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Canadians like to participate in public, advertised contests and games. We compete for prizes. Most often we are unaware that the promoters of these events are governed by specific rules in relation to them. The law on contests, prizes and games is sometimes classified under marketing law. A level playing field for these activities protects consumers from unfair or deceptive promotional activities relating to the contests and games. In its simplest form, gambling involves a prize, a chance and a consideration money or other economic value exchanged.
Business promotions that are a combination of these three elements constitute a form of gambling. The state has an interest in protecting average citizens from wasting their time and energies engaged in what are essentially fraudulent activities.
Reducing the incidence of fraudulent activity in commerce is not only fair to honest competitors, but it also increases confidence in, and respect for, our competitive marketplace. This article identifies and highlights the federal and provincial regulation of contests, games and prizes.
Most businesses circumvent the gambling characterization by removing or changing one of these three elements. For example, the business charges nothing no consideration for its customers to win a prize. Perhaps skill as in answering a question replaces random chance. These contests, prizes and games are technically not gambles.
They are legal and unregulated. In Canada optionen trading card game online 2015 codes giveaways gambling-related activities — that is, those involving a prize, chance and consideration exchanged — start with the Criminal Code s. Moreover, governments have enjoyed the extraordinary revenue stream that may be harvested from controlled, legalized and regulated gambling. Accordingly, all gambling is generally criminalized in Canada see section After initially criminalizing all gambling, the Criminal Code, in the optionen trading card game online 2015 codes giveaways section s.
Activities which are provincially-licensed and regulated are deemed to be legal gambling. Few business promotions involving contests, games and prizes will need to be registered under provincial gambling programs. The Criminal Code also criminalizes cheating at play and failing to comply with the provincial regulations s. The provinces have established large, complex administrative agencies such as the Alberta Liquor and Gaming Commission and the Ontario Lottery and Gaming Corporation, supported by detailed regulations and processes optionen trading card game online 2015 codes giveaways implement legal gambling in their jurisdictions.
Any business using a contest as a promotional tool must disclose specifics of the optionen trading card game online 2015 codes giveaways such as the number and value of the prizes, the areas in which the prizes are being distributed, and anything that affects the chances of winning.
Similar to the Criminal Code general prohibition of gambling, section 53 begins with a blanket prohibition:. This provision, enacted inin complicated legal language, Any business using a contest as a promotional tool must disclose specifics of the prizes such as the number and value of the prizes, the areas in which the prizes are being distributed, and anything that affects the chances of winning.
Punishment is a fine for a corporation, optionen trading card game online 2015 codes giveaways for a corporate director or officer a fine and up to 14 years imprisonment. If you have not heard of any convictions under this provision of the Competition Actit is because there really have not been any of note. These rules, however, can also be used as a basis for civil claims and at least one class action settlement under this provision was approved Speers v.
Many business promotions are communicated to the public as spam messages. Since July 1,this legislation endeavours to protect Canadian consumers from spam and to increase the confidence of Canadians in the use of electronic commerce.
This new legislation creates an offence to knowingly make false or misleading statements and provide false or misleading information. Any message sent by electronic communication must be received with consent, must clearly identify who sent the message, must allow the recipient to contact the sender contact information must remain valid for at least 60 daysand permit an unsubscribe option where opting out can be done at no cost and up to at least 60 days later.
Opt out requests must be processed within 10 days. The law adopts an opt-in approach that requires a positive and explicit expression of consent for each new commercial electronic message. No longer will marketers be able to pre-check a box to receive messages or bundle consent with general terms and conditions of sale.
The law also prohibits false or misleading subject lines or sender information. This federal legislation regulates the collection of personal data for marketing purposes.
It applies to provinces other than Alberta, British Columbia and Quebec that have passed substantially similar laws. Subject to some exceptions, organizations may only collect, use and disclose personal information once they have notified the subject individuals of the purpose of the data collection and received meaningful and informed consent from them.
In addition, personal information can only be collected, used or disclosed for purposes that are reasonable and only optionen trading card game online 2015 codes giveaways the extent necessary to fulfil those purposes. Likewise, the Privacy Act can also come into play with the law of contests, prizes and games because most times you will be asked to provide personal information upon entering a contest or winning a prize.
Under section 5, the Act states that the individual must be informed as to why the information is being collected. Under section 6, the information that is collected must only be used for its intended purpose; otherwise, the individual must consent to additional uses. In addition to federal criminal and competition legislation, the provinces prohibit unfair and deceptive trade practices which can include dishonest commercial contests, games and prize promotions.
Almost all of these provincial statutes deem certain commercial tactics as illegal trade practices. These include taking advantage of consumers, using high pressure or undue influence, and resorting to ambiguous, exaggerated or deceptive facts in promotion. All of these tactics can come in the form of contests and prize promotions.
It is optionen trading card game online 2015 codes giveaways an unfair practice to knowingly deceive or mislead the consumer, represent sponsorships, affiliations, or benefits that are not true and that the product or service does not have. A company also cannot make false or misleading representations or misrepresent the quality or standard of any product or service. This genre of provincial legislation across Canada is similar in content but goes by different names: While it seems that Canada, through federal and provincial legislation, has in place many safeguards for the consumer when it comes to contests, games and prizes as business promotions, the real test of effectiveness will be found in the enforcement of the regulations and the remedies.
Several attention-grabbing, exclamatory sentences in bold uppercase letters suggested he had won a cash prize of U. The reply coupon offered Richard the opportunity to subscribe to Time magazine. Believing he would receive the promised amount, Richard immediately subscribed to Time magazine and returned the reply coupon.
He received no money because he did not have the winning entry for the draw. The whole package, they explained, was only an invitation to participate in a sweepstakes. The average consumer here would have been under the general impression that Richard held the winning entry and had only to return the reply coupon to initiate the claim process. This recent judicial decision reminds us that legislation is often mightier on paper than it is in action.
The best law of consumer protection in commercial contest, game and prize promotions may often simply be to discard the promotion. All resources are free and available for download. The information on this website is provided for general information purposes only and is not meant as legal or other professional advice. If you require specific legal advice on any issue please consult a lawyer. LawNow is a registered trademark in Canada. LawNow Magazine relating law to life. Federal Regulation Criminal Code In its simplest form, gambling involves a prize, a chance and a consideration money or other economic value exchanged.
Competition Act Any business using a contest as a promotional tool must disclose specifics of the prizes such as the number and value of the prizes, the areas in which the prizes are being distributed, and anything that affects the chances of winning. Similar to the Criminal Code general prohibition of gambling, section 53 begins with a blanket prohibition: Provincial Legislation In addition to federal criminal and competition legislation, the provinces prohibit unfair and deceptive trade practices which can include dishonest commercial contests, games and prize promotions.
Time While it seems that Canada, through federal and provincial legislation, has in place many safeguards for the consumer when it comes to contests, games and prizes as business promotions, the real test of effectiveness will be found in the enforcement of the regulations and the remedies.
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