Running a giveaway or contest in Canada: rules for brands, apps and creators
Written by For Founders Law, a Toronto firm licensed by the Law Society of Ontario. About us
In short
A promotional contest in Canada has to satisfy the Criminal Code's lottery rules and the Competition Act's disclosure rules. In practice that means a genuine no-purchase way to enter a random draw, a skill-testing question before a prize is awarded, and fair disclosure of the prizes, their value and the odds. Quebec no longer requires contests to be registered with its gaming regulator, but French-language rules still apply, and platform promotion rules and anti-spam consent apply everywhere.
A giveaway is one of the cheapest ways for an app, a consumer brand or a creator to grow an audience. It’s also an area where two federal statutes apply at once, and where a few small changes to the mechanics make a big difference.
This post is general information, not legal advice.
Two federal laws
The Criminal Code. Section 206 makes it an offence to conduct various schemes for disposing of property by lot or chance. One of its paragraphs, for example, covers disposing of goods by a game of chance, or of mixed chance and skill, in which the contestant pays money or other valuable consideration. That’s why Canadian promotions usually remove either the payment or the pure chance.
The Competition Act. Section 74.06 makes it reviewable conduct to run a promotional contest without adequate and fair disclosure of the number and approximate value of prizes, the regions they relate to, and any fact you know that materially affects the chances of winning. It also covers undue delay in awarding prizes and selecting participants or winners on a basis other than skill or random selection.
The usual building blocks
No purchase necessary. If winners are chosen at random, give people a genuine free way to enter. “Upgrade to Pro for a chance to win,” with no free option, is the classic mistake for a subscription app. Requiring a paid download or another thing of value can raise the same issue. Purchase-linked contests are possible, but get advice before you launch one.
A skill-testing question. For random draws, the standard practice is to require the selected entrant to correctly answer a mathematical skill-testing question before receiving a prize. Make it a real multi-step question.
Judged contests. If winners are chosen on merit, such as the best photo or caption, the contest is skill-based. Your rules should explain the judging criteria and who judges.
Two layers of rules
Short rules where people enter. The caption, landing page or in-app screen should give the essentials: who can enter, start and end dates and time zone, how to enter, the number and approximate value of prizes, how winners are chosen, the odds (for example, that they depend on the number of eligible entries), that no purchase is necessary, and a link to the full rules.
Full rules on one page. Cover eligibility and age, entry limits, how and when winners will be contacted, the skill-testing question, what happens if a winner can’t be reached, prize substitution, your right to cancel or amend for reasons outside your control, how entrant data will be used, and rights in any content people submit.
Quebec
On October 27, 2023, Quebec repealed the publicity contest provisions of its lotteries legislation. Contests open to Quebec residents no longer need to be filed with the Régie des alcools, des courses et des jeux or pay duties to it (contests already filed before that date stayed under the old rules). The Criminal Code and the Competition Act still apply, and Quebec’s Charter of the French Language means you should plan for French versions of your rules and creative. If you aren’t ready to translate, exclude Quebec clearly in both layers of rules.
Platform rules
Each platform has its own promotion rules on top of the law. Instagram’s promotion guidelines, for example, ask organizers to include a release of Instagram by each entrant and an acknowledgement that the promotion isn’t sponsored, endorsed or administered by Instagram. Mechanics like “tag three friends” can also run into platform rules. Read the current guidelines for every platform you use.
Entrant data and email consent
If building your list is the goal, treat consent carefully. Under CASL, you need consent before sending commercial electronic messages. A separate, unchecked opt-in box with a record of when and how each person agreed is the cleanest approach. Collect only what you need to run the contest, say how you’ll use it, and link to an accurate privacy policy. Asking entrants to send referral emails to friends raises its own CASL issues. See CASL for SaaS and e-commerce.
Creators and partners
Paid creators promoting a contest need to disclose their material connection to the brand, and their posts must match the rules. If a partner overstates the prize, the brand carries the risk. Give partners approved copy, require a link to the full rules and keep screenshots of what went live.
Before you launch
- Offer a free way to enter any random draw.
- Add a skill-testing question for random-draw winners.
- Disclose the number, value and regions of prizes and the odds.
- Publish full rules and link to them wherever people enter.
- Decide whether Quebec is in or out, and translate if it’s in.
- Check the platform’s current promotion rules.
- Collect marketing consent separately from entry.
We prepare terms of service and run CASL reviews at fixed fees, listed on our fees page. If you’re planning a giveaway or in-app promotion, book a free 15-minute consult.