Unduly delayed (Canadian contest law term).
Section 74.06 of the federal Competition Act, which requires contest sponsors to provide adequate and fair disclosure of certain information relating to promotional contests, also provides that distribution of prizes cannot be “unduly delayed”. “Unduly delayed” is not defined in the Competition Act. The Competition Bureau also does not take a position as to what “unduly delayed” means in its Promotional Contests Enforcement Guidelines. In one case under the predecessor section to 74.06, Popsicle Industries was convicted for a Popsicle Points promotion in which Popsicle ran out of Nintendo game prizes.
Unsubscribe mechanism (Canadian anti-spam law (CASL)).
In addition to consent and identification requirements, Canada’s federal anti-spam legislation (CASL) also requires that commercial electronic messages (CEMs) include an easy unsubscribe mechanism. The specific requirements for a CASL-compliant unsubscribe include: (i) CEMs must include an unsubscribe mechanism; (ii) the unsubscribe mechanism must be set out clearly and prominently; (iii) the unsubscribe mechanism specifies and electronic address or web link where the unsubscribe request can be made (links must be valid for a minimum of 60 days after the message is sent); (iv) for SMS messages, users can choose between replying “STOP” or “Unsubscribe” or by clicking a link to a web page to unsubscribe from some or all messages; (v) recipients can unsubscribe by clicking a link or via a web page where they are given options for unsubscribing from some or all messages; (vi) recipients that request to be unsubscribed are unsubscribed within 10 business days; and (vii) the unsubscribe mechanism can be readily performed and is simple, quick and easy.
For more information about CASL, see: CASL (Anti-spam Law), CASL Compliance, CASL Compliance Errors, CASL Compliance Tips and Contests and CASL.
For information about the CASL compliance checklists and precedents that we offer for sale, see: CASL Compliance Checklists and Precedents.
Urgency cues (advertising/marketing law).
Competition Bureau, The Deceptive Marketing Practices Digest – Volume 6 (April 17, 2023): “Fake scarcity cues online. The urgency is fake, but the deception is real. You’re shopping online and a product catches your eye. But what’s this? A pop-up informs you there are only two left! Worse yet, 15 people are looking at the very same item right now! Your heart starts to race, you know you need to act fast if you don’t want to miss out on this deal. You rush to enter your credit card details and experience a sense of relief when the purchase is complete.
This scenario plays out daily for consumers in the digital economy, and it is an example of the power and influence of what are called “scarcity cues” online. Scarcity cues are representations, or claims, that suggest low availability of a product or service, effectively signaling to consumers that they must act fast before the offer is gone. Such claims can induce consumers to make an impulsive or relatively uninformed decision to quickly grab a great deal before someone else beats them to it.
Businesses can also add so-called social proof tactics to the mix, using various methods to let consumers know that other consumers like or want the same product. Social proof can be used to suggest there is high demand for a product and/or that the product is highly attractive or desirable. The sense of urgency is compounded when a consumer believes a product is both scarce and in high demand.”
See also, Scarcity Cues.
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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
