. Its unfortunate but collecting as many answers as possible is the goal. This will make the site better for everyone. An overwhelming majority of our buyers and sellers are U.S. based so right now. Even though we don't like it - we still run contests that are only open to our U.S. members to help gain feedback and bring new sellers to the site.

As a Canadian (born in the U.K.), this really does make me cranky. I think we can really grow in International markets and hopefully one day we'll have mucho time and resources to make this possible.

Hope that helps!
Danielle

Jan. 3, 2008 at 10:35 p.m. babyleila

Oh well...I think when people care about Etsy, they will fill out a survey anyways! What better opportunity to give our opinion?

* off to do survey * (in Canada;)

Jan. 3, 2008 at 11:11 p.m. dangerousmezzo

So why have a contest at all?

Jan. 4, 2008 at 5:50 a.m. giraffeandrabbit

Oh, it does suck.

From Australia and a little bit disappointed, but happy that Etsy will get my feedback anyway.

I think the Halloween costume conteset was a bit different, just because there was so much effort and personal attachment involved (and why wouldn't there be, considering how long it takes to make a decent costume?). But with the survey, it really didn't take that long to fill out.

..and I don't really care if I'm not eligible, as long as the Etsy team take note of my feedback and the site is better for all. And I'm sure they will :)

Jan. 4, 2008 at 9:29 a.m. neawear

I did do the survey even tho I am in Canada. I love Etsy and I wanna help it! Which will also help me, by the way!

Yeah, many contests are US-Canada (excluding Quebec) because that would require a translator to have a French version of the context, which many are not willing to do.

So even if the contest was for Canada also, I would be excluded :(

Oh well, at least with the survey I was able to voice my opinions on the actual Etsy and suggest improvements for the future Etsy! :)

Have a nice day Etsians, where ever you are! :)

Jan. 4, 2008 at 10:21 a.m. SarahSays

Hey everyone. Thank you so much for understanding. And thanks for helping us by completing the survey even if you're outside of the U.S.

Quirke, even if the "prize" is not cash or an actual product, we would still need to comply with applicable laws. In fact, it can be more complicated when it’s harder to compute the value of the incentive. I researched that very issue.

As for the business decision to have a survey and offer a prize, although we are all very disappointed (including me, I hate being the mean lawyer) that non-U.S. residents are unable to win the prize, it's important for us to get this data. And the extra incentive to complete the survey has been shown to produce results. And with results, come a better Etsy and hopefully more sales for everyone.

Again, I'm so sorry for those who feel left out.

Jan. 4, 2008 at 10:51 a.m. BeautifulEra

Thanks for featuring my necklace in this article!

Jan. 4, 2008 at 10:53 a.m. Marmalady

if "improving etsy" is supposed to be enough encouragement for non-usa member to take the survey --why isnt it enough for usa members too?

are americans less likely to fill in surveys than the rest of the world?

the survey should have stood or fallen on its own merits without any inducement to only part of its target audience (whatever the reason for the restriction is)

Jan. 4, 2008 at 12:03 p.m. CubistLiterature

I just like that sewing kit!

Jan. 4, 2008 at 12:53 p.m. kimonomomo

IMO the survey was more important than the contest and I would have filled it out regardless of where I live. I appreciate that the Etsy community was given a voice, and that admin heard how so many people were upset about being excluded in any way.

Kudos, peeps.

Jan. 4, 2008 at 2:27 p.m. knittingmette

thx Sarah....
just let you know that I'm the lucky FIRST PLACE WINNER here
http://www.knittingpatternaday.com/wi...

I felt lucky until today... now I feel TWICE as lucky as before! (hope you understand!)

Well, I accept etsy as well, but think that the survey should had been without a contest... hope they'll do without next time!

Jan. 5, 2008 at 9:15 a.m. whoozqueen

I understand the reasoning behind continuing to offer a prize for only US participants, however it does reinforce to we non-US users of Etsy that we're the 'second best users', not equals.

Jan. 5, 2008 at 11:43 a.m. skully

I think by offering a prize to one section and not another section of users for whatever reason will make the survey results skewed. Wasn't it enough that the questions were American centric without adding the skewing of the selective prize draw? What about the fact that the survey can be taken more than once? Skewing the results futher.

Jan. 7, 2008 at 2:38 p.m. ColibriDreams

Thanks for explaining the reasons why the contests are only for US participants. It still sucks, but I guess you can't do much about it. I took the survey anyway. I hink next time you could just leave the contest and make only a survey - if we international sellers/buyers take it without any prizes, surely the Us users can do that too. And I agree with skully, you shouldn't be able to take the test many times.

March 2, 2008 at 5:28 a.m. thatretrothing

thanks for the info!

and one day... one day we will find solutions together...

Any time you need info from Mexico just let us know!

Regards
That Retro Thing Inc.
Illusion Nature Company

July 15, 2008 at 7:45 p.m. yaelfran

When another contest took place here (I was the winner!!) I participated with no problem!!!!
Why now can't I????

July 15, 2008 at 7:58 p.m. yaelfran

I have an idea: what about having an international contest (same theme, same rules) with no prizes?
Just people voting and having fun?

July 15, 2008 at 7:58 p.m. yaelfran

sorry for the bis! :)

Aug. 28, 2008 at 12:43 p.m. dougal2110

I understand why Etsy wants to offer an incentive to US members to vote - but the idea of offering those of us who live elsewhere the chance to participate, even if we can't join in the prize draw, seems a good one.

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