What is the No Purchase Necessary law?

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The No Purchase Necessary or Enter to Win law, also known as the Lottery Law, is a federal law enforced by the Federal Communications Commission (FCC), the Federal Trade Commission (FTC), and the USPS. According to the FTC, sweepstakes-type promotions that require a purchase by participating are illegal in the US (and most other countries).


A lottery has always been a smart way to raise money. In fact, in early American history, lotteries were regularly used to accumulate funds for schools, roads, bridges and other public works projects. It was in the mid-1800s that anti-lottery sentiments began to inspire lawmakers to put lottery laws on the books due to a growing number of cases involving fraud and lottery phone number lead scams. Hence, the No Purchase Necessary law was born, allowing non-government entities to offer sweepstakes and giveaways as long as no purchase or consideration be made in exchange for a chance to win.


Secretary of War Newton D. Baker, blindfolded, drawing the first draft numbers in the lottery to be called up to serve in the American forces during world War I