Codes and Law
Consumer Protection Regulations Recent Adjudications - feeling the pain
In most countries there are numerous laws and codes to be considered – lawyers and specialist agencies may know the details of these rules, and you may have compliant terms and conditions, but rarely will a lawyer get involved in the most vulnerable aspect of any promotion – the implementation. That is what makes PromoVeritas unique. We cover compliance in the UK and all across Europe and beyond using our own extensive experience and a network of Marketing Law specialists in over 40 countries. We review promotional mechanics, draft appropriate terms and conditions, obtain the necessary approvals and authorisations, pay the required taxes and sort out the fair and correct implementation of the campaign.
For Radio & TV Broadcasters
In the UK Ofcom and PhonePayPlus regulations. Now require:
- an independent audit for PRS activity,
- prior permission for the running of premium phone services
- checks on communication of pricing and key conditions
- clear separation of PRS from editorial
For Mainstream Promoters
In the UK, t he main rules are covered by the CAP Code (Code of Advertising, Sales Promotion and Direct Marketing) administered by the ASA. Key points:
- Prize Draws – winners selected by chance & independently
- Instant Wins – winners distributed randomly, and supported by an independent audit statement
- Competitions – at least one independent judge
- Prize Winner lists – to be available upon request
All Promoters
Various general and specific laws, including :
The UK Gambling Act (2005) defines games of chance v skill
- “significant skill” test for pay to enter competitions
- Definitions of “no purchase to enter.......
The UK Consumer Protection Regulations (2008) prohibits 31 misleading or inappropriate marketing practices including:
- Use of word “free” or equivalent unless there is no cost
- Claiming to offer a prize, but failing to deliver
- Exhortations for children to buy the promoted product......
Promotions require independent supervision, but just who is independent?
Given the importance placed on the need to have winner selection or judging conducted independently, just who is defined as being “independent”. The CAP Sales Promotion & Direct Response Panel prepared this statement : “In addition to the usual and obvious exclusions e.g. employees and agencies, the Panel agreed that the definition of an independent observer should exclude anyone who either had a contractual relationship with the promoter or worked for a company that had a contractual relationship with the promoter. This definition would not exclude people or companies paid a fee to act as independent observers provided they could demonstrate their independence.”
In addition, the 12th edition of the CAP Code, released on 1st September 2010, states that " the judge or panel member must be demonstrably independent, especially from the competition's promotions and intermediaries and from the pool of entrants from which the eventual winner is picked."
So the promoter’s lawyers or marketing agency or handling house would not meet this requirement – nor would the computer in a technology supplier such as a text aggregator. So this is why we support the Campaign for Promotional Independence: by protecting consumers, we protect promoters too.
