CANADIAN 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 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. If you would like to discuss legal advice in relation to your contest or other promotion, contact us: Contact.
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I’ve been doing more social media contests lately (i.e., Facebook and Twitter contests). If anything, it’s been another reminder that “one size fits all” does not work for contest rules using social media.
In this regard, one of the first questions I typically ask clients operating promotional contests in Canada, even before what their promotion is all about, is how they plan to market it (e.g., retail outlets, packaging, web, radio/tv or what is invariably the answer – web plus social media – Facebook and Twitter).
I say that one size does not fit all for social media based promotions because as many, but certainly not as I’ve learned all marketers or agencies know, each of the many social media sites have their own terms of use, many with specific rules for contests and other similar types of promotions.
I’ve written on and summarized some of the specific and most important Facebook and other social media contest related rules – see: here, here, here and here.
If you’re planning to run a web-based contest using Twitter in particular – for example, where entrants follow your company or brand on Twitter, must Tweet brand or company names using certain hashtags, etc. – then Twitter has contest and promotions rules as well (that Twitter calls “Guidelines for Contests on Twitter”).
Perhaps not surprisingly, given that there is little room for including contest rules in only 140 characters or less, Twitter’s contest guidelines are largely overall aimed at reducing the likelihood of spam or deception in contests using the micro-blogging site.
So, to maintain entrant goodwill (i.e., reduce the likelihood an annoyed Twitter will penalize your brands’ potential customers) and reduce that chances that Twitter will take steps against your account that may impact your latest promotion, the following are a few Twitter rules of the contest road so to speak to keep in mind:
1. Twitter discourages the creation of multiple accounts by users to enter a contest multiple times (and recommends including a contest rule stating that anyone found to use multiple accounts to enter will be ineligible).
2. The Twitter contest rules point out that posting duplicate or near duplicate links violates Twitter’s rules (apparently aimed at Tweeting contests and similar spam-type competitions – e.g., “whoever retweets this the most wins”). Apparently marketing a brand or promotion is a-OK on Twitter, but spam not so much. Twitter recommends including a contest rule that multiple entries in a single day will not be accepted.
3. Twitter also recommends against using unrelated hashtags (i.e., the ubiquitous and search-engine-friendly “#”). According to Twitter, “encouraging users to add your hashtag to totally unrelated updates might cause them to violate the Twitter Rules”.
Also, using Twitter or other social media (i.e., as opposed to some more conventional types of entrant participation and entry) raise some other types of issues that may need to be considered.
These include how to contact winners (through Twitter if no other entries are collected?), how long to try and contact potential winners that may have slipped away in the social media universe (one option being to state in the rules that attempts will only be made for a specified time, such as 36 hours) and beefing up the usual “boilerplate” contest rule sections dealing with spam, gaming and technical glitches. For example, anticipating situations where Twitter may discipline an entrant that thought they had successfully entered, where Twitter messages may not be locatable or entrants attempt to “game the game” so to speak by creating multiple accounts, sending multiple Twitter messages from a single account, etc.
Of course, as with all promotions, the likelihood that entrants will attempt to game the game will in many cases turn on the value of the prize (i.e., how strong the incentive to cheat).
It’s also a good idea to make sure that these basic spam-related Twitter rules are also reflected in your contest rules (along with language covering Facebook’s promotions rules if your running or promoting your contest using Facebook, and any other relevant social media terms of use).
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KEY LEGAL TIPS FOR RUNNING
A PROMOTIONAL CONTEST IN CANADA
The following are some key legal tips for operating a successful and legal contest in Canada:
CRIMINAL CODE
Avoid the illegal lottery offences of the Criminal Code (e.g., include a bona fide “no purchase necessary” entry option and skill element, such as a time-limited, multiple-step mathematical question for potential winners as a condition of awarding prizes).
SHORT RULES (MINI RULES)
Include short rules / mini rules with 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 and radio spots, etc.).
For more information, see: Canadian Contest Law Forms/Precedents.
LONG RULES (OFFICIAL RULES)
Ensure that precise long rules (i.e., the official contest rules) are included that reflect the details of the contest, anticipate potential contingencies (e.g., technical problems) and set out the terms of the contest as clearly as possible – for example, eligibility requirements, how to enter, prize descriptions, number and value of prizes, draws and award of prizes, odds of winning and indemnifying and releasing the contest sponsor and any co-sponsors or prize sponsors.
Contests are contracts, and so they should be as accurate, clear and precise as possible in the event issues arise.
For more information, see: Canadian Contest Law Forms/Precedents.
WINNER RELEASE FORMS
Consider using winner release forms for contest winners.
While not required by law in Canada, winner release forms are almost always used by contest sponsors to have winners confirm that they have complied with all contest rules and release the sponsor from legal liability. Signing and returning winner releases is also commonly included in contest rules as a condition of awarding a prize.
Winner release forms 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 winner releases for both winners and any travel companions (and guardian releases for any minor companions).
For more information, see: Canadian Contest Law Forms/Precedents.
FALSE OR MISLEADING ADVERTISING
Ensure that advertising and marketing materials are not false or misleading (i.e., comply with the general civil and criminal misleading advertising sections of the Competition Act, under sections 74.01 and 52).
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.
It is particularly important to ensure that the marketing materials also match the contest rules and that all material aspects of the contest (e.g., number and type of prizes, prize values, how to enter and win and any conditions/limitations) are accurately described in the short rules, long rules and marketing materials.
CANADIAN FEDERAL ANTI-SPAM LAW (CASL)
Comply with Canada’s federal anti-spam legislation (CASL).
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 are either required or incentivized (e.g., through additional entries) to “share” the contest with friends or family.
Given the potentially severe penalties for violating CASL, which include AMPs of up to CDN $10 million, it is very important for contest sponsors to ensure that they comply with CASL for any electronic marketing related to promotional contests open to Canadians.
For more information about contests and CASL, see: Contests and CASL and CASL Compliance Errors.
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CASL Compliance Checklists and Precedents: For information about the CASL compliance checklists and precedents we offer, see: CASL Compliance Checklists and Precedents.
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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.
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.
For more information, see: Guidelines for Consumer Generated Content Contests.
U.S. LEGAL ADVICE IF OPEN IN THE U.S.
Obtain U.S. legal advice if the contest will be open to U.S. residents or limit the contest to only Canadian residents.
SOCIAL MEDIA PLATFORM 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).
Also ensure that appropriate disclosures are made in all social media marketing (i.e., include short rules).
For more information, see: Contests and Social Media.
OTHER COMPETITION LAW
AND ADVERTISING LAW RULES
Consider whether other competition or advertising law rules may apply to a contest. For example, in addition to the stand-alone contest provision (section 74.06), the Competition Act also contains provisions governing deceptive prize notices, general misleading advertising (sections 52 and 74.01) and telemarketing that involves prizes.
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SERVICES AND CONTACT
We are a Toronto based Canadian competition law and advertising law firm who helps clients in Toronto, across 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
