Consideration
Something of value an entrant gives up in order to enter — money, a purchase, or in some jurisdictions substantial time and effort.
Consideration is the element that turns a prize-and-chance promotion into a lottery. Monetary consideration is straightforward: a purchase, an entry fee, a donation, a paid subscription, or indirect spending such as buying a ticket to the event where entries are collected.
Some US states also recognise non-monetary consideration, where an entrant is asked for substantial time, effort, or personal information rather than money. Treatment varies by state and the boundary is genuinely unsettled: a comment or a follow is ordinarily trivial, while a filmed submission, a long application, or mandatory daily activity is worth asking a lawyer about.
Removing consideration is the entire reason free entry exists.
Guides that use this term
- How to legally run a social media giveaway
- "No purchase necessary" explained for creators
- Sweepstakes vs contest vs lottery: what creators are actually running
- Can you require a purchase to enter a giveaway?
- Can subscribers or paid members receive giveaway entries?
General information, not legal advice
Dollar Fan Club provides general educational information, not legal advice. Laws, regulations, and platform policies vary by jurisdiction and can change, and the information on this page may not apply to your specific circumstances.
Reading this page does not create a lawyer–client or any other professional relationship. Verify current requirements using the primary sources cited on this page, and consider consulting a qualified legal professional where appropriate. Dollar Fan Club does not guarantee that any promotion is legally compliant.