Sweepstakes in Canada

By: Sync Marketing | In: Marketing


Navigating Sweepstakes and Contests in Canada

Running sweepstakes and contests in Canada can be a powerful way for brands to engage with their audience and grow their market presence. However, if you’re planning to launch a promotion in the country, it’s important to be aware of the regional differences in regulations, especially when it comes to Quebec. Historically, Quebec has been a unique jurisdiction, with more stringent requirements for sweepstakes and contests compared to other provinces. But do you still need to file your promotion in Quebec? Let’s dive into the details of contest laws in Canada and the changes in Quebec’s filing requirements.

Canadian Sweepstakes and Contest Regulations

In Canada, promotions like sweepstakes and contests must comply with federal laws as well as the specific laws of each province. The federal Competition Act governs false and misleading advertising, which includes the structure of promotional contests. There are key requirements to keep in mind when running a contest in Canada:

  • No Purchase Necessary: This rule is crucial. You must offer a way to enter the contest without making a purchase to avoid the promotion being considered an illegal lottery.
  • Official Rules Disclosure: You must clearly state the rules of your contest, including eligibility requirements, start and end dates, and how the winners will be selected.
  • Skill-Testing Question: Winners must answer a skill-testing question (typically a basic math problem) to claim their prize, a rule that helps avoid the contest being classified as a lottery.

Quebec’s Sweepstakes and Contest Regulations

For many years, Quebec has stood out as a jurisdiction with stricter contest regulations. The Régie des alcools, des courses et des jeux (RACJ), the regulatory body overseeing promotional contests in Quebec, had requirements such as:

  • Filing the contest with the RACJ for approval.
  • Paying fees based on the total value of the prizes.
  • Posting a security deposit if the prize value exceeded a certain amount.
  • Adhering to specific rules regarding French language disclosures.

These requirements made Quebec a challenging province for some brands to include in national contests, prompting many promotions to exclude Quebec residents altogether.

Do You Still Need to File Promotions in Quebec?

The good news is that there has been a significant shift in the way Quebec handles sweepstakes and contests. As of June 2021, Quebec introduced several changes to make it easier for businesses to run promotions in the province. Under the new regulations:

  • Elimination of the Filing Requirement for Some Contests: You no longer need to file your promotion with the RACJ if the total prize value is below $100,000. This change has simplified the process for many small- and medium-sized promotions.
  • Streamlined Processes for Higher-Value Prizes: While contests with prizes exceeding $100,000 still need to be filed, the process has been streamlined to reduce the administrative burden.
  • Security Deposits Adjusted: Security deposit requirements have been revised, making it less expensive for brands to run higher-value contests.

Key Points to Keep in Mind When Running a Promotion in Quebec

Even though the filing requirements have been relaxed, there are still important factors to consider when running a contest in Quebec:

  1. French Language Requirements: Quebec’s Charter of the French Language mandates that all contest rules, entry forms, advertising, and communications must be provided in French.
  2. Transparency and Fairness: The RACJ continues to enforce the rules surrounding transparency, fairness, and proper disclosure of the contest’s terms and conditions.
  3. Prize Value Limits: If your total prize value is over $100,000, you still need to file the promotion and pay a filing fee based on the prize value.

The Benefits of Including Quebec in Your Sweepstakes

The recent regulatory changes in Quebec open up new opportunities for brands to engage with the province’s residents, which is important because Quebec represents about 23% of Canada’s population. By including Quebec in your promotions, you can expand your reach and potentially see a greater return on investment. With fewer regulatory hurdles to clear, running national contests that include Quebec is now much more feasible and cost-effective.

Conclusion

Running sweepstakes and contests in Canada can offer significant brand engagement opportunities, and recent changes in Quebec’s regulations have made it easier than ever to include Quebec residents in your promotions. While there are still specific rules to follow, the elimination of mandatory filings for promotions under $100,000 is a game-changer for businesses. By staying compliant with both federal and provincial regulations, including Quebec’s French language requirements, you can confidently launch your next sweepstakes or contest across the entire country.

So, when you’re planning your next promotion in Canada, don’t hesitate to include Quebec in your strategy—its doors are now open wider for business!

(This article is not legal advice. Please consult Sync Marketing directly for the latest rules and regulations)


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