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Subscribe to our
bi-monthly
HPASA newsletter. |
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April 2011
DO YOU
USE COMPETITIONS TO ATTRACT
CUSTOMERS? WHAT THE CONSUMER
PROTECTION ACT SAYS |
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It’s not so simple any more. The Consumer
Protection Act became fully operational
on 01 April 2011 and deals specifically
with promotional competitions by imposing
a series of requirements for:
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| (i) |
What should be included
in competition rules; and |
| (II) |
What information and documentation
should be retained after the competition
was finalized |
A person conducting
a competition needs to know, amongst
other things, that:
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| • |
Where entry to
the competition is gained by
sending an sms, the price of
such sms may not cost more than
R 1,50; |
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A prize winner must be given
the opportunity to refuse (i)
that their photograph be used;
(ii) to be involved in any marketing
of the promoter of the competition;
or (ii) to be present when the
draw takes place, failing which
the competition is null and
void. |
| • |
The rules of the competition,
details of the persons conducting
the competition, list of places
where the competition was marketed
and the mediums used, list of
persons who selected the prize
winners, summary of proceedings
where prize winners were determined,
together with other prescribed
information, must be kept for
a period of 5 years. |
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Competition promoters may
also be required to report on
aspects of the competition to
confirm compliance with the
Act and furnish the Consumer
Commission with this information
on demand. |
In addition, the regulations require
that competitions must be conducted
under the supervision of a chartered
accountant, registered auditor, admitted
attorney or advocate and must be reported
on through the competition promoter's
internal audit reporting.
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