HOW TO RUN A FAIR & LEGAL UK PRIZE PROMOTION

Disclaimer – this post is based on current guidelines published by the Lotteries Commission, the CAP and the ASA (October 2016) and does not constitute legal advice. 

If you’ve been blogging for a while, you’ve probably already been approached to run a prize promotion. And good for you! They’re a fantastic way to increase traffic, create a buzz and encourage a whole new audience over to your site, especially with Christmas on the horizon.

But what you might not realise is that by hosting a prize promotion (and thereby becoming a promoter) there are a whole bunch of legal, regulatory and moral rules you need to follow. If you don’t you could find yourself – at best – in quite the embarrassing PR pickle, or – at worst – at risk of being prosecuted.

Those of you who’ve been knocking about for a while might remember a few years ago, when a prominent high street retailer decided it would be a brilliant idea to run an online kids’ modelling contest.

On paper it sounded great – people would submit photos of their little ones and the public would vote on their favourites. The winners would be those kids who got the most votes.

You can’t get fairer than that, right? Wrong.

Rather than the public objectively selecting their favourite photos, some parents started calling in favours with their friends, family and assorted social media followings. It basically came down to how many people the parents knew, rather than who genuinely deserved to win.

There were rumblings of discontent, followed by out-and-out accusations of vote rigging and cheating. For weeks it played out on the retailer’s Facebook page – furious parents demanding their little darlings were being unfairly judged.

It was an absolute PR disaster.  

I’m not trying to scare you (really, I’m not!), but it’s important to realise there are things you can and can’t do when running prize promotions.

WHAT ARE YOU RUNNING?

So, let’s start at the beginning: are you running a lottery, a competition, or a giveaway?

A lottery is a random draw that requires a payment to enter. As a blogger you should be steering well clear of lotteries, as they fall under the control of the Gambling Commission and you will be breaking the law if you don’t run them exactly and correctly.

Competitions require a level of skill to enter – a complex question (it can’t be something obvious, like what colour is the sky) or an activity such as taking a photograph, coming up with a slogan, etc.

You cannot personally select the winner of a competition you promote. To ensure absolute fairness, the winner must be selected by an independent judge, or a panel that includes at least one impartial judge – ie; someone who doesn’t have ties to your blog, or the brand or business supplying the prize.

Finally, a giveaway – or prize draw – is a promotion won via a randomly selected entry, and requires very little time or effort from the person taking part.

For the purpose of blogging I would HIGHLY recommend you always run giveaways. You have no control over who wins, but they’re much simpler to run. You stand much less chance of falling foul of Committee of Advertising Practice (CAP) Code regulations, and you remove any risk of disgruntled non-winners kicking up a fuss over the result.

THE RULES AND REGS:

However, that does not mean your giveaway doesn’t need to follow certain rules, as laid out by the CAP code and regulated by the Advertising Standards Authority (ASA).

First and foremost, your promotion must not confuse or deceive the people who are entering it – either accidentally, or otherwise. Ignorance of the rules is NOT an excuse, so it’s really important that you understand how to run a fair and legal giveaway.

You must not offer a prize that may cause offence to the people likely to see it, or an adult-only prize (including alcohol) on a site where the audience is primarily children.

If you’re tempted to charge people to enter your promotion, think carefully. There are ways that you can do it, but paid promotions are bound by a whole other complicated set of rules and regulations that – to keep it simple – I’m not going to broach in this post.

Terms and conditions are essential, and the most important ones must be easily viewed BEFORE someone decides to enter. You don’t have to have legal knowledge or jargon to write them, as long as they are worded clearly and concisely.

The CAP Code states you must include a detailed description of the prize, how people enter and any exclusions, (UK only, over 18 only, you must obtain permission from a parent to enter, etc).

Everyone who meets your entry requirements must have a fair and equal chance of winning. Unless they’ve won some by some form of deception, you can’t refuse to award the prize simply because you wish it had gone to someone else (ie: if a man wins a prize that’s more suited to a woman, etc).

You must also state a start date (if applicable), and a closing date. Once the prize promotion has gone live the end date must not be changed, unless there are unforeseen and unavoidable circumstances. So if your closing date is looming and only three people have joined in, you can’t extend the end date to get more entries, as it makes it unfair on the people who have already entered.

You must also include the name and address of the promotor (you!), although you can state that it will be provided on request, so you’re not broadcasting your personal details to all and sundry.

I also choose to state that Mummy’s Little Monkey shall not be held liable for prizes that are damaged or lost in transit, and that – should unforeseen circumstances result in the prize becoming unavailable – all reasonable efforts will be made to provide a suitable alternative.

This isn’t a legal requirement, but gives me some protection if issues arise that are out of my control.

SOCIAL MEDIA PROMOTIONS: 

Social media differs from regular advertising in that some platforms simply don’t have enough space to include all the information you need.

So you’re allowed to direct people to a separate page where the less important T&C’s are housed (such as how and when winners and results will be announced; when prize winners will receive their prizes; whether or not there is a cash alternative and any restriction on the number of entries, etc).

For example, if you’re running a promotion on Twitter you can include the main info on one tweet then use a shortened link to lead to the full T&Cs, OR you can send the tweet in two parts (mark it with 1/2 then 2/2, etc).

Check your T&C’s carefully, because once your promotion is live you can’t change or add to them – although it is sometimes OK to introduce extra conditions if people are unfairly exploiting the promotion (you can seek advice from the ASA to find out if this is an option for you).

YOU’VE WON! 

Your prize draw must have a randomly selected winner. You cannot draw names out of a hat, or close your eyes and take a stab at a list of entries, unless there is an independent and unbiased observer there to oversee the selection.

The advice of the CAP is that winners be selected by computer process, to remove any chance (or accusation) of bias.

As mentioned earlier, a public promotion must be open to everyone who meets the eligibility criteria you’ve clearly set out in your T&C’s. This is particularly important for Twitter giveaways, where the platform makes it very awkward to track every entry.

I always use a hashtag, so entries can be more easily collated. BUT – ensure it’s completely unique – don’t use #Win or #WeekendTreat, etc – or you’ll end up including random tweets in your prize draw that just happened to use the same hashtag as you.

And make sure you invest in quality tracking software – the Twitter hashtag tracking function is not very reliable, which the CAP is well aware of. They haven’t made an example of anyone yet, but it’s only a matter of time.

I’ve used Hashtracking and TweetReach in the past. If you’ve agreed to run a promotion on behalf of a client, agree upfront that they’ll pay for the cost of the software.

When running prize draws on my blog I prefer to use the paid version of Rafflecopter (there is a free option of Rafflecopter, as well as similar programmes, like Gleam, etc.).

If I’m running a Facebook wall giveaway I make sure my comments are set to chronological order, as this helps to eliminate any entries left after the closing date and time.

Then I use a free random number selector, such as Randomizer.org. I enter the total number of entries, allow the software to pick one, then manually count down until I reach that number. Yes, it’s a bit of a faff, but it’s the fairest and safest way to find your winner.

ALTHOUGH… technically you could also manipulate the result of Randomizer (ie: redraw if you don’t like the result), so the safest scenario is to complete the process under independent observation, or have someone else select the winner for you.

FYI: In addition to the legal and ASA regulations, Facebook has its own set of rules that must be followed – I’ve listed those separately at the bottom of this post.

With all your promotions – whether they’re run via your blog or social media – you must also announce the full name (first name is not enough) and county of all winners, or state that they’re available on request.

To get around the privacy laws you will need to state in your T&Cs that this information may be publicly announced; as long as you have this, everyone who enters is also automatically giving consent for this information to be shared.

Now, this is a rule not many people are conscious of – including big brands and companies: once the winner has been announced, you can’t give them a deadline to respond, unless the prize is time sensitive (ie: concert tickets for a certain date).

HOWEVER… this rule is in place to prevent companies giving an impossibly short time for winners to reply. So while you can’t say someone has to ‘reply in three days, or the winner will be redrawn’, it’s equally unrealistic to have absolutely no time limitation at all – otherwise how would you fulfil your prizes?

So long as you give a reasonable time frame (28 or 30 days are most common) and can show that you’ve taken ALL reasonable steps to contact your winner, the ASA isn’t likely to have an issue.

From your end, you must also fulfil the prize within the time frame you’ve specified in the terms and conditions of your promotion (again, 30 days is standard).

AND… BREATHE! 

I know – it’s a lot, and all these rules and regulations are overwhelming at first. Just remember they’re not there to intimidate you, they’re simply in place to ensure every single eligible person who enters your promotion has a fair and equal chance of winning, and also to protect you too, if anything unforeseen goes wrong.

If you always ensure your promotions are as crystal clear as possible, you’re already halfway there. And keep yourself up-to-date with the information published by the CAP and ASA, as the rules are constantly evolving as they keep up with changes in the industry.

Good luck!

Please feel free to comment with any additional questions you have, and I will try my very best to answer them for you. And see the end of the post for a list of places you can promote your prize promotion.

FACEBOOK RULES: 

So. In addition to all of the other things I’ve already mentioned, Facebook has its own set of rules that must be followed when you’re running promotions via their platform – I’ve listed them separately at the bottom of this post. If you don’t, your page – at the very least – runs the risk of looking unprofessional and attracting negative feedback. At worst, your page could be reported to Facebook and deleted without warning.

For a period Facebook refused to allow promotions to appear directly on their wall. They’ve now relaxed these rules, but only on the condition the promoter has total control over their giveaways and competitions.

This means you must absolve Facebook from any and all responsibility. You can word this in your own way, but Rafflecopter suggests a release along these lines: ‘This promotion is in no way sponsored, endorsed or administered by, or associated with Facebook. You understand that you are providing your information to the owner of this Facebook page and not to Facebook.’

You can use third-party software (such as Rafflecopter or Woobox) to house your FB giveaway or post it directly to your wall. While you ask people to ‘like’ the post or leave a comment, you can’t ask them to Like the page, Share the post or Tag a friend to enter the promotion. Personal profiles can’t be used to administer promotions or collect entries (this is due to ensure people’s privacy).

Facebook is notoriously secretive and it can often be hard to get answers regarding what is allowed and what isn’t. My advice would be – until there is a clear and definitive public announcement saying ‘Yes! Go for it!’ don’t do it. You don’t want to get on the wrong side of Facebook. Like, ever.

WHEN THINGS GO WRONG… 

Sarah Burns is a board director of the Institute of Promotional Marketing, and founder of prize management agency, Prizeology, the driving force behind some of the UK’s biggest and most successful prize promotions. In addition to advising on this post, she has very kindly agreed to pass on some of her vast insight and experience.

What are some of the most common mistakes you see in promotions?

Inadequate terms, or more often than not, no terms and conditions is the greatest offence. Terms and conditions are the backbones of any prize promotion regardless of who are you and the platform you use. They’re essential because they protect both consumer and promoter. I have an aversion to terms and conditions copied from elsewhere that look fabulously legalese but actually amount to a load of rubbish. If you don’t understand the terms you’ve copied from someone else’s promotion, don’t expect your customer or audience to make sense of them either. Lack of closing date and time is also a very common error, especially on social media prize promotions. It’s a crucial piece of information otherwise how do your participants know when to stop entering, and how do you know when to conduct the draw?

Why is it important to follow the regulations, and what’s the worst that can happen if you don’t?

It’s a common misconception that regulatory codes, and the law, are only applicable to big brands or flashy fancy promotions. Ignorance is no defence; anyone planning to run a prize promotion no matter how big or small must do their homework first.

Let’s take changing a closing date as an example. This is contra to the CAP code, and any individual, including your competitor, could complain to the Advertising Standards Authority. While there are no legal implications, an upheld complaint will not do your professional reputation any favours. I suggest would-be-promoters research the ASA website; at first glance, it may not seem a riveting read, but it is actually an excellent place to swot up. Previous complaints provide significant insight into how the ASA interprets the CAP code.

From a legal perspective, if you have not understood the distinction between a free prize draw and a lottery, you risk breaking the law. It is illegal to run a lottery without a licence and in this instance, the Gambling Commission (which enforces the Gambling Act 2005) will prosecute. If you are in any doubt about the legality of any planned activity, seek advice in the first instance and only ask for help from someone genuinely qualified to do so.

Compliance with the Data Protection Act 1998 (DPA) is not just a matter of best practice; the penalties for breach are significant. The Information Commissioner’s Office, which enforces the DPA, can impose fines of up to £500,000, prosecute (a prison sentence in some cases), or serve enforcement notices. These may be extreme examples, nevertheless, it’s important to apply the eight principles of the DPA where appropriate to your prize promotion. The new EU General Data Protection Regulation (GDPR) comes into force in 2018 and much content is available to help us all prepare. Do not wait until then to determine what this change in law means for you.

What can be some of the non-legal repercussions?

The backlash from a poorly managed or non-compliant prize promotion can be catastrophic. Social media is the favourite platform for disgruntled participants to share their dissatisfaction, and once this beast has been unleashed it’s both time-consuming and difficult to manage. Even if you’re able to control the fury, the damage to your brand is already done, your promotional success undermined, and the chances of consumers trusting you again is reduced to somewhere between zero and unlikely. It may be tempting to cut corners, or think no one will notice, but believe me someone will catch you out.

Can you give an example of a spectacularly disastrous promotion?

On any given day, you will find a prize promotion fluffing it up on Twitter but there are some memorable larger scale disasters. Early last year, Gillette Venus awarded its photography competition prize to an entrant who’d stolen an image from the Internet. Ouch. While the brand seemed blissfully unaware other contestants swiftly found the original owner of the photo. The fallout very public, and excruciating. A London estate agent experienced the full brunt of consumer outrage (and an upheld ASA complaint) for awarding its one and only available prize to the owner’s brother’s girlfriend (or something like that) while a Scottish promoter thought it acceptable to award a used iPad to its winner; Nickelodeon once awarded a mega bonanza kids’ Xmas prize to someone even older than me and the recent Walkers’ Spell and Go campaign generated considerable publicity across consumer press with stories about the alleged lack of available opportunities to win featuring from the BBC to the Mirror.

@prizeology; facebook.com/sparkandfuse

Sign up to Prizeology newsletter – it’s packed full of great tips and advice: www.prizeology.com

WHERE TO LIST YOUR PRIZE PROMOTION:

Super Lucky (monthly linky for blog promotions): http://superlucky.me/

U Me and the Kids weekly linky: http://umeandthekids.com/competitions-linky/

Prizefinder: http://www.theprizefinder.com/

Loquax: http://www.loquax.co.uk/

Competition Database: http://www.competitiondatabase.co.uk/

Money Saving Expert (search Competitions Time): http://forums.moneysavingexpert.com/

You can also search Facebook for prize promotion groups.

USEFUL CONTACTS:

Prizeology (prize promotion experts): www.prizeology.com

Di Coke ‘Super Lucky Di’ has been a comper for over 20 years. She has written several books about running and entering prize promotions, and runs a popular linky for blogger giveaways: http://superlucky.me/

Lotteries Commission: http://www.gamblingcommission.gov.uk/

Committees of Advertising Practice: https://www.cap.org.uk/

ASA Copy Advice Team: https://www.cap.org.uk/Advice-Training-on-the-rules/Copy-Advice-Team.aspx

Advertising Standards Authority: https://www.asa.org.uk/

• you might also like to read ‘How to NOT put off a PR’, or ‘Top 5 Tips for Working from Home‘.