This comprehensive contest checklist will help you with your next promotion and making sure you have all the bases covered and are in compliance with the law pursuant to the Competition Bureau of Canada and the Criminal Code of Canada.

Contest and promotion in Canada are governed by the Competition Act and the Criminal code.   Compliance requires adherence to Section 74.06 of the Competition Act which relates to false or misleading representations and deceptive marketing practices and Section 206 of the Criminal Code which deals with the no purchase requirement of contest and the requirement to have a skill testing question.  Any contest rules template should ensure that the basic minimum requirements are met by both legislations.  You can read more on the Competition Bureau's website which is summarized below.

Key Legal Requirements for Promotional Contests

1. Competition Act Compliance: Section 74.06

74.06 A person engages in reviewable conduct who, for the purpose of promoting, directly or indirectly, the supply or use of a product, or for the purpose of promoting, directly or indirectly, any business interest, conducts any contest, lottery, game of chance or skill, or mixed chance and skill, or otherwise disposes of any product or other benefit by any mode of chance, skill or mixed chance and skill whatever, where

(a) adequate and fair disclosure is not made of the number and approximate value of the prizes, of the area or areas to which they relate and of any fact within the knowledge of the person that affects materially the chances of winning;

(b) distribution of the prizes is unduly delayed; or

(c) selection of participants or distribution of prizes is not made on the basis of skill or on a random basis in any area to which prizes have been allocated.

In summary, Section 74.06 of the Competition Act mandates that any contest promoting goods and services must:

• Disclose the number and approximate value of prizes.

• Specify geographical areas where prizes are available.

• Provide any material information affecting the odds of winning.

• Ensure that prize distribution isn’t unduly delayed.

• Ensure winners are selected based on skill or a random basis.

The Competition Act also requires that there be "adequate and fair disclosure" of the contest rules and your contest rules should be clear, conspicuous, and accessible without requiring participants to make a purchase. Entrants should not need to visit a retail outlet to understand the rules.  In other words:

• the entrant should not be inconvenienced in any way to have to commit to the advertiser's product or contest

• the entrant should not have to obtain further details and the contest rules should be clear and conspicuous

• the entrant should not have to visit a retail outlet, franchise or dealer to enter a contest or become aware of the contest rules

Adequate disclosure in the contest rules template should be made for the following (and are included in the Contest Rules Template):

• Prize Value - Section 74.06(a) of the Competition Act provides for disclosure of the "approximate" value of the prizes meaning the approximate market value (and in the case of a trip where it difficult to determine the value with exact precision, a few representative examples would suffice).

• Regional allocation - any regional allocation of prizes such as whether in the atlantic provinces or Quebec should be disclosed.

• Chance of Winning - if a total number of prizes are known in any production run, then this affects the chances of winning and must be disclosed.

• Series of prizes - if prizes are awarded at different times, then this must be disclosed.

• Early Bird Prizes - if certain prizes are only awarded to the first entrants, then it imust be disclosed.

• Disclosure at point of sale - disclosure of a short list of contest rules must be made on any specially-marked packages when the contest involved such products. The entrant should not have to purchase a product to be familiar with the contest rules.  The short list disclosure of rules includes:

  • the number and value of prizes

  • any regional allocation of prizes

  • the skill testing requirement

  • details as to the chances of winning

  • contest closing date

  • any other facts that materially affect the chances of winning.

Criminal Code Compliance: Section 206

Section 206 of the Criminal Code prohibits contests (lotteries and games of chance) that:

1. Require the purchase of a product or service as a condition in participating in the contest.  The section reads:

"Everyone is guilty of an indictable offence and liable to imprisonment for a term not exceeding two years who (...) (f) disposes of any goods, wares or merchandise by any game of chance or mixed chance and skill in which the contestant or competitor pays money or other valuable consideration;  (...)

2. Awards prizes based on pure chance, unless a skill component (like a mathematical skill-testing question) in included.

   
   

   Games of pure chance are prohibited as illegal lotteries under the Criminal Code.  There is why a skill testing question is required in all Canadian contests. This section requires that a contest must have an element of skill involved and a winner cannot be chosen randomly alone (unlike in the US).  Most contests permit a four part mathematical skill testing question.   

   
   

   The Criminal code prohibits games of chance or mixed chance and skill where a purchase is required to win a prize.  Although the Competition Act permits winners to be determined on the basis of either skill or by chance, Section 206(1)(a) to (d) of the Criminal Code prohibits the conduct of contest in which winners are determined solely by chance. 

   
   

   A person that violates section 74.06 of the Competition Act may be subject to being ordered not to engage in such conduct, publish a corrective notice and/or pay an administrative penalty up to $750,000 (for an individual) and up to $10,000,000 (for corporations).  Subsequent violations are increased to $1,000,000 (individuals) and $15,000,000 (for corporations).

Detailed Contest Rules Checklist (with template)

1) Official Contest/Promotion Name

“The contest name is officially listed as [Contest Name].”

Provide a clear, unique name for the contest that reflects the promotion. This name will be used across all promotional materials and legal documents, ensuring participants know what contest they’re entering.

2) Contest Start Date - including date, time and time zone

Clearly state the exact date, time, and time zone for when the contest begins and ends. This avoids ambiguity and ensures that participants know the duration of the entry period. Legal Requirement: Section 74.06 of the Competition Act mandates fair and transparent contest timelines.

3) Contest Close Date - include date, time and time zone

“The contest begins at [start date, time, time zone] and ends at [end date, time, time zone].”
Reference: Competition Act, Section 74.06 – Ensures fair disclosure of entry period.

4) Eligibility - Specify geographical restrictions and age limitations

Define eligibility criteria, including age, residency, and any other qualifications required to enter the contest. For instance, specify if participants must be residents of a particular province or territory, and state any age restrictions. Legal Requirement: Eligibility information ensures clarity, as required under Section 74.06 of the Competition Act.

“The contest is open to residents of [list of regions/provinces] aged [age requirement] and older.”
Reference: Competition Act, Section 74.06 – Requires clear eligibility criteria.

5) Language/Territories (Geographic Restrictions) – Specify if the contest includes Quebec, and whether rules are provided in English and French.

Specify if the contest is available in multiple languages or if it includes/excludes Quebec. Given Quebec’s distinct contest regulations, it’s essential to either include French materials and adhere to local laws or explicitly exclude Quebec from eligibility.

“This contest is open to legal residents of [list of regions/provinces], except where prohibited.”
Reference: Competition Act, Section 74.06 – Ensures fair disclosure of the contest area.

6) Sponsor Information - Name of Contest Sponsor and Sponsor’s address

Include the sponsor’s name, address, and contact information. This transparency builds trust with participants and clarifies who is responsible for the contest.

“This contest is sponsored by [Sponsor Name, Address, Contact Information]. For any inquiries, please contact us at [Contact Email/Phone Number].”

7) Privacy Policy URL - Link to the Sponsor’s privacy policy URL

Provide a link to the privacy policy, explaining how entrant information will be collected, used, and stored. Compliance with privacy laws requires transparency about data use. Entrants should understand what happens to their information after the contest ends.

“By entering, participants agree to the sponsor’s [Privacy Policy URL].”

8) Administrator’s Address

“Contest administration is handled by [Administrator’s Name and Address].”

Number of Entries and How to Enter the Contest

9) Method of Entry - Specify if entry is based on a random draw, skill-based question, social media interaction (e.g., Facebook or Twitter entry methods), game, competition, tell-a-friend and any bonus entry options etc.

Describe how participants can enter the contest, specifying the type of entry method (e.g., random draw, skill-testing game, social media entry). If the contest allows for entries through multiple channels (e.g., Twitter, Facebook), outline each method. This transparency is required by Section 74.06 of the Competition Act to ensure participants know all entry options.

Will the Contest be promoted on Facebook? Twitter?

“Participants may enter by [method of entry]. Social media entries require a public profile for entry verification.”
Reference: Competition Act, Section 74.06 – Requires clear entry instructions.

10) Entry Limitations - State the number of entries and any restrictions on the number of entries?

State the maximum number of entries allowed per participant, if any. For example, some contests allow multiple entries per person or additional entries for actions like sharing the contest. Specify any such rules to prevent confusion and maintain fair play.

“Each participant may enter up to [number] times during the contest period.”

11) Information Required - List required information for entry and registration into the Contest/Promotion

List the information participants must provide, such as their name, email, and phone number. Limiting information collection to what is essential for contest administration helps comply with privacy laws.

“Entrants must provide [information required, such as name, email, etc.].”

Release Forms

12) Release/Waiver - Address for submitting release forms should be specified.

Specify any required release or waiver forms, particularly if winners will appear in promotional content or publicity materials. This form confirms that winners consent to the use of their likeness or statements. For liability reasons, particularly in high-value contests or travel-related prizes, a release form protects both the sponsor and entrant.

“Winners must complete and return a release form to [Address] within [number] days of notification.”

13) Submission Deadline - Number of days allowed to return a declaration and release?

State the timeframe within which winners must return their completed declaration or release forms (e.g., within 7 days of notification). This ensures all participants understand their responsibilities if they win and helps sponsors manage timelines efficiently.

Prizes, Selection & Restrictions

14) Prize Description, Restrictions & Distribution - Provide a description of all prizes, including the Grand Prize, Secondary Prize, etc. and the number and approximate retail value of all prizes).

Clearly describe each prize, including the number, types, and approximate retail value. Providing a detailed description allows participants to understand what they stand to win, and the Competition Act requires the disclosure of the value of prizes.

“This contest offers [number] prizes, each valued at approximately [value] CAD. Prizes include [list types].”
Reference: Competition Act, Section 74.06(a). OR

“Prizes include [describe prize(s), approximate retail value of each]. Total approximate retail value: [total amount] CAD.”
Reference: Competition Act, Section 74.06(a) – Requires prize disclosure.

“Travel prizes include round-trip airfare and hotel for [number of nights]. Travel dates subject to blackout dates and must be booked by [date].”
Reference: Competition Act, Section 74.06 – Clarifies prize terms.

“There are a total of [number] prizes available, each with an approximate retail value of [amount] CAD. Prizes include [list of prize types].”
Reference: Competition Act, Section 74.06(a) – Requires clear disclosure of prize quantity and approximate value.

State how and when prizes will be distributed, ensuring that participants know when to expect the award. The Competition Act requires that prizes not be unduly delayed, so setting a clear timeline helps prevent misunderstandings.

“Prizes will be awarded within [number] days of the contest end date.”
Reference: Competition Act, Section 74.06(b) – Prevents undue delay in prize distribution.

15) Grand Prize Restrictions - Specify any and all details of the grand prize to leave out any ambiguity such as:

• age requirements

• flight departure and return dates

• blackout dates

• number of guests permitted

• length of hotel stay

• whether a valid government ID is required

• whether travel documents are required

• specify what expenses are or are not covered such as transportation, transfers, food, beverages, taxes, tips or gratuities. 

• Ensure you add a date indicating when the prizes will be distributed.

Outline any restrictions on prizes, such as age limits, travel conditions, or blackout dates for trips. Be transparent about any limitations, such as guests allowed, expenses covered, or specific conditions to redeem the prize.

Legal Requirement: Section 74.06 mandates that prize terms be fully disclosed.

16) Winner Selection and Notification Details: Specify the timing for winner contact and the deadline for potential winners to respond and answer:

• 1) When can we contact the winner?

• 2) How many days does a potential winner have to contact the contest administrators?

“The winner(s) will be selected at random from eligible entries received or based on completion of a skill-testing question.”
Reference: Competition Act, Section 74.06(c) – Requires a random or skill-based selection process.

“Winners will be notified via [method, e.g., email] and must respond within [number] days to claim the prize.”

Contest and Sweepstakes Draw

17) Draw Attempts - State how many times the draw will be redone if a winner cannot be determined after the initial draw.

If the contest involves a random draw, explain how many attempts will be made to reach a winner if the initial selected entrant does not respond. For instance, you may attempt to contact additional entrants until a winner is confirmed. Clear rules on redraws help avoid disputes if winners are not immediately reachable.

“If the selected winner does not respond within the allotted time, alternate winners will be drawn up to [number] additional times.”

Odds of Winning

18) Odds of Winning - Describe the odds of winning each prize - Describe the odds of winning for each prize.

Clearly state the odds of winning, typically depending on the number of entries received. For example, “The odds of winning depend on the total number of eligible entries received.” Transparency regarding odds is required by the Competition Act, Section 74.06(a).

“The odds of winning depend on the number of eligible entries received.”
Reference: Competition Act, Section 74.06(a) – Mandates disclosure of information that impacts winning chances, such as the number of entries.

No Purchase Necessary

19) Confirm No Purchase Requirement - Confirm that no purchase is necessary to enter.

Include a statement confirming that no purchase is necessary to enter or win. Canadian law prohibits a purchase requirement for entry in promotional contests. Legal Requirement: Section 206 of the Criminal Code strictly mandates a “no purchase necessary” rule to prevent contests from being classified as lotteries.

“No purchase is required to enter or win. Entry can be completed by [describe non-purchase entry method, such as submitting a form].”
Reference: Criminal Code, Section 206 – Prohibits requiring a purchase to participate in a contest.

Skill Testing Question

20) Skill-Testing Question - Provide a description of the skill testing question.  Ensure you have added a skill testing question such as a mathematical skill-testing question, as required.

Include a mathematical skill-testing question (e.g., “To claim the prize, the selected entrant must correctly answer: 10 + (5 × 3) = ?”). Canadian law requires that contests incorporate a skill component, differentiating them from games of pure chance, which would otherwise be considered an illegal lottery. Legal Requirement: Criminal Code, Section 206(1)(f).

“To be declared a winner, selected entrants must correctly answer a mathematical skill-testing question: (e.g., 2 + 4 × 5 = ?).”
Reference: Criminal Code, Section 206(1)(f) – Ensures compliance with the need for a skill component to avoid an illegal lottery.

Miscellaneous

21) Compliance with Applicable Laws - Confirm that entrant will abide by all applicable laws including privacy policies and that the use of entry information from entrants will only be used for the purpose of the contest administration unless they have specifically and clearly opted in in writing.

This statement protects sponsors and participants, ensuring they understand legal expectations and limitations.

“By entering, participants agree to abide by all applicable laws, including privacy policies. Entrant information will only be used for contest administration unless otherwise opted in.”
Reference: Competition Act and Privacy Laws – Requires transparency and compliance with privacy laws.

22)  Abbreviated rules - Provide a summary of the key rules for display on materials like contest packaging or advertisements.

For contests advertised on packaging or other promotional materials with limited space, include an abbreviated version of the rules. This brief outline should mention the prize value, odds, skill-testing question, and contest end date, with a link to full rules online. Legal Requirement: Competition Act, Section 74.06 encourages fair access to contest information.

“Available prizes: [list of prizes]. Contest ends on [date]. Odds of winning depend on entries received. Full rules available at [URL].”

Additional Tips for Adequate Disclosure

To meet adequate disclosure requirements, include the following in your contest rules:

• Prize Value – Disclose the approximate market value of each prize. For example, “The approximate retail value of the grand prize is $5,000 CAD.”

• Regional Allocation – Clarify if prizes are allocated regionally, especially if they are not available across all locations in Canada.

• Chance of Winning – State the odds if known. Clarify if the odds change based on the number of participants, allowing entrants to understand their chances.

• Series and Timing of Prizes – Indicate if prizes are awarded in stages or as “early-bird” prizes. If prizes are awarded at different times (e.g., monthly draws or early-bird prizes), provide a schedule or list each prize period.

• Point-of-Sale Disclosure – On specially marked products, disclose essential details like the number and value of prizes, the contest’s closing date, and any regional limitations.

• Stay Transparent – Ensure your rules are easily accessible, comprehensive, and written in simple language.

• Make Entry Free – Avoid any language or requirements suggesting a purchase is necessary to enter.

• Disclose All Details – Keep all essential details visible at every contest stage, from initial entry to final prize distribution.

Contest Rules Template Download

To help simplify the process, download a customizable [Contest Rules Template] that includes these essential elements. Make sure to adjust the template to fit the specific requirements of your promotion.

This checklist and template should set your contest on the path to compliance and success, helping you engage your audience while meeting all legal obligations.