10 Tips for Conducting Contests in Canada

1. No Purchase Necessary interchangeably for games of chance, skill, or mixed skill and chance. An alternate method of entry is generally 7. Odds and Prize Information required, granting no-purchase entrants the same opportunity to win as those who made Both the rules and must disclose a purchase to play. (among other things) the odds of winning and the number and of prizes available to be won. 2. Skill-testing Question It is prohibited to award a prize (dispose of 8. Regional Allocation of Prizes property) by pure chance. A skill test is often required, especially in a sweepstakes / If prizes are targeted to specific regions, random draw. The most common skill test is (e.g. 1 prize available to be won in Ontario, a multi-part math question. 1 prize available to be won in Quebec) this allocation must be disclosed in the rules and contest advertising. 3. Contest Registration (Quebec) Quebec is the only province which requires 9. Taxes registration, and this applies where the total prize value exceeds $100. Sponsor must file Most prizes won by residents of Canada, if copies of the rules and advertising where awarded by a sponsor in Canada, will be the total prize value exceeds $2,000. Post- awarded as tax-free windfalls. Foreign tax contest reporting of winners may also be laws (e.g. U.S. withholding taxes) may required. Deadlines are driven by total prize nevertheless apply to residents of Canada value, and may be as much as 30 days prior depending on the prize, the sponsor, and to advertising/launching the contest. laws otherwise governing the contest in other jurisdictions. 4. Fees/Security (Quebec) 10. CASL/Canada’s Anti-Spam Law Where the contest is open to residents of Quebec, the sponsor must pay a fee at the Under legislation which came into force on time of registration. For multi-national July 1, 2014 express opt-in consent will contests, the duty payable is 0.5% of the generally be required to send entrants total prize value. Security may also be commercial electronic messages (e.g. required. Requirements and deadlines are email, text, and some social media driven by the prize value. communications) outside of the contest. Pre-checked boxes, or consent tied to entry into the contest, may not be sufficient for 5. Language future secondary . Consent should French is generally only required for the be obtained including prescribed disclosure rules and advertising materials if the contest requirements. is open to residents of Quebec.

6. Contest vs Sweepstakes? Catherine Bate “Sweepstakes” typically describes a Email: [email protected] where the winner is selected by Phone: 416.595.8582 random draw. “Contest” is often used @CathyBate