Promotional Contest - Stock Market Tournament

A Canadian company sought a written opinion in July 2005 on whether a proposed promotional contest could raise concerns under the Competition Act. The company proposed to run a stock market tournament where the winner would receive a large cash prize.

The rules would allow anyone to enter the tournament upon the payment of a fee and the contest would be conducted over the internet. The complete rules and regulations for the contest would be posted on the company’s Web site and would also be included in the company’s own magazine.  No promotional material was provided for the Competition Bureau’s review but the company stated that all advertisements would contain a short form of disclosure.

The opinion provided by the Bureau on September 7, 2005, stated that the contest as proposed would not give the Commissioner grounds to commence an inquiry under section 74.06 of the Act. In the Bureau's view, the contest would adequately disclose the number and approximate value of prizes, the area or areas to which they would relate, and any important information relating to the chances of winning, such as the odds of winning.

(3099187)