Question

Which two of the following are required by federal and state laws and monitored by the Federal Trade Commission regarding the use of contests and sweepstakes?

Select two options:
a) Participant age verification
b) Prize disclosure
c) Social media promotion
d) Online registration process
e) Winner selection transparency

Answer 1

Prize disclosure and winner selection transparency are the two requirements by federal and state laws enforced by the FTC for contests and sweepstakes; these ensure transparency and fair play.

Step-by-step explanation:

According to federal and state laws, particularly those monitored by the Federal Trade Commission (FTC), there are specific requirements for the use of contests and sweepstakes. Out of the options provided, the two requirements are: b) Prize disclosure and e) Winner selection transparency.

Prize disclosure is necessary to inform participants about the prizes in a clear and truthful manner, ensuring that all representations of the prizes are not deceptive. Winner selection transparency involves the open and fair process of determining the winners, to avoid the appearance or reality of impropriety. Both of these contribute to protecting consumers from misleading practices and ensuring that the contests and sweepstakes are conducted fairly.