Contest promoters must provide adequate and fair disclosure of:

• the number and approximate value of the prizes; 
• the area or areas to which the prizes relate;
• the skill testing question requirement (if there is one);
• the contest closing date; and
• any important information relating to the chances of winning such as the odds of winning.

A consumer should not have to purchase a product, visit a business establishment or be inconvenienced in any way in obtaining this basic information about a contest that is proscribed by law.

The Act also requires contest promoters to select participants and distribute prizes randomly or on the basis of skill. The distribution of prizes cannot be unduly delayed.

In the case of civil law matters, such as promotional contests, the Commissioner may take the matter to the Competition Tribunal, the Federal Court or the superior court of a province.

If the Tribunal or a court finds that the contest contravened the Act, it may order the party to:

• Cease engaging in such conduct or substantially similar reviewable conduct;
• Publish a corrective notice; and/or
• Pay an administrative monetary penalty of up to $750,000 for a first time occurrence by an individual and $10,000,000 for a first time occurrence by a corporation. For subsequent orders, the penalties increase to a maximum of $1,000,000 for an individual and $15,000,000 for a corporation.

In addition to complying with the Competition Act, a contest must be lawful as it relates to other federal and provincial statutes and local by-laws. The Criminal Code should also be considered, whenever a party proposes to conduct a contest.

While the Competition Act does not directly prohibit a requirement that participants pay money or other valuable consideration in order to participate in a contest, it is prohibited under the Criminal Code to require that a product or service be purchased as the sole condition of contest participation. Unless other means of entry are available, such as using a “reasonable hand-drawn facsimile” or obtaining entry forms by means other than making a purchase, contests with purchase requirements are illegal under the Code.