Promotional Contests
What Marketers Need to Know
Contests in Canada have a loyal following and offer marketers a way to increase brand awareness. They generate buzz and interest, so it’s no wonder that brands across all industries use them to attract and engage audiences.
To leverage contests, marketers must also be aware of and understand the regulations that govern contests in Canada. In addition to provisions in the Canadian Marketing Code of Ethics and Standards, the CMA Guide to Contests is a comprehensive resource to help marketers navigate the complexities of contests. The Guide answers frequently asked questions and provides insightful information about the relevant laws, best practices and strategic considerations to effectively operate contests.
- CMA Guide: Contests (members only)
- CMA Blog: Thinking of running a promotional contest? Start here.
The relevant applicable laws in Canada that impact contests are:
- The Criminal Code, which sets out lengthy provisions detailing whether a contest is an illegal lottery.
- The Competition Act prohibits any contest, lottery, game of chance or skill, or mixed chance and skill where the contest sponsor has not made adequate and fair disclosure of the number and approximate value of prizes, the areas in which prizes will be allocated, and any fact known to the contest sponsor that could materially affect the chances of winning.
- Consumer Protection Acts have specific disclosure and fairness requirements including strict rules about clear communication of contest terms and prohibiting deceptive practices.
- Canadian privacy law does not specifically address contests. However, where a contest includes the collection of personal information, the contest must be compliant with Canadian privacy laws. This includes the federal Personal Information Protection and Electronic Documents Act (PIPEDA), which governs the collection, use and disclosure of personal information data in Canada by private-sector and not-for-profit organizations, as well as privacy laws in Quebec, Alberta and British Columbia.
- CASL governs commercial electronic messages (CEMs) including email, text and social media messages that encourages participation in a commercial activity.
- The Copyright Act prohibits a contest sponsor from using a copyrighted work (such as an original photo or music) in connection with a contest without authorization from the work's owner.
- The Trademarks Act may prohibit a contest sponsor from using a trademark (such as a company/product name, logo or tagline) without the permission of, or a licence from, the trademark's owner.
