Run a social media competition within the Consumer Protection Act

Check whether the rules apply

Section 36 covers competitions, games and similar schemes that distribute prizes by lot or chance in the ordinary course of business to promote goods or services, where a prize exceeds the threshold set by regulation. The regulations published in 2011 set that threshold at R1. A skill element does not by itself take a competition outside the section.

Do not charge people to enter

The promoter must not require consideration to participate, apart from the reasonable cost of sending an entry. The regulations cap the cost of electronically transmitting an entry at R1.50, and that cap also covers later electronic contact about the same entry. Requiring people to buy something at more than its ordinary price in order to enter is treated as requiring consideration.

Publish the information and keep records

The offer must state the benefit, the steps to enter, how results will be determined, the closing date, how results will be announced, where the rules can be obtained and where and when prizes can be collected. Rules must be prepared before the competition starts and given free on request.

Prizes may not go to directors, employees, agents or consultants of the promoter, or to suppliers connected to the competition. The regulations require independent oversight by an accountant, auditor, attorney or advocate, and records kept for at least three years. Conditions forcing winners to take part in publicity are void unless winners can decline and are told so. Check the current regulations before launch.

• Confirm whether the competition is a promotional competition.
• Keep entry free apart from capped transmission costs.
• Publish all required information with the offer.
• Write the rules before launch and arrange independent oversight.
• Exclude connected people and keep records for three years.