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Promotional Competitions

What is a promotional competition?
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A promotional competition is defined as follows in the Consumer Protection Act ("CPA") -

"any competition, game, scheme, arrangement, system, plan or device for distributing prizes by lot or chance if-                                           

(i)      it is conducted in the ordinary course of business for the purpose of promoting a producer, distributor, supplier, or association of any such persons, or the sale of any goods or services; and

(ii)     any prize offered exceeds the threshold prescribed in terms of subsection (11),

irrespective of whether a participant is required to demonstrate any skill or ability before being awarded a prize."

 

Promotional competitions in terms of the Consumer Protection Act
 
All promotional competitions where the prize is of R1,00 or more in value needs to comply with Section 36 and Regulation 11 of the CPA. The competition rules need to comply with the CPA and an independent person (attorney, advocate, accountant or auditor) needs to oversee and certify the conducting of the competition and report this through the promoter's internal audit reporting. Records of the competition need to be kept by the promoter and there are restrictions as to who is entitled to receive a prize. Venn Attorneys oversees the conducting of promotional competitions from beginning to end and compiled the relevant report in terms of the CPA. We assist and advise marketing and PR agents as well as promoters throughout the process.
What our services include
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Conducting promotional competitions in terms of the CPA is a very particular process and requires overseeing and certification by an independent attorney/advocate/accountant/auditor. Venn Attorneys oversees the entire process and compiles a report for internal auditing. Steps Venn Attorneys oversees and advises on -

1. Drafting and reviewing competition rules

2. Artwork for the competition

3. Overseeing determination of the prize winners (overseeing the draw)

4. How to contact prize winners and questions to ask

5. Drafting of documentation to be completed by the promoter or its agents as required by the CPA  

6. Venn Attorneys compiles a report regarding the overseeing of the competition to keep on record.

Venn Attorneys / Consumer Law, Contracts & Promotional Competitions / T 082 371 2548 / jessica@venn-attorneys.co.za / © 2013 by Venn Attorneys

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