Key points

• Sweepstakes require careful structure: no purchase necessary, official rules, and in some states registration and bonding for larger prize pools.
• Gift cards are governed by federal rules on expiration dates and fees, state escheat and consumer laws, and by growing concern about gift card fraud.
• Reference pricing claims such as was or compare at must reflect genuine, recent prices. FTC guidance and state laws, along with rules in the UK and EU, set the standard.
• Mandatory fee disclosure rules are expanding. Total price display matters for ticketing, lodging and online checkout flows.
• Texts and emails promoting holiday offers require valid consent, and unsubscribe handling must work at peak volume.
• A short pre-season review of campaign calendars is the cheapest compliance step available.

Why the holiday season concentrates risk

Retailers run more promotions, in more channels, with more third parties, in the shortest period of the year. Campaigns are often drafted by agencies and approved on tight timelines. Regulators and plaintiffs know this, and many of the claims we see after the season trace to a handful of familiar issues.

The note below covers the issues we see most often. It is general information, not advice on a particular promotion, and rules differ by state and country.

Sweepstakes, contests and giveaways

The central distinction in United States law is among prize, chance and consideration. A promotion that combines all three is an illegal lottery. Retailers avoid this by adding a free method of entry, so that no purchase is necessary, and by giving that method equal dignity in the rules and the advertising. Contests that depend on skill are treated differently, but judging criteria must be objective and followed.

Official rules should state eligibility, dates, how to enter, prize descriptions with approximate retail values, odds where relevant, how winners are selected and notified, and the sponsor. Some states require registration and bonding for promotions with prizes above a threshold value, with New York and Florida the best known examples, and filings need to be made before the promotion starts. Social media promotions must comply with the platform's terms and with endorsement and disclosure rules when influencers are involved. Promotions open to consumers outside the United States need separate review, because some countries prohibit or tightly condition prize draws.

Gift cards

The federal Credit CARD Act and the Federal Reserve's Regulation E set baseline rules for gift cards, including limits on expiration dates and on inactivity fees. Many states go further, restricting expiration entirely or requiring cash redemption of small balances. Unredeemed balances may be subject to state unclaimed property laws, and retailers should check whether their program design affects the treatment.

Fraud is now a leading consumer protection issue. Card draining, where criminals record card numbers in stores and later empty them, and scams that induce victims to buy gift cards as payment have led to state laws and regulatory attention on packaging, display and employee training. Retailers should review in-store security, point-of-sale prompts and customer service procedures. Promotional cards, for example a bonus card given with a purchase, are subject to their own disclosure requirements, and their terms need to be clear.

Promotional pricing and reference prices

The FTC's Guides Against Deceptive Pricing treat a former price as legitimate only if it was the actual, bona fide price at which the item was offered to the public on a regular basis for a reasonable period. Many states have statutes that prescribe look-back periods or require that a reference price be a price actually charged. Retailers who set a high list price for a short time to make a later discount look larger take on significant risk, and class actions on this theory have been common.

In the European Union, the Omnibus rules require a price reduction announcement to state the lowest price applied in the previous thirty days. The United Kingdom has its own pricing guidance, and the CMA now has direct fining powers under the Digital Markets, Competition and Consumers Act. Our note on CMA consumer enforcement explains the new regime.

Door-buster and limited quantity offers should state quantities clearly, and the advertised price must be honored for the period stated. Price matching, rebate and loyalty promotions need clear conditions that are visible before purchase.

Fees and total price display

The FTC's rule on unfair or deceptive fees applies to live-event tickets and short-term lodging, and requires the total price to be shown up front. Several states have laws that cover a wider set of sectors, and some apply to ordinary retail and delivery fees. Our note on drip pricing and junk fees covers the details. Retailers should check that service, handling and delivery charges appear at the first price display wherever the law requires it.

Subscription offers that begin as holiday trials also attract scrutiny, so free trial terms, renewal pricing and cancellation steps need to be clear.

Messaging and consent

Text message promotions are regulated by the Telephone Consumer Protection Act and by state telemarketing laws, and plaintiffs file many claims each season, particularly about messages sent outside permitted hours or after an opt-out. Consent language, quiet hours and suppression list processes should be tested before volume rises.

A practical checklist: collect the campaign calendar; assign an owner to each promotion; confirm rules, registrations and disclosures before launch; test opt-outs and cancellation flows; and keep a record of approvals. Corvane Ryle's Consumer Protection team advises retailers on holiday campaigns and is hosting a compliance clinic for in-house teams.