Week 7 - Contests and Promotions.pptx

Week #7 Contests (Ch. 7) Main Topics and Learning Outcomes 7.1 - Explain the moral and legal principles for contests and promotions in Canada 7.2 - Discuss the marketer's legal responsibilities with hosting conte...

Week #7 Contests (Ch. 7) Main Topics and Learning Outcomes 7.1 - Explain the moral and legal principles for contests and promotions in Canada 7.2 - Discuss the marketer's legal responsibilities with hosting contests in Canada. 7.3 - Explain the marketer's need for legal counsel when hosting contests. Lotteries, Sweepstakes and Contests Video - Lotteries, Sweepstakes a nd Contests - Be Safe! Contests & Sweepstakes – What Can Go Wrong? Hold your Wee for a Wii  Video - News Story  The outcome was the death of a contestant and the radio station $16.5 million to the family Tim Hortons’ Roll Up The Rim To Win – Finders keepers, losers weepers!  Article Link  Tim Hortons decides in favour of the 10-year-old girl.  The other girl’s lawyer wanted a DNA sample Contests & Sweepstakes – What Can Go Wrong? Pepsi and the Harrier Jet  Commercial  Outcome  Beware of professional contestants that will exploit your contest loopholes. Dairy Farmers of Ontario – The Ticking Milk Bomb  Video - Moo You Win  Consumer thought it was a ticking bomb and bomb squad evacuated the Eaton’s Centre. Contests & Sweepstakes – What Can Go Wrong? Pepsi Philippines – “Coalition 349”  One of the largest marketing disasters that led to loss of life – Violence, injuries, and five deaths  Class action lawsuits  Video - The 90s Pepsi Contest That Turned Deadly  When you print winning numbers, be aware of the total winners associated with the winning number. Don't pick it if it was supposed to be the losing number! From the textbook, pages 131-139: Many examples of poorly executed contests and sweepstakes.  Beta test your contest before launch and look for loopholes. Ground Rules: The Basics  Contests and promotions are contracts between promoters and participants and are subject to a number of legal rules and guidelines.  Make the rules clear and concise. Poorly worded, and the courts will, in many cases, rule for the participant.  The Competition Bureau and the Competition Act Guidelines If your company is providing a contest or sweepstakes, the following:  Seek advice from a contest lawyer - Highly specialized and can advise provincially and nationally.  Fully disclose all the rules and ensure they can be easily understood from a consumer perspective. Also, post rules that can be easily found.  Fully disclose the number of prizes, the value, and the odds of winning.  State the timelines of the contest or sweepstakes  Ensure all winning prizes are awarded promptly with no delays.  Selection of participants or distribution of prizes are based on skill or by random chance. Example – Contest with ONE Prize ($250) An upcoming contest for a $250 gift card in Saskatchewan  Example - Contest Rules  See the rules? Thoughts on this contest? Contests: Violations of the Competition Act If your contest violates the Competition Act:  First-time offence is up to $750,000 for an individual  First-time offence is up to $10,000,000 for a corporation. If violated again, penalties increase to a maximum of:  $1,000,000 in the case of an individual  $15,000,000 in the case of a corporation Question - This was an Instagram sweepstakes during COVID-19 in April, 2020. Read it, what could go wrong? Class Activity  Create a contest for the class  Prepare the rules  Test out the concept  For the participants Can you find the loopholes? What could go wrong? Are there any weak points that the students can exploit?  Why You Need a Contest Lawyer?  Look at the contest rules online for your favourite restaurant or retailer. What do you see? The language can be a bit overwhelming.  Remember, it is a contract! You need to follow the law.