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Prize Promotional Legal Compliance in Germany (Prize Draws, Competitions, Contests, Sweepstakes, Giveaways)

ItemTop level assessment
Can you run prize draws in Germany?
(i.e. chance based promotion)
Yes
Can you run competitions in Germany?
(i.e. skill based promotion)
Yes
Is local registration required?No
Is regionalisation/translation required?Yes
Are there restrictions on prizes?Yes
Can you run purchase necessary
prize promotions in Germany?
Yes
Compliance feasibility and costHighly feasible, low cost
Looking to run a German prize promotion? Contact the experts.

Running a Prize Draw or Competition in Germany (Laws, Rules and Regulations)

Running a prize promotion campaign in Germany is relatively straightforward and can be achieved at low cost. Nevertheless, it is important to ensure that any campaign is strictly compliant with German requirements.

German Prize Draws, Sweepstakes and Giveaways (Chance Based Promotion)

Chance based promotions are allowed in Germany. The UWG applies equally to chance based promotions and skill based promotions, so for either type its requirements must be adhered to.

If a consent to receive marketing communications is a requirement of entering the prize promotion, the promotion should not be described as “free”. It is considered as an exchange of contact data and permission for the chance to win a prize and the terms and conditions should reflect this.

A chance based promotion should not require payment to enter, otherwise it may be considered as gambling. Payment is considered to mean that a participant makes a financial sacrifice in order to obtain a chance to win, except when the amount is a low cost of entry e.g. to cover standard telephone or postal entries (generally considered as between €0.05 and €2.50).

German Competitions and Contests (Skill Based Promotion)

Skill based promotions are allowed in Germany. The UWG applies equally to chance based promotions and skill based promotions, so for either type its requirements must be adhered to.

Conditions relating to claiming the prize and any limitations should be very clear in terms and conditions, including scenarios where there are more than one winner (e.g. whether the prize is split or otherwise assigned to a single winner).

A skill based promotion should not require payment to participate (a fee charged, or similar), otherwise it may be considered as gambling.

Purchase Necessary Promotions in Germany

Purchase necessary promotions are allowed in Germany. Promoters must pay attention to not offering prizes that exert a psychological pressure to buy the promotional product or “unduly influence a decision to purchase”.

Promotional products should be the same price as non promotional products of the same type, otherwise it could be considered that the promotion is requiring payment to enter.

If a purchase necessary promotion is directed towards children, prizes should be within a “reasonable” (not excessive) value, as to not take advantage of a lack of commercial experience or awareness in children. Case law can provide ranges of value in such circumstances. Purchase necessary promotions directed at children should not collect personal data for marketing purposes.

German Prize Restrictions

In purchase necessary promotions, prizes must not be so disproportionate or excessive in value (relative to the product to be purchased) as to exert psychological pressure or “unduly influence a decision to purchase”.

When a prize promotion is aimed at children, prizes should be within a “reasonable” (not excessive) value (German case law can support ranges of value).

Any potential cost to claim the prize(s) must be clearly described.

Prizes must be legal, recipients must be able to legally accept (e.g. children and alcohol or tobacco).

Data Protection in Germany (GDPR)

Germany, despite a relatively relaxed stance on other prize promotional requirements, is the strictest country (along with Austria) as far as data protection is concerned. No soft, implied, or single opt-in is allowed in either B2C or B2B settings. Germany requires double opt-in in all circumstances – i.e. a deliberate opt-in and then a secondary confirmation. Data collection from children in prize promotions is also more restrictive. They do not accept any kind of implied consent – including for common uses like the publication of winner’s list – explicit permission must be sought.

See our GDPR opt in rules by country.

Other German Compliance Requirements

Terms and conditions should be clear and unambiguous and available in German.

Promotions must respect the winner’s privacy, winners must give explicit permission to be included in winners lists (rather than implicit consent via terms and conditions as is common).

Data protection should be strictly observed, data must only be used for the purposes outlined in advance of entering the promotion (in the terms and conditions), and if consent to marketing is a function of the promotion, it must be properly described and double opt-ins are required.

Cookies consent under TTDSG needs to be complied with.

Our view on Germany for Prize Promotions

As Europe’s largest economy and consumer market, Germany is a critical territory to include for most European prize promotions. Given this fact, combined with a compliance approach that is very fairly pragmatic, allowing purchase necessary promotions (with some caveats), permitting prize draws, and few tax implications for prize promotions, this is arguably one of the most attractive territories in Europe. However, Germany is arguably the most strict territory in Europe in terms of consumer data protection for both adults and children, B2C and B2B, and special attention should be paid to this. Get in touch to make sure you’re running a promo on the right side of the rules and laws in Germany.

Disclaimer: The information on this page and individual country summary pages are not substitutes for formal compliance advice and Contest PR do not make any warranty regarding accuracy or completeness. They are highly simplified general guides and may not be up to date at the time of reading. Please get in touch for up to date advice and compliance assistance on this territory.