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AtionSong · Unfettered Joined: 29 Aug 2006 Posts: 352

[QUESTION] Legalities of For-Profit ARG

**Posted:** Sat Apr 28, 2007 6:10 pm

Rekidk

Hm. I'm no lawyer, but I'm pretty sure that you can sell a product on the internet with basically no legal issues. I mean, you're just selling something. Making a profit is a given when you sell something.

However, it does get more complicated (I think) when you offer a prize. If the prize is just a 'bonus' and is available to any player that plays the game, and your players trust you, you probably don't need a contract. If your players might not trust you, you may need to get a lawyer to write you up one of those 'contest entry' things.

It becomes very tricky when the purchase of the item you mentioned is like a 'ticket' to win the prize. Then you need to have a lawyer writing you something, similar to what would be on the back of a lottery ticket or other game of chance (except that obviously, it would be a game of skill, etc.).

But going back to what I said earlier... If you just want to sell some pins or books to cover personal costs and maybe make a small profit, you don't need legal help.

Keep in mind that you'll need a secure form of payment, and that players probably won't buy something until they trust you (because you've given them a quality game up until that point).

Just my opinion. I'm not a lawyer, and honestly, I think that if you offer a prize you should at the very least talk to one.

**Posted:** Sat Apr 28, 2007 7:04 pm

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Caz · Veteran Joined: 18 Aug 2006 Posts: 127

How I'm going to get around this is in my game.

I living in the UK there for the game falls under UK/EU law. There for I can give out a prize as long as there is some skill in the game. we will seed out the prize if the winner is from outside the UK but we take no responsibility for the breaking laws out side the UK.

and its free to play and its not a cash prize.

that what i'm going to say if i get draged into court. Confused

and this dose not help of you live in the US.

but how are you going to make the money if you sell a book as a rabit hole i think total Legal as your selling a book with clues in side that leads to the prize. as long as you don't have to buy the book to get the prize to buy the book.

**Posted:** Sat Apr 28, 2007 7:50 pm

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EarlyWyrm · Veteran Joined: 27 Nov 2006 Posts: 144 Location: Houston

Not a necessity, but if you have the slightest doubt about legal ramifications I would strongly suggest running the game through a Limited Liability Corporation (LLC). It's extremely easy to set up, very low cost, and can be a life saver if things go wrong. Not to mention the tax benefits Smile

Run every last aspect of the game through the LLC - subscription, domain registration, product production/shipping/receiving, TOS, paypal accounts, etc etc...

Google is your friend, but PM me if you want some tips.

**Posted:** Sat Apr 28, 2007 8:36 pm

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EntropyRising · Boot Joined: 16 Dec 2003 Posts: 13

On the LLC I concur with EarlyWyrm.

If you are selling products and your state charges sales tax, you would have to collect sales tax on any product that was sold to someone in your state.

As Rekidk says, the prize thing is a bit slippery. If all you have to do to collect a prize is sign up for the game, at no cost, you are likely in the clear. Even at that, you would have to put up a terms and conditions stating that making any purchases, giving donations, etc, will not increase chances of winning.

**Posted:** Tue May 22, 2007 1:56 pm