When you start to regularly enter into sweepstakes you will likely notice a common theme (at least when it comes to U.S. sweeps) and that is the phrase “no purchase necessary.” This might surprise you as the point of a contest is usually to better business; however the fact of the matter is, in the United States it is illegal for there to be a cost or charge to enter a giveaway that selects its winner at random.
Because the companies who hold the sweeps obviously do not want to break the law, they comply, and thus you see that there is no purchase necessary for entry. You also may notice that you’ll find some giveaways where you must be a member in order to enter. This gets a little tricky because we all know that most membership programs come with fees, which would make it seem like you’d need to sign up in order to enter. Though it appears that way, companies are allowed to hold contests solely for their members, however in order for it to be legal they will typically include a clause which states that you must have previously been a member before entry - so that you’re not signing up & paying for a membership in order to participate in their competition.
Ultimately, although these companies cannot charge for entry into their sweepstakes, the giveaway still raises their brand awareness; so even if you’re not purchasing anything maybe you’re being introduced to a company for the first time that you would not have come across otherwise. In the end it’s basically an advertising opportunity for them, almost like an investment and an even better opportunity for you as the entrant as you have the chance to win without having to spend any money!