If we conduct a drawing for customers and non-customers who “like” or “follow” our social media pages, is that considered a lottery in Illinois? Also, when advertising this social media drawing on our website, can we link to a separate webpage that would contain the disclosures required by the Prizes and Gifts Act? Does having the disclosures “one click away” from the advertisement satisfy the requirement that the “offer must contain each of the following [disclosures] in a clear and conspicuous statement at the onset of the offer”?

The social media drawing you describe likely is not considered a lottery under Illinois law. Illinois’ lottery prohibition includes an exception for promotions in which no payment or purchase is required to enter. In this case, both customers and non-customers would qualify for the drawing by “liking” or “following” your bank’s social media pages — not by making payments or purchases. Therefore, we do not believe that the promotion would violate the Illinois lottery prohibition.

Regarding disclosures, as you pointed out, the Illinois Prizes and Gifts Act requires written promotional prize offers (such as your drawing) to contain nine specific disclosures in a clear and conspicuous statement at the outset of the offer. We are unaware of any regulatory guidance or court cases that clarify whether the disclosures may be contained on a separate webpage from the advertisement.

However, certain federal regulations regarding online advertisements permit disclosures to be displayed on a separate webpage, one link away from the advertisement itself. For example, in the official interpretations of Regulation DD, when an electronic advertisement triggers mandatory disclosures, “the advertisement must clearly refer the consumer to the location where the additional required information begins. For example, an advertisement that includes a bonus or annual percentage yield may be accompanied by a link that directly takes the consumer to the additional information.”

Regulation Z’s official interpretation has similar provisions for electronic advertisements where the lender has decided to display required disclosures in a table or schedule. In such a case, the lender must clearly direct users to a link where they can find the additional required information.

In our view, the disclosure requirements under the Prizes and Gifts Act are similar to these federal disclosure requirements, and we think that a link to the required disclosures on a separate webpage would be acceptable under this Act in the circumstances you describe. However, it is difficult to predict how an examiner or a court would interpret the Act on this point. Consequently, you may wish to consult with your bank’s counsel before posting the promotional prize offer with its disclosures on a separate webpage.

For resources related to our guidance, please see:

Illinois Criminal Code, 720 ILCS 5/28-2(b) (prohibits gambling, including lotteries, and defines “lottery”)

Illinois Criminal Code, 720 ILCS 5/28-1(b)(13) (lists exemption for drawings where money or things of value can be won but no payment or purchase is required to enter)

Illinois Prizes and Gifts Act 815 ILCS 525/25 (listing nine disclosures that a written promotional prize offer must contain in a clear and conspicuous statement at the outset of the offer)

Regulation DD, Official Interpretations, 12 CFR 1030, Paragraph 8(a), Comment 9 (“If an electronic advertisement (such as an advertisement appearing on an Internet Web site) displays a triggering term (such as a bonus or annual percentage yield) the advertisement must clearly refer the consumer to the location where the additional required information begins. For example, an advertisement that includes a bonus or annual percentage yield may be accompanied by a link that directly takes the consumer to the additional information.”)

Regulation Z, Official Interpretations, 12 CFR 1026, Paragraph 16(c)(1), Comment 2 (“If an electronic advertisement (such as an advertisement appearing on an Internet Web site) contains the table or schedule permitted under § 1026.16(c)(1), any statement of terms set forth in § 1026.6 appearing anywhere else in the advertisement must clearly direct the consumer to the location where the table or schedule begins. For example, a term triggering additional disclosures may be accompanied by a link that directly takes the consumer to the additional information.”)

Regulation Z, Official Interpretations, 12 CFR 1026, Paragraph 24(e), Comment 4 (“If an electronic advertisement (such as an advertisement appearing on an Internet Web site) contains the table or schedule permitted under § 1026.24(e)(1), any statement of terms set forth in § 1026.24(d)(1) appearing anywhere else in the advertisement must clearly direct the consumer to the location where the table or schedule begins. For example, a term triggering additional disclosures may be accompanied by a link that directly takes the consumer to the additional information.”)