Do’s and Don’ts for Time-limited Incentives (Giveaways)

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Social media can be a great asset to your multi-faceted Stella & Dot business.  The best use of Social Media is to increase your network and follow up with prospectives to book In-Person Events to help you have a sustainable business.

At times you may notice others in our Stella & Dot community offering public giveaways and incentives via Social Media. If you decide that you want to host a giveaway in honor of something special, please review the below do’s and don’ts to make sure you are conducting the giveaways fairly and within compliance of our Policies and Procedures’ (P&Ps.)

DO’s

  • Time-limited incentives (giveaways) can only be conducted 1 time per quarter
  • Inform a small, private group (less than 50 people or the size of your Event invite list) of your event which cannot be held for more than 3 consecutive days
  • Make it clear you as the IBO, are holding the giveaway, not Stella & Dot Family Brands
  • Post all eligibility requirements
  • Clearly indicate the prize, its value, and the odds of winning
  • Make sure you are compliant with any third-party terms
  • Choose the winner fairly
  • Follow up with all that are potential leads
  • Let your Ambassadors know about these policies so they can be in compliance- when you see something say something!
  • As a last resort report to Compliance@stelladot.com if you see people who are consistently not following our policies.

DON’Ts

  • Put a blanket discount on your personal Facebook page for a sales event
  • Promote any offer that would undercut the retail price of Stella & Dot Family Brands products
  • Require purchase to enter
  • Publicize the winner without their permission

For more specifics on the Do’s and Don’ts please refer to Policy 2.8 Mystery Host at a Sales Event and Policy 2.16 Blanket Discounts in your Policies and Procedures’ (also listed below).

2.8 – Mystery Hostess at Sales Events

When a Business Owner hosts a Sales Event without having or disclosing the Host prior to rewards being earned, this is called a “Mystery Host.” While this is a fun way to rev-up excitement and a great marketing tool, it can occasionally lead to confusion or concerns among guests. You are responsible for fully servicing any such concerns among your customers. You may want to offer a giveaway prize to other Sales Event attendees as part of your Mystery Host Sales Event. These giveaways are yours and not from Stella & Dot Family Brands. To ensure your giveaway is successful, keep the following in mind:

  • You cannot require participants to make a purchase to participate. If a purchase is one way to get an entry, make sure that guests can also enter for free. You must ensure that everyone has an equal chance to win regardless of how they enter;
  • You should make clear that you, not Stella & Dot Family Brands, are the sponsor of the giveaway;
  • You must objectively and fairly choose the winner (e.g., by a random drawing);
  • You must clearly indicate the prize and its value and the odds of winning;
  • You must make clear how someone is eligible to enter and when the contest ends;
  • You must make clear to the winner that she/he is responsible for any taxes associated with the prize, and you may need to take care of reporting obligations;
  • If you are promoting your Mystery Host Sales Event promotion on a social media or third-party website, make sure you are compliant with any third-party terms, including guidelines specific to sweepstakes or contests. For example, Facebook and Instagram have promotion guidelines; and
  • If you will be publicizing the participants or winner (e.g., in photos online), make sure you have the permission to do so.

As with all of your activities as a Business Owner, you are responsible for ensuring that your giveaway – including your marketing messages and promotions – is in compliance with all applicable federal, state or local laws or regulations or any third-party rights. This includes, for example, truth in advertising laws and gaming laws, which can vary from state to state.

 

2.16- Blanket Discounts

In order to provide a level playing field for all Business Owners, blanket discount offers are not permitted at Sales Events, through your PWS, or other marketing channels, including but not limited to offers such as “25% off everything at my Sales Event,” “Place an online order today and receive 15% off,” or “Free shipping on all orders.” Any other offer permutations that serve to undercut the retail price of Stella & Dot Family Brands Products are restricted. However, you may offer occasional, specific and time-limited incentives, which must:

  • Be offered to a closed, specific group of individuals (such as a club, not an open invite to anyone who can view your Facebook profile, for example). The size of the closed group should align with the size of an average Sales Event Invitation list;
  • Run for no more than three (3) consecutive days; and
    • Occur no more than one (1) time per calendar quarter.

Additionally, you may not offer discounts on any new or current line products. If you do need to sell 1-2 current line samples because they did not resonate with your customers or due to wear, you may not promote those items in any online websites or forums and/or marketing vehicles. As long as these guidelines are followed, you may personally incur the cost of the specific promotion for your customers, the way you see best fit. Please note that your promotional discount should not contribute to earning the minimum PQV in order to qualify or promote as this could be considered ‘Bonus Buying.

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