Promotional Contest

A law firm sought a written opinion on behalf of its client, an entertainment company, in October 2004, on whether a proposed promotional contest could raise concerns under the Competition Act. The company proposed to run a sports pool on computer terminals that interacted with closed circuit broadcasts surrounding sporting events.

These terminals will be located at certain bar establishments. In order to play the sports pool game, a consumer could purchase an access card which provides access to the computer terminal. There is also a "no purchase necessary" method of entry. The complete rules and regulations for the contest would be posted at the bar establishment.

The opinion provided by the Bureau on March 4, 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 official rules and regulations, which will be available in participating establishments as well as on the Web site and on request by mail, do not include any misleading representations, and provide adequate and fair disclosure to potential participants of the following:

• the number and value of prizes being awarded
• the existence of any skill testing question element
• any regional allocation of prizes (if applicable)*
• the contest closing date
• the chances of winning; and
• any fact within the knowledge of the contest runner, that would materially affect one’s chances of winning.

* There did not appear to be any regional allocation of prizes in this case, based on the information submitted.

(3098656)