Can a service business run a giveaway or contest on Facebook or Instagram, and what rules apply?

Ascent Vision · Published October 25, 2026

Yes, within the rules. Instagram's promotion guidelines make the business responsible for running a promotion lawfully, with official rules, eligibility terms and a statement that Instagram does not sponsor it. The FTC says sweepstakes that require a purchase are illegal in the United States, and state laws vary. If entrants post to enter, the FTC suggests a hashtag with the word contest or sweepstakes in it. This is a plain summary, not legal advice.

What Instagram's guidelines require

Instagram's "Promotion Guidelines" say that if you use Instagram to communicate or run a promotion, such as a contest or sweepstakes, you are responsible for running it lawfully, including the official rules, the offer terms and eligibility requirements (such as age and residency limits), and following the rules that govern the promotion and its prizes.

The guidelines say each promotion must include a complete release of Instagram by each entrant and an acknowledgement that the promotion is not sponsored, endorsed or run by, or associated with, Instagram. They also say not to encourage people to tag content inaccurately, such as tagging themselves in a photo they are not in. Facebook's rules for promotions may differ, so read its promotion terms before running one there.

No purchase, and state law

This is a plain summary, not legal advice. The FTC's "Advertising FAQ's: A Guide for Small Business" says sweepstakes-type promotions that require a purchase by participants are illegal in the United States. It says each state has laws that may require promoters to make disclosures, seek licensing or post a bond, and since state laws vary, to check with the Attorney General's office in each state where you advertise.

Florida is one example. Section 849.094 of the Florida Statutes covers game promotions, including contests and sweepstakes, in which the elements of chance and prize are present. It makes it unlawful to require an entry fee, payment or proof of purchase to enter, to fail to award the prizes offered or to rig the result, and when the total announced prize value is above a set amount, it requires the rules and prize list to be filed with the state's Department of Agriculture and Consumer Services at least 7 days before the start, and a trust account or surety bond to cover the prizes. As general advice, say in the rules whether the winner is drawn at random or judged, since state laws can treat the two differently.

When entrants post or tag you

The FTC's "Endorsement Guides: What People Are Asking" treats a chance to win a prize as something of value, so a post made to enter is not a plain recommendation. It says a hashtag such as #XYZ_Rocks is not enough to tell readers a post was part of a contest, that putting contest or sweepstakes in the hashtag should be enough, that sweeps probably is not, and that you should tell entrants where to put the disclosure, such as at the beginning of the post.

Never make a review a way to enter. The related answer on discounts for reviews explains why any reward for a review is off limits.

Make it worth running

Offer a prize tied to your service, such as a seasonal check, so the people entering are people who might hire you.
Keep entry simple, and write every step of it in the rules.
Set a clear end date, and announce the winner when you said you would.
Contact entrants by call or text only with the person's consent.
Record inquiries that come from the giveaway as social leads, with the post named, and follow each to won, lost or still open.

Sources

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