Because the improper conduct of a promotional contest may result in civil or criminal liability, it is important to review the contests offered to ensure they comply with major federal and state laws. Some common errors related to the contest rules I see are: terms that are not relevant to a particular promotion; U.S. or international rules used for Canadian competitions; challenges that purport to apply to many jurisdictions where it is not clear that the rules have been revised for the laws of other countries or Quebec; and contests are conducted without rules (or rules that do not meet Canadian requirements). Other laws and rules that may apply depending on the type of contest or sweepstakes include privacy laws (p. e.g., regarding the collection and use of participant information), CASL (anti-spam legislation) (e.g., if entrants` emails are collected for further marketing by the sponsor), intellectual property rights (e.g., when using 3rd party trademarks, names, logos or other content) and the social media platform`s terms of use (e.g., if a contest is promoted on Facebook, Twitter, Instagram, YouTube or TikTok). When deciding whether or not to include minors in your contest advertising, several considerations come into play. Persons under the age of majority are subject to a patchwork of different laws and regulations that may affect the nature of your contest. These provisions apply: Holding a contest, giveaway or sweepstakes in Canada requires you to comply with all promotional contest rules that govern this type of activity. Failure to comply with these rules can result in significant penalties, including hefty fines imposed on you or your business by the Canadian government.

Given the potential risk under section 206 of the Criminal Code, promoters in Canada generally offer a no-purchase entry option (sometimes referred to as an „alternative entry method” or „OMAO”) to avoid an illegal lottery contest or sweepstakes and require potential winners to answer a math test question. These requirements are generally intended to remove some of the possibility from pure skill competitions and eliminate the underperformance element, both of which may contravene the Canadian Federal Criminal Code. Do not infringe 3rd party intellectual property. Determine whether consent is required and, if so, obtained to reproduce the intellectual property of Part 3 – for example, trademarks, logos, photos, etc. It is also advisable to ensure that the Contest/Sweepstakes rules and the release of winners give the Sponsor all rights to reproduce and use any Entrant`s materials that may be subject to intellectual property rights (e.g., photographs or essays in skill contests). Are there other sections of the Competition Act that apply to contests and sweepstakes? Sponsors of contests or sweepstakes in Canada must ensure that they meet the basic requirements of CASL (Canada`s Anti-Spam Legislation). This is becoming more and more of a problem in competitions. Point-of-sale disclosure generally includes the number and approximate value of prizes, regional allocation, eligibility test requirements, odds of winning and contest end date.

However, what must be disclosed in the short rules depends on the nature of the contest/sweepstakes and what may be essential for potential entrants. This generally includes advice to entrants on how their personal information will be used (e.g., wording in the short rules that entrants` information may be used for marketing purposes) and the contest or sweepstakes sponsor`s practices and policies regarding the security (and destruction) of entrants` personal information after the conclusion of a contest (e.g., linking to the sponsor`s privacy policy in the Competition Rules). Promotional contests in Canada (commonly referred to as „sweepstakes” in the United States) are primarily governed by the federal Competition Act, section 206 of the federal Criminal Code and contract law. 7 Things to Know About Sweepstakes and Contests in Employee Incentive Programs For example, contest sponsors/sweepstakes typically include language in their contest rules and prize release forms that gives them the right to use participant information, images, contest entries, etc. in marketing. These are the 3 laws that govern contests/sweepstakes in Canada. Have good long periods. Make sure the long and accurate rules reflect the details of the contest, cover potential contingencies (e.g. technical issues) and state the details of the contest/sweepstakes as clearly as possible – for example.

Conditions of participation; how to participate; price descriptions, quantity and values; raffles and awards ceremony; Odds; and compensation and release. Precedents or standard rules uploaded from the Internet rarely accurately reflect a particular promotion. As with all laws, the lawyer must not only understand what each rule means, but all the rules must be relevant to the particular promotion. In this regard, contests are contracts, and if a contest/sweepstakes sponsor wants to rely on the rules in case something goes wrong, the rules should cover the main potential issues and reflect the particular competition as closely as possible. Under the disclosure requirements of the Competition Act, most contest or sweepstakes sponsors provide short rules or mini-rules in marketing materials (often referred to as „short rules”). Full contest/sweepstakes rules (i.e. long rules) are usually linked to short rules or made available to entrants for personal promotions. What laws govern publicity contests (i.e. sweepstakes) in Canada? To help you launch your own promotion the right way, we`ve put together a step-by-step guide to Canadian competition rules.

We have also highlighted special rules, exceptions and other international laws that may apply to you. A growing risk is the violation of CASL (Canada`s anti-spam legislation), where promotions collect emails from participants for future marketing without complying with CASL`s consent, identification and opt-out requirements. While it is increasingly common for contest or sweepstakes sponsors to want to use a contest to create a marketing list (which is usually perfectly legitimate), it is very important that CASL`s key requirements are met in the process. Other potential penalties and risks related to running a contest/sweepstakes without complying with relevant laws and rules include intellectual property rights disputes (e.g., if a sponsor uses trademarks, names, images, or other 3rd party content without consent) or removals from social media platforms if the platform`s terms of use for ongoing contests are not met. In this regard, the main social media platforms (e.g. Facebook, Instagram and Twitter) have specific terms of use for the organisation of competitions and other promotions. Under the Criminal Code, which prohibits illegal lotteries under section 206, sponsors of contests or sweepstakes in Canada often remove the matching element (e.g., offering a „no purchase required” or „AJOE” participation option), the random element (e.g. e.g., by adding an element of skill, such as making the competition a skill contest or including a skill question). Make sure Creative isn`t fake or misleading. It is important to ensure that no advertising or marketing material (i.e., „creatives”) is generally false or misleading (i.e., complies with the „general misleading advertising” sections of the Competition Act). In this regard, competitions in Canada must comply not only with the separate competition provisions of the Competition Act (as defined in section 74.06), but also with the general misleading advertising sections of the Competition Act.

In practice, legal counsel should review the design of creative materials before launching a competition or draw. Sponsors of contests or sweepstakes in Canada must ensure that they own the intellectual property in connection with a promotion or have consent to use the intellectual property. This may include names, logos, trademarks, photos, graphics and contributions of entrants to the content themselves (e.g., essay, photo or other skill-contest entries). A contest can be a fun way to extend the reach of your products and services to your target audience.