Prize promotions
Prize promotions

The following TMT practice note provides comprehensive and up to date legal information covering:

  • Prize promotions
  • Types of prize promotion
  • Lotteries
  • Paying to participate
  • Costs of postage, calls, texts, email or web access at a ‘normal rate’ are not payments to enter
  • Product price must not be inflated
  • Provision of data is generally not payment
  • Payments to collect prizes must be limited to normal delivery costs
  • Genuine free-entry route
  • Determination of winners by chance
  • More...

Prize promotions

This Practice Note examines the law and regulation that applies to operating prize promotions, including prize competitions and free prize draws. It covers:

  1. Types of prize promotion

  2. Lotteries

  3. Paying to participate

  4. Determination of winners by chance

  5. Northern Ireland

  6. Scotland and Wales

  7. CAP Code and BCAP Code—overview

  8. CAP Code—terms and conditions

  9. CAP Code—other key provisions

  10. CAP Code—summary table

  11. Consumer Protection from Unfair Trading Regulations 2008

  12. Phone-paid Services Authority (PSA) Code

  13. Data protection

  14. Ownership and use of competition submissions

  15. Prize promotions on social media

  16. Prize promotions aimed at children

  17. Sanctions for non-compliance

  18. House raffles

  19. Travel and holiday promotions

The law concerning sales promotions and lotteries is not harmonised in the EU and certain promotion mechanics which are commonly used in England and Wales may be unlawful in other European territories (including in Northern Ireland and the Republic of Ireland). This is a particular issue for digital and social media promotions as key platforms, such as Facebook, have a global reach. For more information on the rules in other jurisdictions, see Practice Note: Getting the Deal Through: Advertising & Marketing 2020.

For further reading on prize promotions and template terms and conditions, see:

  1. Precedent: Prize promotion terms and conditions—short form

  2. Precedent: Prize promotion terms and conditions—long form

  3. Precedent: Prize promotions terms and conditions—holiday prize clause

  4. Precedent: Prize promotion terms and conditions—copyright ownership clause

  5. Checklist: Prize promotions

Types of prize

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