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Yeah, at last! East Tennessee is liberal!
I believe that in the FTC's view, a "contest" is a game of skill. Your "contest" requires no skill beyond buying a print newspaper and filling out a form (I am being sarcastic -- this is NOT a skill). In other words, it's not a contest.
It's also not a sweepstakes, which is free to enter without a purchase of any kind.
By saying that the "contest" entry forms are in hard copies of the paper, you are essentially making people "purchase to enter." THIS IS ILLEGAL.