Codes and Law
There are numerous laws and codes to be considered – lawyers and specialist agencies may know the details of these rules, and you may have compliant terms and conditions, but rarely will a lawyer get involved in the most vulnerable aspect of any promotion – the implementation, actually delivering it, and making it happen. That is what PromoVeritas does.
For Radio & TV Broadcasters
Ofcom and PhonePayPlus regulations. Now require an
- independent audit for PRS activity,
- prior permission for the running of premium phone services
- checks on communication of pricing and key conditions
- clear separation of PRS from editorial
For Mainstream Promoters
The main codes are the CAP Code ( Code of Advertising, Sales Promotion and Direct Marketing) as administered by the ASA.
This requires :
- Prize Draws – winners selected by chance & independently
- Instant Wins – winners distributed randomly, and supported by an independent audit statement
- Competitions – at least one independent judge
- Prize Winner lists – to be available upon request
All Promoters
Various general and specific laws, including :
The Gambling Act of 2007 - defines games of chance v skill
- “significant skill” test for pay to enter competitions
- Definitions of “no purchase to enter.......
The Unfair Trading Regulations of 2008
Prohibits 31 misleading or inappropriate activities including
- Certain uses of word “free” or equivalent
- Claiming to offer prize, but failing to deliver
- Exhortations for children to buy the promoted product......
Be Aware of New Laws - The Unfair Trading Regulations May 2008 Click for more
These rules will affect most types of promoters, broadcasters and other media. Please ensure that you are aware of the key points of this important new law.
But just who is independent ?
Given the importance placed on the need to have winner selection or judging conducted independently, just who is defined as being “independent”. The CAP Sales Promotion & Direct Response Panel prepared this statement in 2007 : “In addition to the usual and obvious exclusions e.g. employees and agencies, the Panel agreed that the definition of an independent observer should exclude anyone who either had a contractual relationship with the promoter or worked for a company that had a contractual relationship with the promoter. This definition would not exclude people or companies paid a fee to act as independent observers provided they could demonstrate their independence.”
So the promoter’s lawyers or marketing agency or handling house would not meet this requirement – nor would the computer in a technology supplier such as a text aggregator. So this is why we support the Campaign for Promotional Independence: by protecting consumers, we protect promoters too.
