Can I run an Instagram giveaway legally?

Instagram giveaways are legal in the US but operate under three overlapping rule sets:

1. Instagram's Promotion Guidelines. Instagram requires that you (a) acknowledge that the promotion is in no way sponsored, endorsed or administered by Instagram, (b) provide official rules, terms, and eligibility requirements (e.g., age and residency), and (c) comply with applicable rules and regulations. Failing to include the "not endorsed by Instagram" disclaimer is the most common violation.

2. Sweepstakes vs. lottery distinction. In the US, a lottery (illegal without a state license) has three elements: prize, chance, AND consideration. A sweepstakes drops the consideration element — there's no purchase required to enter. To stay on the legal side, never require a purchase to enter your giveaway. Liking a post, following an account, and tagging a friend are all considered "de minimis" effort and aren't legal consideration in most US states. Requiring a paid product purchase IS consideration and makes it an illegal lottery in most jurisdictions.

3. FTC disclosure. If you partner with an influencer or pay anyone to promote the giveaway, both the partnership AND the giveaway entry mechanic need clear disclosure.

State-by-state variation: a handful of states (notably Florida, New York, Rhode Island) have additional registration and bonding requirements for prizes over a certain value (typically $5,000). Most small-business giveaways stay well below that threshold.

What to include in your official rules: • Sponsor name and address • Eligibility (age, US-only or specific states) • Start and end dates with timezone • How winners are selected (random drawing recommended) • Prize description and approximate retail value • How and when winners will be notified • "This promotion is not affiliated with or sponsored by Instagram"

Alternative that avoids all this complexity: instead of a giveaway, offer a guaranteed perk for posting ("every customer who posts gets a free latte"). No randomness, no lottery question, just an incentive — which is the model Social Perks is built around.