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Debra
Debra, Lawyer
Category: Canada Law
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Experience:  Lawyer
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I have a small business and I want to run a promotion. I

Customer Question

I have a small business and I want to run a promotion. I have bought tickets on a charitable car giveaway and would like to have a draw at my shop where you could win a draw ticket. How should I word my advertising as I am not giving away a car just a chance on winning a ticket for a car draw.
I am in Manitoba Canada
Thanks
Submitted: 11 months ago.
Category: Canada Law
Expert:  Debra replied 11 months ago.

Hello! My name is***** you for your question. I'm reviewing it now, and will post back again shortly.

Expert:  Debra replied 11 months ago.

Do you understand the law about lotteries?

Customer: replied 11 months ago.
No thats why I asked you
Expert:  Debra replied 11 months ago.

You are actually asking about advertising the draw but this is by far more complicated than this.

There are legal considerations to take into account when running a contest.

The main concern is that you do not want to breach a Criminal Code provision.

Paragraphs 206(1)(a) to (d) of the Criminal Code prohibit schemes for disposing of property by “any mode of chance”. Supreme Court of Canada has clarified that only games of “pure chance” are prohibited.

A proper skill-testing question converts a game of pure chance into a game of mixed chance and skill. So, this is how you get around the provision.

Also,the section 206(1)(f) makes it unlawful to charge for a contest even when it's one of mixed chance and skill so this has to be a no purchase necessary endeavour.

Also,you need to provide the full contest rules and make sure you are providing fair and adequate disclosure. This would include setting out the number and approximate value of the prizes, the areas to which the prizes relate and any facts that you know of that affect the chances of winning.

There are special rules if the contest is going to run in Quebec.

As well, if you are not a charity you need to obtain a licence.

In terms of the ad you have to make sure that they know the draw is for a ticket for another draw and you should say it is not the draw for the car.

Does that help as a starting point?

Please feel free to post back with any follow-up questions you may have. If you don't have any then I hope I have earned a 5 star rating but if you don't feel that I have please don't hesitate to reply back and let me know what more I can do to assist you. Finally, please know that even after you rate me I will be here for you and you can ask follow-up questions if you think of them later on at no further charge of course.

Expert:  Debra replied 11 months ago.

Is there anything more I can help you with at this point in time?

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