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 Law Forms/Precedents.
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OVERVIEW OF DECEPTIVE PRIZE NOTICES
UNDER THE COMPETITION ACT
“… I want to talk about deceptive practices. The amendment to prohibit deceptive prize notice addresses unscrupulous promoters who mislead their victims into believing they have won a prize without disclosing the excessive costs associated with collecting the prize. The Commissioner has testified that this is a growing problem in Canada and the Bureau, quite literally, receives thousands of complaints each year.”
(former Minister of Industry, Brian Tobin,
remarks to House of Commons)
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In addition to general civil and criminal misleading advertising provisions (sections 52 and 74.01), the Competition Act also contains a number of other provisions that prohibit or regulate specific types of advertising and marketing practices.
These include provisions relating to bait and switch selling (section 74.04), deceptive telemarketing (section 52.1), double ticketing (section 54), drip pricing (sections 52(1.3) and 74.01(1.1)), misleading or unauthorized use of tests and testimonials (section 74.02), multi-level marketing (section 55), ordinary selling price (OSP) claims (sections 74.01(2),(3)), performance claims (sections 74.01(1)(b)-(b.2)), promotional contests (section 74.06), pyramid selling schemes (section 55.1) and sale of products above advertised price (section 74.05).
In addition, the Competition Act also contains a criminal deceptive prize notice offence (section 53), which was enacted in 2002 to address a significant number of deceptive prize notice complaints that the Competition Bureau was receiving.
Section 53 prohibits prize notices sent by electronic or regular mail that give the general impression that a recipient has won (or will win) a prize and requires a payment (or incurring another cost) unless the recipient actually wins the prize or benefit and certain disclosure and other requirements are satisfied by the sender.
The disclosure requirements include adequate and fair disclosure of the number and approximate value of prizes, regional allocation of prizes and any fact within the sender’s knowledge that materially affects the chances of winning (i.e., odds of winning).
In addition, the distribution of prizes cannot be unreasonably delayed and there are requirements for the selection of participants and distribution of prizes.
The Competition Bureau has issued guidance for complying with the deceptive prize notice provisions of the Competition Act. See: Deceptive Prize Notices and Deceptive Notices of Winning a Prize Enforcement Guidelines.
POTENTIAL PENALTIES
The potential penalties for violating section 53 are fines, on summary conviction, of up to $200,000 and/or imprisonment for up to one year and, on indictment, fines in the discretion of the court (i.e., with no prescribe limit) and/or imprisonment for up to 14 years.
Several due diligence defences are available under this offence.
CANADIAN CONTEST LAW RESOURCES
For more information about Canadian contest law, see: Contests, Contests and CASL, Contests and Quebec, Contest Law FAQs, Contests and Social Media and Contest Law Tips.
Visit our Canadian contest law blog: Canadian Contest & Promotions Law.
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SERVICES AND CONTACT
We are a Toronto based Canadian competition and advertising law firm that helps clients in Toronto, Canada and the United States practically navigate Canada’s advertising and marketing laws and offers Canadian advertising/marketing law services in relation to print, online, new media, social media and e-mail marketing.
Our Canadian advertising/marketing law services include advice in relation to anti-spam legislation (CASL), Competition Bureau complaints, the general misleading advertising provisions of the federal Competition Act, Internet, new media and social media advertising and marketing, promotional contests (sweepstakes) and sales and promotions. We also provide advice relating to specific types of advertising issues, including performance claims, testimonials, disclaimers, drip pricing, astroturfing and native advertising.
For more information about our services, see: services
To contact us about a potential legal matter, see: contact
For more information about our firm, visit our website: Competitionlawyer.ca
