Promoters must conduct prize promotions fairly and efficiently, and must 'avoid causing unnecessary disappointment', e.g. by changing the terms (to be avoided if at all possible) or stopping the promotion.
Significant conditions, or information which, if omitted, is likely to mislead, must be included on all marketing communications regarding the promotion. Examples of significant conditions include: restrictions on entry (e.g. age, geographical), how to participate, costs of participating, start and close dates, proof of purchase requirements, details of prizes, IP assignment, any post-event publicity requirement.
Note: Where there are space limitations e.g. Twitter or banner ads, you must communicate as much information as possible and direct the entrant to where all significant terms are stated.
A promoter's name and address must be stated unless it is obvious from the context.
The CPRs (which carry potential criminal liability for breach) specifically prohibit claiming to offer a prize without awarding it, and creating a false impression that a consumer has won a prize.
Promoters should be mindful of the extensive obligations (and hugely significant sanctions- see Penalties for Non-Compliance section) now imposed by GDPR, which can impact on prize promotions in various ways, such as:
- If a promoter wishes to use winners’ or entrants’ personal data (e.g. photographs) for publicity or other purposes beyond simply administering the promotion, it must carefully consider what lawful basis it can rely on under GDPR. Consent may not be an appropriate basis unless it can be refused (GDPR requires "unbundled" consent so it cannot generally be a condition of entry); legitimate interests may be appropriate, but this requires an assessment to be undertaken of the competing interests;
- GDPR-compliant data processing notices must be given to entrants;
- It is not permitted to run a consumer-targeted prize promotion that requires as a condition of entry that the consumer agrees to receive electronic direct marketing from the promoter;
- Particular care must be taken where child data is to be processed.
Last modified 31 Mar 2019