I get asked from time to time to provide advice on the legal requirements of running a promotional contest. While familiar with most of the legal requirements for running a contest in Canada (outside of Quebec), I encourage clients to seek advice from their lawyer to ensure the promotion they are planning doesn't contravene the Competition Act nor the Criminal Code. Infringement of either of these can be very costly - in terms of fines and reputation of your company.
To assist you in the planning of your next promotion that includes prizing, following are some resource sites you can reference.
1. Competition Bureau Pamphlet on Promotional Contests: http://bit.ly/csYaYj
2. Competition Bureau current summary of requirements including purchase requirements: http://bit.ly/akqfXR
3. Norton Stewart blog outlining recent infringements of rules by marketers and interpretation of requirements:http://bit.ly/9akF51
4. Canadian Marketing Association offers seminars and guidelines for members on running promotional contests: http://www.the-cma.org/?WCE=C=47|K=225856.
The purpose of running of contest is to generate increased sales, generate new customer leads, and engage consumers with your brand. But ensuring it meets the legal requirements and doesn't mislead consumers is a critical part of the planning process.
If you can recommend other resources or can share your experience, post a comment on our blog.
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