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I have seen too many people doing contests on blogs, Face Book pages and, other sites and they have no idea they are doing something against the law.  I am linking the Federal Trade Commission site that gives you the correct information.

http://www.consumer.ftc.gov/articles/0199-prize-offers

You will see that you CAN NOT ask people to buy your product for a chance to win something! 

There are several other rules to be aware of if you insist on doing it yourself.  Be aware that there are services that are free, such as http://www.rafflecopter.com/  and it would be much safer to use them instead of risking high fines.

This is another link that should help you:  http://www.ehow.com/how_4773307_run-contest-website.html

Just be smart and do your research before you get into trouble, it's not that hard.

12/28/2012 03:08:45

Most writing contests online are also illegal. By definition a contest is based on some skill and judged objectively. Most writing contests online are nothing more than popularity contests and membership drive campaigns. Very few are judged on the skill of the writer and the quality of the story.

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