Contest checklist to 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. Section 74.06 of the Competition Act relates to promotional contests and is part of the deceptive marketing practices provisions. Section 206 of the Criminal Code 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.
Promotional contests are governed by the Competition Act and note the following:
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 prohibits any promotional contest that does not disclose:
The Competition Act also requires that there be "adequate and fair disclosure" of the contest rules. This requires the following:
Adequate disclosure in the contest rules template should be made for the following (and are included in the Contest Rules Template):
Section 206 of the Criminal Code, in relation to lotteries and games of chance, prohibits the purchase of a product or service as a condition in participating in the contest. The section notes:
"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; (...) Update (2026): Since September 19, 2019, section 206(1) is a hybrid offence that may also be prosecuted on summary conviction.
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 vioaltions are increased to $1,000,000 (individuals) and $15,000,000 (for corporations). Update (2026): Since June 23, 2022, penalties can be higher: the greater of those amounts and three times the benefit gained (or, for corporations where the benefit cannot be determined, up to 3% of worldwide gross revenues).
1) Official Contest/Promotion Name
2) Contest Start Date (including exact time, date, time zone)
3) Contest Close Date (including exact time, date, time zone)
4) Contest Eligibility (geographical restrictions)
5) Language/Territories – Does it include Quebec? English? French?
6) Name of Contest Sponsor and Sponsor’s address
7) Contest Sponsor’s privacy policy URL
8) Administrator’s Address
9) Method of Entry to contest (random draw? skill testing contest? game? competition? Facebook and/or Twitter entry methods?) Is it tell a friend? Will the Contest be promoted on Facebook? Twitter? Any bonus entries?
10) Number of entries and any restrictions on the number of entries?
11) Information Required for Registration into the Contest/Promotion
12) Release/Waiver and address where Release Forms Should Be Sent To
13) How many days does an entrant have to return a declaration and release?
14) Prizes (including Grand Prize, Secondary Prize, etc. and the number and approximate retail value of all prizes)
15) Grand Prize Restrictions (age requirements, flight departure and return dates, blackout dates, number of guests permitted, length of hotel stay, what government ID and travel documents are required, 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.
16) Prize Winner Selection and Notification Details:
1) When can we contact the winner?
2) How many days does a potential winner have to contact the contest administrators?
17) If there is a draw, how many times will a draw be redone if we can’t determine a potential winner the previous attempts?
18) Describe the odds of winning each prize.
19) Confirm No Purchase Requirement
20) Description of skill testing question. Ensure you have added a skill testing question
21) 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.
22) Abbreviated rules
Download a sample contest rules template here.