CONTEST RULES/PRECEDENTS
Do you need contest rules/precedents
for a Canadian contest?
We offer many types of Canadian contest/sweepstakes law precedents and forms (i.e., Canadian contest/sweepstakes law precedents to run common types of contests in Canada). These include legal precedents for random draw contests (i.e., where winners are chosen by random draw), skill contests (e.g., essay, photo or other types of contests where entrants submit content that is judged to enter the contest or for additional entries), trip contests and more.
Also available are individual Canadian contest/sweepstakes precedents, including short rules (“mini-rules”), long rules, winner releases and a Canadian contest law checklist.
For more information and to order see: Canadian Contest Forms and Precedents.
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[“Fair and adequate disclosure”, section 74.06(a), Competition Act]: “In order to satisfy the requirement of the provision, disclosure should be made in a reasonably conspicuous manner prior to the potential entrant being inconvenienced in some way or committed to the advertiser’s product or to the contest. Therefore, the Commissioner does not consider it to be a form of ‘fair and adequate disclosure’ to put the onus on consumers to obtain further details which, by statute, are required to be disclosed by the advertiser. Similarly, a contest advertised in the media should not require that a consumer visit or patronize any particular retail outlet of the advertiser, or one of its franchises, or a dealer handling only its product, in order to become adequately and fairly informed of the information required by the provision.”
(Competition Bureau,
Promotional Contests Enforcement Guidelines)
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“A promotional contest is any contest, lottery, game of chance or skill, or mixed chance and skill, or if you’re otherwise disposing of a product or other benefit by any mode of chance, skill, or mixed chance and skill.
If you run a contest to promote a product or business interest, be sure to disclose all of the information required under the section 74.06 of the Competition Act. That information includes: the number and approximate value of prizes; the area or areas where the prizes relate; and any important information relating to the chances of winning.
In addition, to be compliant with the Act, you must ensure that the distribution of prizes is not unduly delayed, and that the participants are selected, or prizes distributed either randomly or on the basis of skill.
It is also important to ensure that your contest is lawful under other federal statutes such as the Criminal Code, relevant provincial statutes and local by-laws.”
(Competition Bureau,
Promotional Contests)
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OVERVIEW OF SHORT CONTEST RULES (MINI-RULES)
Canada’s federal Competition Act requires that certain disclosures be made when conducting “any contest, lottery, game of chance or skill, or mixed chance and skill, or otherwise [disposing] of any product or other benefit …”
This includes disclosing the number and approximate value of prizes, the area (or areas) to which prizes relate and any fact that may materially affect the odds of winning a prize (section 74.06 of the Competition Act). The Competition Act also prohibits contest organizers from “unduly delaying” the award of prizes.
Canada’s federal Competition Bureau has also issued Enforcement Guidelines setting out its recommendations for the disclosures that contest sponsors in Canada should include in any point-of-purchase marketing and anywhere else that contest entrants first see a contest promoted (e.g., online contest entry landing pages and social media marketing) (see: Competition Bureau, Promotional Contests Enforcement Guidelines (Section 74.06 of the Competition Act).
Based on these requirements, contest sponsors running promotional contests in Canada typically provide short rules (i.e., mini rules with mandatory statutory disclosures) in all point-of-purchase materials regardless of media (i.e., in all print, online and other electronic media) with a full version of the contest rules (i.e., long rules) available (commonly posted on the sponsor’s online contest landing page).
Point-of-purchase disclosures (i.e., the short rules or “mini rules”) commonly includes both the required statutory Competition Act disclosures, Competition Bureau’s recommended disclosures and any other material terms of the contest that should be disclosed to entrants upfront before they enter the contest.
While short, and usually straightforward, it is important that short contest rules be drafted precisely and correctly. It is also important that the timing for the launch of a contest and accompanying promotional materials ensure that the necessary disclosures are included in all point-of-purchase and similar marketing materials where entrants first see a contest promoted (e.g., online contest entry pages and in social media marketing).
For more information, see: Canadian Contest Law Forms and Precedents.
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CANADIAN CONTEST & ADVERTISING LAW SERVICES
We are a Toronto based competition and advertising law firm that offers business and individual clients efficient and strategic advice in relation to Canadian competition and advertising laws, including contests/sweepstakes and other types of promotions. Our experience includes advising Canadian and U.S. clients in relation to Canadian contest/sweepstakes, advertising/marketing and competition/antitrust laws.
For more about our contest/advertising law services see: here
To contact us for Canadian contest or advertising law advice see: here
For more information about our firm, visit our website: Competitionlawyer.ca