Marketing Chapter 7: Contests and Promotions in Canada

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Questions and Answers

What is the primary purpose of explaining moral and legal principles for contests and promotions in Canada?

To discuss the importance of lotteries and sweepstakes

To identify the need for legal counsel when hosting contests

To promote contests as a marketing strategy

To understand the marketer's legal responsibilities (correct)

What was the consequence of the radio station's contest in the 'Hold your Wee for a Wii' news story?

The contest was shut down by the government

The contestant won a prize

The radio station had to pay $16.5 million to the family (correct)

The radio station was sued for $10,000

What was the issue with the Tim Hortons' Roll Up The Rim To Win contest?

The contest was rigged

The contest was unfair to certain age groups

The prize was not attractive enough

There was a dispute over a winning ticket (correct)

What is a risk associated with hosting contests, as seen in the Pepsi and the Harrier Jet commercial?

Exploitation by professional contestants Signup and view all the answers

What was the outcome of the Dairy Farmers of Ontario's Ticking Milk Bomb contest?

The bomb squad was called to evacuate the Eaton's Centre Signup and view all the answers

What was the consequence of the 'Coalition 349' marketing disaster in Pepsi Philippines?

There were injuries, violence, and five deaths Signup and view all the answers

Why is it important to beta test a contest before launch?

To identify potential loopholes Signup and view all the answers

What is a key takeaway from the textbook examples of poorly executed contests and sweepstakes?

Look for loopholes and test the contest before launch Signup and view all the answers

Why is it important to seek advice from a contest lawyer when providing a contest or sweepstakes?

To avoid legal issues and ensure compliance with provincial and national laws Signup and view all the answers

What is the penalty for a first-time offence of violating the Competition Act as an individual?

$750,000 Signup and view all the answers

What is an important consideration when creating contest rules?

Ensuring the rules are clear, concise, and easily understood Signup and view all the answers

What is a key requirement for contests and sweepstakes?

Fully disclosing all the rules and ensuring they can be easily understood Signup and view all the answers

What should be stated in the contest rules?

All of the above Signup and view all the answers

What is the purpose of posting contest rules in an easily accessible location?

To ensure participants can easily understand the rules Signup and view all the answers

What should be done with winning prizes?

Awarded promptly with no delays Signup and view all the answers

Why is it important to test out a contest concept?

To identify loopholes and potential issues Signup and view all the answers

Study Notes

Contests and Promotions in Canada

Contests and promotions are contracts between promoters and participants, subject to legal rules and guidelines.
Clear and concise ground rules are essential; poorly worded rules can lead to courts ruling in favor of participants.

Legal Principles and Responsibilities

Marketers have legal responsibilities when hosting contests in Canada, including moral and legal principles.
Legal counsel is necessary when hosting contests to ensure compliance with laws and regulations.

Examples of Contests Gone Wrong

Hold Your Wee for a Wii: A radio station's contest led to the death of a contestant, resulting in a $16.5 million settlement to the family.
Tim Hortons' Roll Up The Rim To Win: The company favored a 10-year-old girl in a dispute, avoiding a DNA sample request from the other girl's lawyer.
Pepsi and the Harrier Jet: A commercial led to professional contestants exploiting loopholes in the contest.
Dairy Farmers of Ontario - The Ticking Milk Bomb: A consumer mistake led to a bomb squad evacuation at the Eaton's Centre.
Pepsi Philippines - "Coalition 349": A contest led to violence, injuries, and five deaths, resulting in class action lawsuits.

Guidelines for Contests and Sweepstakes

Seek advice from a contest lawyer to ensure compliance with provincial and national laws.
Fully disclose all rules, prizes, and odds of winning.
Post rules that can be easily found and understood by consumers.
Ensure winning prizes are awarded promptly with no delays.
Selection of participants or distribution of prizes must be based on skill or by random chance.

Consequences of Violating the Competition Act

First-time offenses can lead to fines of up to 750,000forindividualsand750,000 for individuals and 750,000forindividualsand10,000,000 for corporations.
Repeat offenses can lead to increased penalties, up to 1,000,000forindividualsand1,000,000 for individuals and 1,000,000forindividualsand15,000,000 for corporations.

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Description

This quiz covers the moral and legal principles for contests and promotions in Canada, including the marketer's legal responsibilities and need for legal counsel.