Browse topics

  • Governing law
    Name Law or Code?

    The Civil and Commercial Code of the Argentine Republic ('CC Code')

    Code

    The Commercial Loyalty Law (Law number 22,802 as amended)

    Law

    Customers' Protection Law (Law number 24,240 as amended)

    Law

    Personal Data Protection Law (Law number 25,326 as amended)

    Law
    Decree 961/2017 and Resolution 915/2017 (of the Secretariat of Commerce modified the regulations of the conditions for those who organizse or promote contests, draws and sweepstakes with the aim of simplifying certain formalities)

    Law

    Note: Prize promotions regulations in Argentina are the responsibility of each province. Argentina is subdivided into twenty-three provinces (provincias) and one autonomous city, the City of Buenos Aires.  Even though the provinces and the City of Buenos Aires exist under a federal system, they have their own constitutions, and local regulations. Organisers/sponsors must be aware of the applicable legislation for the provinces included within the territory.

    Last modified 8 Jan 2019

  • Extra-territoriality

    Yes. Even when a chance-based game or skill-based contest is solely online and no promotion takes place in Argentina, if it is open to Argentinean residents, it will be subject to the laws of our countrArgentinay. As a consequence, national regulators might enforce rules against organiszers/companies operating abroad.

    Last modified 8 Jan 2019

  • Skills competitions

    Yes, but ensure that:

    • The purchase of a product or service is not a requirement in order to be able to participate in the promotion; the elements required to enable a person to participate should be made available for free to anybody willing to participate;

    • No element of chance should be used to determine the winner of the promotion;

    • The Rules are available in Spanish; and

    • You disclose information regarding prizes, territorial scope and participation requirements.

    Last modified 8 Jan 2019

  • Prize draws

    Yes, but ensure that the purchase of a product or service is not a requirement in order to be able to participate in the promotion. The elements needed to enable a person to participate must be made available for free to anybody willing to participate.

    Last modified 8 Jan 2019

  • Selection of winners

    The terms and conditions of the promotion must be made available to the public and the process through which the winners shall be determined needs to be clearly established, including dates and place where the process will take place. It is suggested that the process be supervised by a Notary Public.

    If the awards are to be determined by chance, the mathematic adjudication used to determine the winner needs to be provided; if this is not possible, an approximate estimation of it needs to be provided.

    The names of the winners shall be published within ten (10) days, counted from the end of the promotion, by the same media used to promote the contest/promotion.

    The terms and conditions should indicate date and place where the prizes will be delivered.

    Last modified 8 Jan 2019

  • Judges

    There are no legal requirements in relation to judges and judging in skill competitions. However, the judging criteria should be clearly stated within the Rules and it´s advisable to include the list of judges.

    Last modified 8 Jan 2019

  • Prizes

    Prizes awarded must be as described in their marketing communications, or reasonably equivalent to the description.

    No forbidden and/or illegal goods should be awarded as prizes.

    Last modified 8 Jan 2019

  • Registration requirements and fees

    Note that in February 2018, the government of Argentina dissolved the National Lottery (LNSE). As a result, at least for now, Argentina no longer requires sweepstakes and contests to be registered. Prior to the dissolution, only promotions/contests in which the winners were totally or partially determined by chance – involving prizes greater than  6,666 Pesos (approx. US$148) – needed to be registered with LNSE and had to meet all the applicable requirements.

    With regard to skill-based contests, they do not require registration. However, the Official Rules must conform to local law. When a prize is awarded to a winner selected by chance a 31% special tax is levied. If the prize is cash, the entity awarding it must withhold and pay for the tax. If the prizes are goods the beneficiary must provide the entity awarding the prize the amount of money requested to pay for the special tax. Specific provincial taxes may apply in different jurisdictions.

    Last modified 8 Jan 2019

  • Other local requirements

    Promoters must provide certain and detailed information in relation to the prize promotion, including the essential characteristics of the prizes offered, and any other relevant terms.

    Conditions expressed in advertisements, brochures, circular letters or any other media are considered to be included in the contract concluded with the consumer, as binding terms.

    In such respect, Organiszers must comply with the requirements as established by Decree 961/2017 and Resolution 915/2017 of the Secretariat of Commerce.

    Last modified 8 Jan 2019

  • Timing

    For chance-based promotions, time is required to request the permit from the Provinces that regulate contests/promotions at a local level. Time and costs involved may vary depending on the Province.

    Note that Provinces regulating promotions/sweepstakes at a local level can be excluded in order to avoid compliance with local regulations.

    Last modified 8 Jan 2019

  • Translations

    Yes, the terms and conditions must be provided in Spanish.

    Last modified 8 Jan 2019

  • Penalties for non-compliance

    According to the Commercial Loyalty Law, the penalties for non-compliance are the following:

    • Fines from AR$500 (approximately US$11) to AR$ 5,000,000 (approx. US$111.000);

    • Suspension for up to 5 years from the providers registries that allow promoters to conclude contracts with the State;

    • Loss of concessions, tax or special credit benefits;

    • Closure of the facility for up to 30 days.

    According to the severity of the breach, and if it is convenient, publication of a notice of the penalty in the same media may occur.

    In case of fraud, criminal actions may be initiated.

    Last modified 8 Jan 2019

  • Restrictiveness of regulations

    Due to the recent dissolution of the National Lottery there are only a few restrictions on prize promotions in Argentine national regulations. However, as previously mentioned, some provinces like Mendoza, Córdoba, Salta, Neuquén and Tierra del Fuego have their own local regulations. In addition, forbidden acts under the Competence Defense Law must be avoided. Advertisements that contain false indications, lead or could lead to mistake and/or are abusive, discriminatory, or lead the consumer to behave in a dangerous or harmful way, must be avoided as well.

    Last modified 8 Jan 2019

  • Regularity of sanctions

    Fines and prison sentences are rarely imposed.

    Generally, in cases of breach, a complaint is submitted to the Consumer's Defense Office, where a monetary sanction can be applied to the non-compliant entity, and it can also be requested that the misleading advertisement be deleted.

    Last modified 8 Jan 2019

  • Key contacts
    Ignacio J. Randle
    Ignacio J. Randle
    Partner Estudio Randle [email protected] T +54 11 5252 0700
    Alejandro M. Massot
    Alejandro M. Massot
    Partner Estudio Randle [email protected] T +54 11 5252 0700

Selection of winners

Are there any requirements for the selection of winners and award of prizes?

Argentina

Argentina

The terms and conditions of the promotion must be made available to the public and the process through which the winners shall be determined needs to be clearly established, including dates and place where the process will take place. It is suggested that the process be supervised by a Notary Public.

If the awards are to be determined by chance, the mathematic adjudication used to determine the winner needs to be provided; if this is not possible, an approximate estimation of it needs to be provided.

The names of the winners shall be published within ten (10) days, counted from the end of the promotion, by the same media used to promote the contest/promotion.

The terms and conditions should indicate date and place where the prizes will be delivered.

Australia

Australia

There are slightly different requirements in different States and Territories. We have considered these different requirements for each State and Territory and prepared below a high watermark list of the requirements. There are also a small number of requirements which are specific to certain States and Territories and these follow at the end of the common high watermark requirements.

Conduct of draw

The draw must occur within 12 months of the issue date of the permit unless approval has been provided by the relevant authority.

The determination of the winner must be undertaken in a transparent manner with each participant having an equal chance of winning the competition.

If more than one prize is being determined at a draw, the major prize must be drawn first unless winning entries of lesser prizes are eligible to be redrawn.

Winning must not be contingent on the participant being present at the drawing of the lottery except for lucky-badge draws. It is acceptable to offer bonus prizes if the winner is present as long as the bonus prize does not exceed the value of the base or initial prize.

Where a computerized system is used to decide the winners of prizes (including a device used in connection with a 190-telephone service, an SMS telephone facility, an MMS telephone facility or the Internet) the permit holder must obtain two reports:

  1. Appraisal Report; and

  2. Draw Procedure Report.

For trade promotion lotteries involving instant win prizes, additional conditions are required to be met, including printing and lodging requirements.

Notifications of winners and publication

The results must be available within 7 days of the determination of the prize winners, if requested.

The name and address of each winner of a prize valued at over $250 (approx. US$173) must be published within 30 days of the draw:

  • published within 30 days of the draw;

  • in a newspaper circulating generally throughout the State;

  • if the lottery has only been advertised in a particular magazine, newspaper, newsletter or other publication (whether electronic or otherwise) or on a particular website, in that magazine, newspaper, newsletter or other publication or on that website;

  • if entry in the lottery is only permitted on a particular website, on that particular website; and/or

  • on the internet for a minimum period of 28 days.

Redraw

All prizes in the lottery must be distributed or allocated as approved.

If, despite every reasonable effort, a prize-winner cannot be contacted, the prize must be retained for 3 months after the draw. At the end of 3 months, if the prize remains unclaimed, the promoter should write to the relevant authority body requesting approval for a redraw.

However, if a prize is perishable (for example, a meat tray), the prize may be sold or otherwise disposed of in a way that the entity considers will bring a reasonable price. The money realized (after deducting the reasonable costs of sale or disposal) must be held in trust by the entity or the organization for the winner of the unclaimed prize.

Australian Capital Territory

All winners must be notified directly, by written means (email, mail, fax or SMS) within 21 days of the results.

The method, date, time and place of the redraw must be stated in the terms and conditions of the lottery.

New South Wales

For prizes worth more than A$10,000 (approx. US$6,926), the draw and the announcement of the prize winner(s) must be scrutinized by an independent person unless otherwise approved by the Department (unless the promotion involves an instant win).

Northern Territory

Prizes unclaimed for more than 3 months after the date of the draw must be surrendered to the Director of Licensing.

The names of the major prize winners must be published in a local or a national newspaper.

Queensland

If a prize is an antique, a gem, memorabilia or a work of art the prize winner must be given a current written market valuation from an appropriate valuer for the antique, gem, memorabilia or work of art.

If a prize is an animal, the prize winner must be given:

  • A certificate from a veterinary surgeon about the distinguishing characteristics and markings, health and physical condition of the animal; and

  • A current written market valuation from an appropriate valuer for the animal.

If a prize is a second hand motor vehicle, the prize winner must be given the following documents for the motor vehicle:

  • A current certificate of road worthiness; 

  • A current written market valuation from an appropriate valuer; 

  • A warranty for a period of three months after the day it is delivered to the winner; and

  • A security interest certificate under the Motor Vehicles Securities Act 1986.

If a prize is a thing, other than a motor vehicle, that is second hand, the prize winner must be given a current written market valuation from an appropriate valuer for the prize.

An existing prize with a value of more than A$5,000 (approx. US$3,463) must be insured against loss or damage for an amount equal to its current valuation for the period from when tickets for the art union go on sale to the day the prize is delivered to the winner.

If the prize is not claimed within one year the eligible association may apply the prize or its sale proceeds to the association's purposes.

South Australia

A participant cannot be restricted to winning only one prize if they are permitted to submit multiple entries.

The participants in a trade promotion lottery cannot be required to be present at the drawing of a trade promotion lottery in order to win a prize. Therefore, a prize cannot 'jackpot' if the winner is not present or a redraw conducted because the winner is not present.

If a prize is not delivered to its winner at the time the lottery is drawn, the winner must, within 14 days of the draw, be notified in writing of the prize he or she has won and the particulars of how the prize is to be delivered or collected.

Under the Regulations, a minor trade promotion lottery must not be drawn electronically unless the system has been approved by the Minister.

A scrutineer is required to attend a draw where the total value of all prizes (nationally) in the draw equals or exceeds A$20,000 (approx. US$13,852).

Tasmania

There must be no cost of entry, though it may be a condition of entry that goods or services must first be purchased in order to participate. If making a purchase is necessary to enter a trade promotion:

  • The cost of the goods or services must not exceed the prevailing market price; and

  • Determination of the market price lies with the Department of Liquor and Gaming and Department of Treasury and Finance.

If in doubt as to whether the amount charged exceeds the market price, details may be submitted to the Department for determination. If it is determined that the amount being charged exceeds the market price of the goods or services, the scheme would be deemed a lottery and would be unlawful.

Victoria

The winners of prizes must be advised in writing of the prize.

The winner of a prize must not incur a cost to accept a prize (other than a trivial cost).

The prize must be paid or transferred to the winner within 28 days after the draw.

A prize may only be substituted if the substituted prize is of the same or greater value than the original prize and the winner either agrees in writing, or the original prize is unavailable due to circumstances beyond the control of the person conducting the trade promotion lottery and reasonable attempts are made to reach agreement with the winner that are unsuccessful.

Western Australia

The draw must be conducted within one month of the closure of the lottery.

Where practicable, members of the public must be afforded the opportunity to witness the draw.

Where not practicable, audit records confirming the prize draw must be made available to an authorised officer of the Gaming and Wagering Commission or a Police Officer upon request.

All advertising must provide a description of the prizes and must contain the terms of the lottery or direct contestants to where the terms can be found.

Austria

Austria

The conditions for both skills competitions and prize draws, including for the awarding of the prizes, have to be transparent to participants.

Belgium

Belgium

None but it is strongly recommended to set out requirements (e.g. age) and restrictions in a terms and conditions document, especially as the promotions will often be offered to consumers (filing the terms and conditions with a notary public is not required by law).

There is no formal requirement to involve an external jury, judge or panel to select the winners, but doing so may decrease the risk of disputes afterwards.

Brazil

Brazil

Promoters must guarantee that the prize promotion is conducted and the distribution of the assigned participation numbers are made in a concomitant, random and equitable way.

The authorized entity will be the one responsible for identifying and notifying the winners. In case the winner does not collect its prize in up to 180 days, its right will be forfeited and the promoter must pay a corresponding sum as income to the state. Brazilian law does not allow the promoter to find an alternative winner.

Canada

Canada

There are no specific requirements for how winners are selected, except that:

  • The selection must be done fairly, giving each entrant an equal chance of winning;

  • The selection process must be disclosed clearly in all rules, advertisements, and point of purchase materials; and

  • Winners must be notified within 30 days.
Chile

Chile

The terms of competitions and sweepstakes must indicate the terms for claiming prizes.

The names of the winners should be published (for example on the website of the promoter), and participants must be informed of the results of the contests, competitions or sweepstakes.

The right to collect the prizes will expire after 60 days from the date of the relevant sweepstake (Law 18.568, which establishes standards of the Lottery of Concepcion).

China

China

Promoters should provide participants with information regarding the:

  • Prize type;

  • Probability of winning;

  • Value of prize or variety of prize; and

  • Time and method to award the prize.

If the prizes are not awarded instantly, additional information including the time, location and method to reveal winners as well as the time and method to inform the winners must be provided to participants. If the prizes are awarded instantly, for prizes above ¥500 (approx. US$73), details of how the prize is to be awarded must be provided to participants.

Promoters must not engage in any of the following prize-offering sales:

  • Conduct prize-offering sales by deceptive means, such as falsely declaring to have prizes or making false representation regarding the prize type, probability of winning, the value of the highest prize, total prize value, prize volume, prize quality, or method of prize awarding etc.

  • Provide unclear information about the prize promotion, such as the prize type, conditions to claim the prize, the prize value etc.

  • Use unfair means to ensure a designated insider wins the prize.

  • Intentionally keep the goods or lottery tickets with winning marks from being released to the market, or not release them simultaneously with the other goods and lottery tickets.

  • Intentionally release the goods or lottery tickets with different prize values or prize marks at different times.

  • Conduct prize-offering sales employed as a means to sell goods of low quality at a high price.

  • Conduct prize-offering sales in the form of lucky draw (on the basis of chance) where the highest prize exceeds ¥50,000 (approx. US$7,270).

  • Conduct other fraudulent acts of prize-offering sales.
Colombia

Colombia

When a sweepstake’s winner is to be selected based on a ticket’s number, the winner number can only be determined in accordance with the winning number of a public lottery for a previously determined date. In such cases, during the day prior to the draw, all tickets that were not granted to customers must be presented before Coljuegos, which is the governmental authority in charge of supervising such activities.

Whenever the winner is not to be determined by a ticket number, winners must be selected randomly.

Prizes must be received within 30 days following the date of the draw. Nonetheless, winners have up to a year to claim a prize.

If the prize is not claimed, the promotors must pay Coljuegos an amount equal to the value of the prizes that were not claimed by the winner(s).

Czech Republic

Czech Republic

It is however strongly recommended to set out requirements for the selection of winners and the awarding of prizes and restrictions in the terms and conditions applicable to the prize promotion, especially if the promotion will be offered to consumers.

The terms and conditions have to be transparent for participants before they enter the prize promotion, which means that among other things, information must be provided about how winners will be selected (e.g. by random draw) and notified (e.g. by email, telephone or regular mail) and what prizes will be awarded and when.

Denmark

Denmark

The selection of winners is not regulated as such. However, the winners of a competition must always be chosen in accordance with the criteria listed when the consumer entered the competition.

Note: The terms and conditions of the prize promotion must unveil clearly and unambiguously how the winner is selected, the date on which the winner is selected, where and when the name of the winner is published and the conditions for delivery/pick up of the prize.
Finland

Finland

The selection of winners is not regulated as such.

However, the terms and conditions of the prize competition must disclose clearly and unambiguously the date on which the prize draw is held and how winners will be informed about winning and receiving prizes.

France

France

The conditions for the awarding of the prizes must be transparent for participants.

Germany

Germany

None, but it is strongly recommended to set out requirements for the selection of winners and the awarding of prizes and restrictions in a terms and conditions document, especially if the promotion will be offered to consumers.

The terms and conditions have to be transparent for participants before they enter the prize promotion, which means that amongst other things, information must be provided about how winners will be selected (eg by random draw) and notified (eg by email, telephone or regular mail) and what prizes will be awarded and when.

Hong Kong

Hong Kong

For a Trade Promotion Competition License, the application form requires a declaration that there is a prize awarding process which is random and with each participant having an equal chance of winning.

Hungary

Hungary

There are no specific requirements for prize promotions in general. However, in the case of prize draws, the same degree of publicity shall be awarded to the drawing process, the winning tickets and the prizes as that provided when advertising the 'prize draw'. The GSA may conduct inspections. A notary public must be present at each drawing, unless the GSA prescribed otherwise in the authorization. The organizer shall arrange for the presence of the notary public and shall bear the costs of the notary public.

In the case of prize promotions organized for consumers, it is also strongly recommended to set out the requirements of selecting the winners and awarding the prizes and the possible restrictions in a set of terms and conditions. The terms and conditions have to be transparent for participants before they enter the prize promotion.

India

India

There are no specific regulations around selection of winners and award of prizes in a competition, however, as a good practice measure, promoters must ensure that prize competitions are conducted under proper supervision, adequate resources are available to administer them, enough time is allowed for each stage of the competition and the process of selection of winners is fair and independent.

Further, the Advertising Standard Council of India Code requires:

  • That advertisements inviting the public to take part in lotteries or prize competitions permitted under law or which hold out the prospect of gifts shall state clearly all material conditions as to enable the consumer to obtain a true and fair view of their prospects in such activities;

  • Advertisers to make adequate provisions for the judging of such competitions, announcement of the results and the fair distribution of prizes or gifts according to the advertised terms and conditions within a reasonable period of time; and

  • That with regard to the announcement of results, an advertiser’s responsibility is discharged adequately if the advertiser publicizes the main results in the media used to announce the competition as far as is practicable and advises the individual winners by post.
Ireland

Ireland

There are no specific requirements under Irish law. The ASAI Code (which is binding only on ASAI members) includes requirements on the selection of winners and the award or prizes. These requirements include the following:

  • Where a prize promotion involves any form of draw, promoters should ensure that tokens, tickets or numbers are allocated on a fair and random basis. An independent observer should supervise the draw to ensure that individual entries enjoy equal chances.

  • Unless otherwise stated in advance, prize-winners should receive their prizes no more than six weeks after the promotion has ended.

  • Promoters should either publish, or make available on request, details of the name and county (ie state or region) of residence of prize-winners. Promoters should bear in mind the risk of theft or harassment that may arise if details given are sufficient to allow the address of a winner of a substantial prize to be identified.
Italy

Italy

For Skills Competitions and Prize Draws, the winner must be selected either in the presence of an Italian Notary or an Officer of the Chamber of Commerce. In the case where the selection of winners is undertaken electronically, the results generated shall also be certified by an expert.

The Italian Notary or the Officer of the Chamber of Commerce present to the Skill Competition and Prize Draws shall draft the official minutes of assignment of the prizes and of closure of the promotion once the prizes are delivered to the winners. Prize winners should receive their prizes within 180 days of the closure of the promotion.

Nevertheless, the presence of a Notary / Officer shall not be required where the prizes are awarded shortly after the consumers enter the promotion, by way of automated or electronic systems (such as "Instant Win" or "Scratch and Win" etc.) which, by their very nature and with regard to the timing and methods of the execution, entail the exclusion of the Notary / Officer.

In any case, in multiphase prize promotions, the presence of the Notary / Officer can be restricted to the semi-final and final phases.

Japan

Japan

The methods for selection of winners and the requirements for awarding prizes in prize promotions are not regulated under the AAUPMR or any other relevant guidelines or notices. Methods can be determined at the discretion of the retailer/promoter. However, if a certain selection method was made public but the actual selection was conducted using a different method, it could be a violation of the AAUPMR's prohibition against misrepresentation.

Luxembourg

Luxembourg

Yes, under the previously applicable 2002 Law. Participation in a draw, whatever the terms and conditions, could not be subject to any financial compensation of any kind whatsoever, nor to any purchase obligation. Moreover, the conditions for the awarding of the prizes were to be transparent for participants.

It is uncertain whether such conditions remain applicable given the current status of the law (see Governing law). A number of operators on the Luxembourg market nonetheless continue to apply the principles of the previously applicable law as good practice.

Mexico

Mexico

Alongside other requirements, such as the requirement to obtain an authorization from the GOG, the applicant must provide:

  • A guarantee equal to the value of the prize(s);

  • Details relating to the procedure for selection of participants, draw operation, selection and publication of winners;

  • Ticket sample;

  • Identity of the ticket supplier (only applicable for instant draws);

  • Valuation of the goods to be given as prizes;

  • The structure of the promotion e.g. selection procedure and draw operation etc. for different prizes; and

  • Payment of government duties.

The GOG performs random reviews of the licenses it has granted to confirm they were performed in accordance with the procedure indicated in the application and the Gaming and Lotteries Law. In some cases a representative from the GOG attends the winner selection event and prize giving.

Netherlands

Netherlands

Selection of the winners(s) of prizes or free gifts from participants shall take place in an impartial manner. This can take place in several manners, for example through a notary, bailiff, independent person or through a computer process.

The results of the drawing have to be communicated within 3 months of the closing date of the promotion.

New Zealand

New Zealand

Prize promotions that are run as 'sales promotion schemes' do not generally have specific requirements regarding the selection of winners and award of prizes.

Where a sales promotion scheme meets the definition of 'remote interactive gambling', as defined in the Gambling Act, including any aspect of on-line entry, the outcome of the gambling must be determined by way of a lottery i.e. among other things, the draw must take place after all the participants have entered (note daily draws are permitted).

Nigeria

Nigeria

A promoter is required to use best endeavours to find and make payment to all prize winners. The detailed terms for selection of winners (which demonstrate best endeavours) are in practice set out in the terms and conditions of the promotion.

Norway

Norway

For lotteries with annual turnover over 200,000 NOK (approx. US$23,000) the following rules apply

In general, the lottery authority or those who it appoints must pick the prize winner where this is determined after the draw (i.e. raffle type lotteries).

The rules regarding the prizes are slightly different based on whether the promoter is an organization/charity, or a contractor performing lottery functions on behalf of such organizations/charities. Such contractors require authorization from the lottery authority.

Organization / charity lotteries

For lotteries (excluding gambling) where the prize winner is chosen before the draw (i.e. scratch cards), or after the draw, then the following rules apply:

  • The main prize cannot be more than 2 Million NOK (approx. US$229,000);

  • The prizes in total must be a value of at least 25% of the total allowed turnover;

  • 20% of turnover of the lottery after allowed deductions shall go to the humanitarian cause or charity;

  • The company must provide a guarantee or security for the prize money;

  • Licenses will not be provided for lotteries with interactive draws (draws upon demand - similar to gambling).

Contractor performed lotteries where contractor is responsible for choosing the prize winner

For lotteries (excluding gambling) where the prize winner is chosen before the draw (i.e. scratch cards), or after the draw, then the following rules apply:

  • The main prize cannot be more than 2 Million NOK (approx. US$229,000);

  • The prizes in total must be a value of at least 25% of the total allowed turnover;

  • 50% of the turnover of the lottery after allowed deductions shall go to the humanitarian cause or charity;

  • The contractor must provide a guarantee or security for the prize money.

For lotteries with annual turnover below 200,000 NOK (approx. US$23,000)

The regulations are not as strict for smaller lotteries with a turnover below 200,000 NOK (approx. US$23,000). For smaller lotteries the lots must be traditional and paper based, and they cannot include scratch cards.

For free competitions

For free competitions, promoters must ensure that they do not market the competition incorrectly. Therefore, if there are certain rules that apply or products that are offered, then these rules must be clearly set out and the products must be available to win.

Poland

Poland

There are no specific legal requirements for the selection of winners and the award of prizes.

However, the entity organizing the contest must determine the rules for selecting winners and awarding prizes. For skills competitions, the terms should also include the criteria for assessing the participants' skills.

Portugal

Portugal

Prize draws

In the scope of SGMAI procedure, the selection of the winners must be observed by a representative of the General-Secretary of Ministry of Internal Affairs or, where the selection is carried out using a computer program, such program must be provided to the General-Secretary of Ministry of Internal Affairs with a request for authorization for the intended means of selection. Among other aspects, the promoters must publish the day of the winner selection and the day to claim the prize in the same media as used to advertise the competition and the prizes must be claimed within 90 days after the selection of the winners.

However, depending on the competent Authority, which shall be assessed on a case by case basis, authorizing the prize draw, the rules may be different, as the recent amendments grant to the President of Municipality the authority to establish the conditions which shall be complied with for a prize draw for which the transfer of competences has been accepted.

Skill competitions

If the selection of winning entries is open to subjective interpretation, an independent judge, or a panel, should be appointed. Those appointed to act as judges should be competent to judge the subject matter of the competition. The full names of judges should be made available on request.

Romania

Romania

Selection of the winners shall be based on a draw (for prize draw) or on the participants’ performance (for skill competition).

The name of the winners and their prizes must be made public by the organizer of the prize promotion. However, GO 99/2000 does not impose a specific means for the publication of the winners’ names and prizes granted, and thus, the organizer may choose the means of publication at its convenience.

Russia

Russia

In relation to skills competitions, the process of selection of winners and requirements for awarding prizes is determined by the organizer but must be clearly described in the announcement of the competition.

In relation to lotteries, the order of determining the award and its amount must be defined by the organizer and clearly communicated to participants.

Saudi Arabia

Saudi Arabia

There are various requirements under the ACFR related to the selection of winners and award of prizes. For example, amongst others:

  • It is not permitted under the ACFR for certain 'connected' persons to participate in the prize promotion (including the beneficiary of the licence to hold the prize promotion, children, spouse, parents and/or employees), and

  • The ACFR requires that prizes must be given to winners within seven days from the date of sorting the results
Singapore

Singapore

We are not aware of any requirements in relation to the selection of winners and the award of prizes in the context of 'prize draws'.

In the context of certain exempt public lotteries such as Customer Lotteries and Non-commercial Organization Lotteries, it is a requirement that these lotteries do not include a 'Roll-over'. A 'Roll-over' is an arrangement whereby if a prize is not allocated or claimed in one lottery, the value of the prizes available for allocation in another lottery increases.

When an exemption to conduct a draw is granted to an organization by the MHA, pursuant to the general exemptions available within either the RGA or the CGHA, then such exemption is subject to certain conditions that the MHA may impose, including:

  • The methodology of the promotion, the details of the prizes to be distributed, their manner of distribution and where the winners are determined solely or partly by a draw, the time, date and place of the draw must be disclosed in print material, copies of which must be freely available to all participants.

  • Each draw must be conducted in public or, if conducted in private by means of a computerized system, be witnessed and audited by a public accountant who is not in the employment of the organization.

Generally, in respect of permits granted under the PLA, the permit officer may in granting any permit impose conditions such as:

  • The amount and number of prizes to be offered;

  • The number of tickets or chances to be offered for sale in such lottery and the prices and denominations of such tickets or chances;

  • The persons by whom, the manner in which, and the places at which, the tickets or chances may be sold or distributed and the persons or classes of persons to whom the tickets or chances may be sold or distributed; and

  • The time, place and manner in which the winners of prizes will be determined.
South Korea

South Korea

There are no regulations concerning the selection of winners and award of prizes. However, it could be an issue if the process of selection or award of prizes were particularly unfair, or if the terms and conditions were not accurately specified and advertised.

Spain

Spain

For prize draws, it is best practice to file the terms and conditions with a Notary Public and for them to conduct the draw (although it is not required by the applicable regulations). Prizes may be awarded either by direct allocation (every entrant receives a prize in which case it is not a skills competition and there must be no payment to enter beyond what is set out in the Prize draws section), skill (the most successful entrants receives a prize) or randomly (for example through a draw; this applies even if there was a pre-selection of winners based on skill i.e. it would still be classified as a game of chance).

Sweden

Sweden

Promotions must be performed in accordance with the conditions originally set forth by the promoter. Also, the same conditions must apply to all participants and the assessment of the contributions must be impartial and reliable. It is not permissible to select the winner in an arbitrary manner.

Please note that it is not sufficient to only contact the winner(s) of a competition. Instead, the results should be made as publicly available as the competition itself.

Thailand

Thailand

Under the Letters, a prize promotion is only permitted to be run via the following methods:

  1. By sending a voucher, card or part of a product (ie the bottle caps of bottles of water) to be drawn at the date, time and place specified under the License.

  2. By opening a 'signboard.' These are arranged on TV shows, where a contestant chooses a 'signboard' representing the advertising sponsor of the TV show in order to hopefully win a prize.

  3. By sending a text message via SMS or telephone system. The telephone numbers of the senders will be printed out to be drawn at the date, time and place specified under the License.

Under methods 1 and 2, the arranger must be the manufacturer or the exclusive distributor of the related products in Thailand (except shopping malls, department stores, banks or other corporate entities providing services). This is not a requirement if the prize promotion is conducted via method 3.

Details regarding the selection of winners (ie by lucky drawing) and award/prizes must be specified in the application and must be approved before the License is granted to the applicant/arranger.

Turkey

Turkey

The terms and conditions of the promotion must be made available to the public, and the process through which the winners shall be determined needs to be clearly set out, including the dates and place where the selection of the winner(s) will take place.

With respect to prize draws, the process of selecting winners must be open to the general public to observe, and the winner must be selected in the presence of a Turkish Notary Public. After the selection, the winners and the deadline for the application to receive the prize must be announced and notified to the winners. The prize must be delivered to the winners at the date announced previously, and this period cannot be more than one year after the beginning of the promotion.

Ukraine

Ukraine

Ukrainian legislation does not provide for any requirements relating to the selection of winners and award of prizes. Promoters are free to define the selection procedure for winners and the award of prizes in the terms and conditions of their prize promotion.

United Arab Emirates - Dubai

United Arab Emirates - Dubai

The draw itself must be conducted in the presence of a representative of the DED, even when taking place outside of Dubai or the United Arab Emirates.

This requirement is compulsory and any draw that fails to meet this condition may be cancelled by the DED.

Prize winners should receive their prize within 60 days from the final day of the promotional campaign or draw date. Any unclaimed prizes at the end of this period should be returned to the DED and when the prizes are vouchers, travel tickets or coupons the same should be returned in the form of cheques.

United Kingdom

United Kingdom

Promoters must ensure promotions are conducted under proper supervision, make adequate resources available to administer them and allow enough time for each stage eg judging rounds.

Prize draws must be selected by a computer process producing verifiably random results, or by (or under supervision of) an independent person.

Prize winners should receive their prizes normally within 30 days of the closing date. It is no longer a requirement, but advisable, if possible, to let winners know when they can expect their prize if not within 30 days.

Winners should be informed individually.

Promoters are required to publish or make available information that indicates an award of prize(s) took place – usually prize winner(s)’ surname(s) and county/counties. The promoter must warn entrants of their intention to do so, and give entrants the opportunity to object to or reduce the information made available.

United States

United States

Overall Summary

There is no specific statutory requirement for the selection of winners, but promoters must ensure promotions are conducted under proper supervision, make adequate resources available to administer them and allow enough time for each stage eg judging rounds. Some states do regulate the award of prizes.

Selected States

California – In California, an operator must award and distribute all prizes 'of the value and type represented'. Cal. Bus. & Prof. Code § 17539.1. Additionally, at the conclusion of a contest, its conductor must send, upon request by any contestant, the names of all winners, the prize won by each and, if applicable, the correct solution and the winning solution (if different). Cal. Bus. & Prof. Code § 17539.2.

Florida – It is illegal to fail to award prizes offered. Fl. Stat. §849.094(2)(c).

Illinois – Must award the prize within 30 days of announcing the winner. 815 ILCS 525/30.

Nebraska – It is illegal to fail to award the prizes which are offered. N.R.S. § 9-701(3)(c).

New York – Within 90 days of completion of promotion where the prizes offered exceed US$5,000, the operator must file with the Secretary of State the name and address of each winner of every prize valued more than US$25. N.Y. Gen. Laws § 369-e(5).

Rhode Island – It is illegal to fail to award the prizes which are offered. R.I. Gen. Laws § 11-50-5.