Policies And Procedures For Contests And Promotions

 

  1. Procedures

 

  1. FCC Regulations and Legal Guidelines

 

  1. In accordance with FCC regulations, all contest rules must fully and accurately disclose the material terms of the contest and the contest must be conducted in substantial compliance with the rules as announced — whether on-air, on-line or promoted in other media outlets. No contest description shall be false, misleading or deceptive with respect to any material terms.

 

  1. If the material terms of any station contest are disclosed on-air, they must be fully and accurately disclosed on-air at least once a day, rotated throughout all dayparts. If the material terms of a station contest are disclosed on-line, the station must disclose on-air that the material terms are available on the station’s website.  Putting up a chyron that states “Full contest rules are available at [Station Website].com” is acceptable.  This disclaimer must be on screen for at least three to five seconds and should be in every contest spot.  There must also be a clearly marked link or tab to such material terms on the home page of the station’s website.

 

  1. Material terms include the following:

 

  • How to enter or participate
  • Eligibility restrictions
  • Entry deadline dates
  • How, when and where prizes can be won
  • Description of prizes
  • Times and methods for selecting winners

 

  1. Any material changes to the posted material terms must be fully disclosed on-air within twenty-four (24) hours and periodically thereafter until the contest has concluded and the station website must indicate the date of the most recent change. The material terms must remain on-line until at least thirty (30) days after the winner has been selected and announced by the station. After the contest has ended, the rules need to be updated to reflect the date the contest ended and the date the winner was announced.

 

  1. In addition to disclosing the material terms of each station contest on air or on-line, the station must also prepare and retain complete written contest rules, which must be made available for inspection by any member of the public upon request. The complete set of contest rules must also be posted to the station’s website.

 

  1. Contest rules must be reviewed and approved by the CBS Television Stations Law Department.

 

  1. Prizewinner Eligibility

 

  1. The eligibility of each prizewinner should be validated before declaring to the contestant that they are a winner. For call-in contests, the name of the contestant must be cross-referenced to the prizewinner database to verify that he/she is eligible to win the contest.  The contestant must also validate that he/she is of the required age to be eligible to be a winner, if applicable.  If the contestant is a minor, a guardian must also sign the required release before the prize may be distributed.

 

  1. If a prizewinner is found to be ineligible subsequent to being declared a winner, the prize must be revoked prior to it being disbursed. For all forfeited prizes, the “Prizewinner Inventory Form” must be completed to document the reason for the forfeiture.  The revoked prize must be returned to the prize closet for a future giveaway, or if permitted by law and so provided in the contest rules, the prize may be awarded to an alternate winner.  Any disqualified winner must be removed from the prizewinner database.

 

  1. The Prizewinner Inventory Form should also be completed if a time-sensitive prize (e.g. tickets to an event) is not picked up/claimed timely by the prizewinner in accordance with the contest rules. In such instance, the prize may be distributed to a client or a station employee at the Station’s discretion.  This should be reviewed with the Station’s lawyer and documented on the Prizewinner Inventory Form.

 

  1. Tracking of Prizewinners

 

  1. A master electronic database of prizewinners is required to be maintained in order to document that each prizewinner’s eligibility has been verified and to accurately track prizewinners for IRS 1099 compliance. For maximum efficiency and accuracy, stations are required to use a third party software solution (e.g. PromoSuite).

 

  1. The database must contain the following fields: Prizewinner name, address, home phone number, date of birth, the fair market Value of the prize; the date the prize was won; and the date the prize was disbursed to the prizewinner. For contests with prizes above $600, Social Security Numbers may be requested;

 

  1. For contests or promotions in which the value of the prize is $50 or less or tickets individually valued under $100, the input and tracking of individual prizewinners is not a requirement. Instead, usage of this promotional inventory can be tracked in bulk (e.g. 100 CD’s given away to listeners at a station remote).

 

  1. Prior to the disbursement of any prize, prizewinners must provide a valid proof of identification and complete and sign the station’s standard release form, the “Winner Affidavit of Eligibility and Liability & Publicity Release.”

 

  1. The station’s “Prize Sheet” is to be used as the source document for inputting prizewinners into the prizewinner database. The Prize Sheet must include the following information corresponding to the contest:

 

  • description of the contest
  • date of the contest
  • prizewinner eligibility restrictions, if applicable
  • description of the prize being given away
  • value of the prize (verified by Controller or Promotions Manager)

 

  1. The Prize Sheet should also include the following information corresponding to the prizewinner:

 

  • name
  • address
  • phone number (not required)
  • date of birth
  • Social Security Number, only if the value of the prize is $600 or greater, or when a prizewinner has aggregate winnings valued at $600 or greater in a given calendar year across all stations in the respective cluster/market.

 

  1. IRS 1099 Reporting

 

  1. Contest prizewinners awarded prizes with a CUMULATIVE fair market value of $600 or greater annually must be reported to the IRS on IRS Form 1099.  This Form 1099 reporting requirement corresponds to prize winnings across each respective CBS Television Stations CLUSTER OF STATIONS/MARKET.

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