![]() The promotion must always be clear and not misleading. You should ensure that you estimate demand for the offer as accurately as possible. Your business must say when the offer ends or that it is “subject to availability”. The promotion must be a genuine price reduction or increase in volume that is applied for a particular period of time. ![]() Your business should not offer a prize promotion without awarding the prizes described or a reasonable equivalent.ĭo not create a false impression that a consumer has already won a prize if there is no prize or the customer has to incur a cost to claim the prize, as this is a criminal offence.Ī price promotion could be money off or free extra volume or value. Participants in an “instant win” draw should be able to get their prize immediately or know they have won and how to claim their prize without delay, cost or hassle. ![]() If the draw is open to all, the chances of success must be the same for everyone regardless of how they entered and the prize allocation must be by chance. Your business can restrict entry to individuals who accept certain conditions (for example, giving personal information). With a few exceptions (for example, the National Lottery), running a lottery requires licences and compliance with various laws. The rules are different and stricter for draws carried out in Northern Ireland. In Great Britain, your business would be allowed to require a purchase as a condition of entry, but the price of the product cannot be inflated to cover the cost of the promotion, otherwise the draw will be deemed a lottery. The competition should not merely consist of guessing the outcome of a race, competition or other event, or guessing whether or not something will happen or is true, as these types of promotions can create legal problems.Ī prize draw is a scheme in which prizes are allocated by chance but there is no entry charge. If participation in a competition is made dependent on the payment of a contribution, then success must depend, to substantial degree, on the exercise of skill. Failure to comply could result in your business: There are laws and voluntary codes that govern most sales promotions, so you should take legal advice before holding any type of sales promotion. This checklist sets out the different types of sales promotions that your business may wish to use to promote its goods or services.Ī sales promotion is a marketing device (for example, a competition or prize draw) designed to encourage the purchase of a product or service.
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