Can a prize promotion be run where there is an element of chance in the selection of the winner?
Subject to compliance with other requirements (see Other local requirements section), advertisers are allowed to organize a promotional game of chance where the entrant wins a free gift(s) (e.g. prize draw, sweepstake).
In instances where the total value of prizes (or a prize if there is only one prize) to be won is equal to or exceeds € 4,500 (approx. US$5,000) but does not exceed € 100,000 (approx. US$112,000), a prize draw may be organized once per year per product, service, brands or company, provided that:
- Participants do not pay to enter;
- That terms and conditions are in accordance with the Code of Conduct; and
- The marketing and terms and conditions are not misleading, incomplete or give rise to false expectations.
Also, rules apply regarding the amount of actual draws for each promotion i.e. the number of occasions per year when winners can be selected.
In instances where the total value of prizes (or a prize if there is only one prize) to be won is below € 4,500 per year, there is no limit to the amount of prize draws that may be organized (although rules apply regarding the organization and marketing of the prize draw).
Prize draws where the total value of prizes (or a prize if there is only one prize) exceed € 100,000 (approx. US$) are not allowed.