people run a prize draw and entrants have to pay for their tickets to enter, they must be officially registered first. The National Lottery is an example. Most people do not want to do this and that is why the majority of prize draws are free and you see the words: “no purchase necessary” in the small print. Be careful : if people have to call or text a premium phone number, even though you may not get that money, it still counts as having to pay to enter.
The other option is to make it a genuine competition rather than a prize draw. Here again, you need to take care that the competition does not amount to gambling ie playing a game of chance or guessing the outcome of an event to win a prize. You can do this by ensuring that entrants would have to answer questions or apply some sort of skill within a game to enter.
As with all arrangements involving your business, you then need terms setting out the deal or, in this case, the terms on how people can enter and what they will win.
Essential points to include in your small print are as follows:
- This draw is open to [residents of the UK or whichever class of entrants you choose] who submit an entry form by midnight on [date]. Best to say they must be over 18 too
- No purchase is necessary.
- Employees of [ ] or their families are not eligible to enter.
- All complete entry forms will be placed in a draw which will take place on [date] and the winner will be chosen at random by an independent observer.
- Only one entry per person.
- The winner of the draw will be announced on the [website].
- The Promoter will also send confirmation to the winner that they have won via email, using the winning email address. He or she will then be requested to provide personal data in order for the Promoter to contact him or her. In the event the e-mail is returned as undeliverable, or the winner declines the prize, he or she will be disqualified.
- The Promoter reserves the right to modify, suspend or cancel the Prize Draw without any prior notice.
- The prize is [here you need to be very specific].There is no cash alternative.
- The judge’s decision is final and no correspondence can be entered into.
- The Promoter is [name and address of entity running the competition]
And so that you can use the e-mails and addresses you have collected in the competition for future marketing, you need to include the following tick box on your competition entry form:
Yes, please send me exclusive offers and specials by email. (I can unsubscribe at any time). I understand my data will be held in accordance with this Privacy Policy.
If you are under 18, please obtain your parent or guardian’s consent before ticking this box.
Please remember this is only an outline of the law. If in doubt, do give us a call. |