Can a prize promotion be run where there is an element of chance in the selection of the winner?
Yes. In this case, the promotion will fall under the definition of 'lottery' (which is regulated differently and separately from skills-based competitions). The main requirements set out in the Code and in the Law are:
- A lottery conducted in Russia must adhere to certain formal requirements and must be registered as such;
- The terms of the lottery must contain the timeframes of conducting the lottery, order of determining the award and its amount and other formal requirements;
- If the timing for payment of the award is not indicated, the award must be paid out not later than 10 days commencing on the date of determination of the results of the lottery (general rule). In case of non-payment the participants may claim the redress of damages in full amount from the organizer.
The refusal to conduct the lottery in the pre-agreed term will give the participants the right to demand the pay out of damages (only real damages, not lost profit).