What legal requirements apply to competitions and raffles within the framework of competition law?
March 13, 2023 | 30,00 EUR | answered by Sandra Bittner
Dear Sir or Madam,
My name is Greta Pasche and I am the owner of an online shop for fashion items. Lately, I have been receiving more inquiries from customers asking if I will be conducting giveaways or sweepstakes on my website. Since I would like to strengthen customer loyalty and attract new customers, I am very interested in such marketing activities.
However, I am unsure about the legal requirements that I need to consider. I have heard that there are certain rules under competition law that must be followed when conducting giveaways and sweepstakes. For example, I have heard that the terms and conditions must be clear and transparent, and that there are specific requirements for prize distribution.
My concern is that I may unknowingly violate current laws if I conduct a giveaway or sweepstake without a precise understanding of the legal requirements. I want to avoid being warned or even legally prosecuted.
Therefore, my question to you is: What are the specific legal requirements for giveaways and sweepstakes under competition law? Are there specific regulations that I must absolutely adhere to? How can I ensure that I comply with all legal regulations and that my giveaway is legally sound?
I thank you in advance for your assistance and look forward to your support on this important issue.
Best regards,
Greta Pasche
Dear Mrs. Pasche,
Thank you for your inquiry regarding the legal requirements for contests and giveaways under competition law. It is very important that as the owner of an online shop for fashion items, you are aware of the legal regulations in order to avoid potential legal consequences.
First and foremost, it is important to know that contests and giveaways are generally allowed as long as they are conducted fairly and transparently. In competition law, there are certain rules that must be followed when conducting contests to ensure fair competition.
One of the key requirements is that the terms and conditions of participation must be clear and transparent. This means that all conditions of participation, such as deadline for entry, contest period, eligibility, contest mechanism, and prize options, must be clearly and understandably communicated to participants. It is advisable to publish the terms and conditions prominently on your website so that all potential participants can easily find them.
There are also specific requirements for prize distribution. The prize must actually be offered and awarded. It is important that the selection of winners is done fairly and transparently to avoid any appearance of manipulation or fraud. Additionally, you must ensure that the prize is actually paid out or handed over.
To ensure that you comply with all legal regulations and that your contest is legally sound, I recommend consulting a lawyer specializing in competition law. A lawyer can help you draft the terms and conditions, plan the prize distribution, and ensure that your contest complies with legal requirements.
In summary, it is important as the owner of an online shop for fashion items to be familiar with and adhere to the legal requirements for contests and giveaways under competition law. By acting transparently and fairly, you can strengthen customer loyalty and attract new customers without violating any laws.
I hope this information has been helpful to you and I am available for any further questions.
Sincerely,
Sandra Bittner
Competition Law Attorney
