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 for running 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 or to order see: Canadian Contest Law Forms/Precedents.
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CANADIAN CONTEST LAW TIPS
The following is a list of key tips for safely (i.e., legally) and successfully running a contest in Canada:
Criminal Code. Avoid the Criminal Code illegal lottery offences (e.g., provide a “no purchase necessary” entry option and skill element, such as a time-limited, multiple-step mathematical question).
Short Rules. Include short rules / mini-rules including all of the required Competition Act disclosure requirements for point-of-purchase materials (e.g., print and in-store marketing, social media and Internet sites, packaging and labeling, television spots, etc.).
Long Rules. Ensure that precise long rules are prepared that reflect the details of the contest, cover potential contingencies (e.g., technical problems) and that set out the details of the promotion as clearly as possible – for example, eligibility requirements; how to enter; prize descriptions, number and values; draws and award of prizes; odds of winning; and indemnity and releases. Standard precedents, or rules downloaded from the web rarely accurately reflect a particular promotion. Like all law, counsel should not only understand what each provision means, but all rules should be relevant to the particular promotion. In this regard, contests are contracts, and so if you as a promoter want to rely on the rules in the event of an issue, they should be as accurate, clear and precise as possible.
Winner Release Forms. Consider using winner release forms for contest winners. While not required by law in Canada, winner releases are commonly used by contest sponsors to have winners confirm that they have complied with all contest rules and to release the sponsor from legal liability. Signing and returning winner releases is also commonly included in contest rules as a condition of prize award. Winner releases are particularly important for contests in which there may be higher risk (e.g., where the contest involves high value prizes or a trip prize). For trip contests, sponsors are generally advised to use releases for both the winners and any travel companions (and guardian releases for minors).
Misleading Advertising. Ensure that none of the advertising or marketing materials are generally false or misleading (i.e., comply with the “general misleading advertising” sections of the Competition Act). In this regard, contests in Canada must comply not only with stand-alone contest provisions of the Competition Act (under section 74.06), but also with the general misleading advertising sections of the Competition Act.
CASL (Canadian Federal Anti-Spam Law). Comply with Canadian federal anti-spam legislation. Canada’s federal anti-spam legislation (CASL) is often relevant when running contests in Canada, including if electronic distribution lists will be used to market the contest, the contest will include the collection of e-mails for marketing unrelated to administration of the contest, if entrants’ e-mail addresses will be shared with third parties (e.g., related entities or affiliate marketers) or entrants can “share” the contest with friends or family for additional entries. Given the potentially severe penalties for violating CASL, which include administrative penalties of up to CDN $10 million, it is important for contest sponsors to ensure that they comply with CASL for electronic marketing related to promotional contests open to Canadians. For more information about contests and CASL, see: Contest Law and CASL and CASL Compliance Errors. For CASL checklists and precedents that we offer for sale, see: CASL Checklists and Precedents.
Quebec Contest Law. On October 27, 2023, the province of Quebec made significant changes to its rules relating to publicity contests open to Quebec residents. In this regard, it repealed the provisions of the Act respecting lotteries, publicity contests, and amusement machines relating to publicity contests and repealed its former rules regarding publicity contests. As such, sponsors of contests open to Quebec residents no longer must formally file their contests with the Régie des alcools, des courses et des jeux (Régie) or pay duty (essentially a fee) to the Régie based on the value of contest prizes, file a winners report at the end of a contest or post security in Quebec, where which was formerly required in some cases. Other requirements applying to publicity contests run in Quebec were also eliminated, including the necessity to include specific Quebec-related disclosure language in contest rules and seek permission for contest modifications after launch.
Intellectual Property Consents. Consider whether consents are needed (and if necessary obtained) to reproduce third party intellectual property – for example, trade-marks, logos, etc. – or to transfer ownership in contest materials – for example, where contestants create original material as part of the contest or promotion. Contest rules in Canada commonly include rights (e.g., a licence) for the sponsor to use information and content contributed by entrants and if entrants will be contributing original content (e.g., photographs, essays, etc.). It is also a good practice for sponsors to include guidelines relating to their rights to use (or reject) any entrant contributed content (e.g., submission guidelines for entrant generated content into the contest).
U.S. Advice. Seek U.S. legal advice if the contest will be open to U.S. residents (or limit the contest to Canada).
Social Media Site Rules. Comply with social media sites’ terms of use if using social media to promote or host a contest (e.g., Facebook’s Promotions Rules).
Other Competition Law & Advertising Law Rules. Consider whether other competition or advertising law rules may apply. For example, in addition to a stand-alone contest provision, the Competition Act also contains provisions governing deceptive prize notices, general misleading advertising and telemarketing that involves prizes.
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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