Many of the contests held in the US are often for US residents only. Why is that?
And by contests, I mean the sort where you send in a SASE and may win a shopping spree, or the like.
I always thought it was because the contest-issuing company often pays for the winner to be transported to wherever the prize is, and paying to get someone in from another country gets quite expensive. You’ll notice these contests are often invalid in Alaska and Hawaii too.
But, that’s just my WAG. There may be a legal reason or something.
Postal laws and laws regarding contests and drawing vary widely from country to country. I wouldn’t be surprised if there were countries where the contests run by American businesses were flat out illegal. (Consumer laws can vary widely from place to place; one of the most often cited is a German law that bans 2-for-1 sales.)
Most businesses don’t have the time, the resources, or the inclination to figure out and comply with all countrys’ laws. Furthermore, a contest is usually being conducted to promote a certain product.
Companies want to spend their resources in the most efficient manner, i.e., bother with contestants in areas that are most likely to get them more customers.
Finally, the cost of shipping prizes abroad might not be worth it.
Two possible reasons:
- The rules of the contest are constrained to fit within the laws of the jurisdiction (in this case the U.S.). Adding additional jurisdictions might require additional constraints and, more importantly, additional legal work.
- The purpose of the contest is to promote some product. If the product’s market is only in the US, then there is no sense offering the contest outside the product’s market.
Usually these contests have a purpose beyond giving something to somebody. For example, if it’s to promote a U.S. product or service, it would be rather pointless to do so in Bangladesh or Australia. There are also the possible complications of dealing with the various laws of different countries.
Let me turn the question on you: why on earth would a U.S. company even consider making one of these contests international in scope? What’s in it for them if they do so?
In many cases, the purpose of the exclusion is to avoid problems with Canadians. As I understand it, most standard American-style sweepstakes are not legal in Canada. In Canada, if you’re offering a prize, there has to be an actual “contest” or competition involved.
That is, under Canadian law, it’s okay to give away a prize for solving a puzzle or answering a trivia question, but NOT just for mailing in your name, address and 2 box tops.
Sometimes, U.S. companies will get around this by including a ridiculously easy puzzle or an absurdly obvious set of “trivia” questions. Other times, they decide it’s easier to avoid dealing with Canadian law entirely, and limit the promotion to U.S. residents.
Another thought a(and IANAL): it might be an issue with providing monetary compensation to someone who is unable to legally accept monetary compensation from a U.S. source.
Not only that, astorian, but Quebec throws in a whole other set of laws that even if the contest WAS valid in Canada too, it would unlikely be valid in Quebec. Heck, a lot of CANDADIAN contests aren’t valid in Quebec! I know there are threads on this if you want to know more, but I just think that legal issues are the main reason for not holding contests outside the US/ in Quebec, etc.