Item | Top level assessment |
Can you run prize draws in Canada? (i.e. chance based promotion) | Yes (with compulsory skill question) |
Can you run competitions in the Canada? (i.e. skill based promotion) | Yes |
Is local registration required? | No |
Is regionalisation/translation required? | In Quebec only |
Are there restrictions on prizes? | Yes |
Can you run purchase necessary prize promotions in Canada? | No Purchase Necessary route required |
Compliance feasibility and cost | Highly feasible, medium cost |
Running a Prize Draw or Competition in Canada including Quebec (Laws, Rules and Regulations)
Running a prize promotion campaign in Canada has become more straightforward in recent years, particularly with changes the province of Quebec has made to liberalise its prize promotion requirements (Historically many promotions running in Canada would exclude Quebec). Nevertheless it is important to properly regionalise for the Quebec territory and to ensure that any campaign is strictly compliant with Canadian requirements. Of particular note are Canadian attitudes to chance based promotions (and the strict requirement of a skill question), and the need for a No Purchase Necessary route of equal weight when running a promotion tied to the purchase of a product.
Canadian Prize Draws, Sweepstakes and Giveaways (Chance Based Promotion)
Chance based sweepstakes/prize draws as most would typically understand them are not allowed in Canada. Canada requires a compulsory skill question, a “true test of skill”, typically a mathematical question (these must be bona fide questions, “2+4” would not suffice). Canadian courts generally approve of a mathematical question consisting of four parts that follows the order of operations (BEDMAS), consisting of reasonable difficulty and requiring an answer without a calculator.
Entrants must not pay or provide other forms of consideration to enter.
Canadian Competitions and Contests (Skill Based Promotion)
Skill based promotions are allowed in Canada. Winners must be selected on a fair basis, based on set criteria which has been communicated to entrants in all rules and promotional materials.
Purchase Necessary Promotions in Canada
Purchase necessary promotions are not allowed in Canada without an NPN (No Purchase Necessary) option. A No purchase necessary route is required, and this “NPN” route must be afforded equal weight to any pay-to-enter route (known as “equal integrity”) – meaning any free entry should not be disadvantaged against the paid entry.
Mail in entries are a popular NPN route offered; typically short essays – where the entrant mails in a postcard or form to a PO box address or similar.
Canadian Prize Restrictions
There are no specific restrictions on prizes in Canada, however the monetary value of all prizes (even if approximate) offered should be shown in all terms and conditions, rules and promotional materials.
Data Protection in Canada
Canadian prize promotions must comply with Canada’s Anti-Spam Law (“CASL”), most commonly in relation to email opt-in and consent to marketing communications.
See our GDPR opt in rules by country.
Other Canadian Compliance Requirements
Terms and conditions should be clear and unambiguous.
If you are running the promotion in the territory of Quebec, your terms, rules and promotional materials should be available in French. Entry should be available in French also, if relevant.
Canada has comprehensive disclosure rules. These relate to the contents of the rules and terms and conditions themselves (for example – prizes, prize details, prize values, odds of winning), and also relate to the disclosure of salient details regarding the promotion wherever it is advertised or mentioned. On all packaging, advertising and other promotional materials, disclosures related to the number and approximate value of available prizes, any regional allocation of the prizes and of any other fact that materially affects the chances of winning (e.g. odds, No Purchase Necessary) must be stated. Generally promoters will include shortform terms wherever the contest is advertised, which include an abbreviation of the terms and a link to longform terms.
“Material Connection” disclosures: if a promotion requires entrants to share or post on social media, these posts should carry a disclosure as they have been incentivised by prize(s) – similar to how advertising posts must carry a disclosure identifying them as ads.
Our view on Canada for Prize Promotions
Since Quebec liberalised their (somewhat strict) rules and requirements around prize promotions in 2023, many promoters are now able to take advantage of running prize promotions across the whole of Canada without as much fuss (as long as they remember to regionalise Quebec!). Canada does not require registration and for skill contests is very straightforward, but chance based promotions require special attention, and rules around purchase necessary and extensive disclosure should be paid close attention. Get in touch to make sure you’re running a promo on the right side of the rules and laws in Canada.
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Disclaimer: The information on this page and other individual or summary compliance 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.