Running Promotions in South Africa
In the latest instalment of our series of country guides, Head of Legal Jorja Knight takes a quick look at running promotions in South Africa.
Nobody debates the natural appeal of South Africa, with the waterfront at Cape Town and the stunning beauty of rural safari bathed in the baking sun. Yet, lying at the base of the African continent, there is another, different appeal. A gaping market, with a rapidly growing population to promote towards, with over 10 million more people residing there than at the turn of the millennium. Promotions have the potential to draw immense success and excitement, provided one ensures they run it right, avoiding legal problems.
Here are just a few of the quirks under South African law with regard to running promotions, whether it be prize draws, competitions or instant wins.
- Some countries refuse to engage in shared prize funds and pools – meaning that the law states promotions cannot run there without the winner being from that country – South Africa however, is unfussed by this, with the law permitting shared prize pools, helping to create a more global promotion – with more exposure and popularity
- But, be careful here – failure to comply with privacy and consumer protection laws can be very costly indeed – with not only civil but potentially criminal liabilities. Although, with the right advice and support this will not be a problem.
Over the years, PromoVeritas has frequently done business within South Africa. It is clear that many businesses view South Africa as a popular and attractive area to run promotions, potentially seeking to stimulate competition through games of skill, or to provide immediate joy to those who are successful in an instant win. The main problems are that of legal hurdles, which PromoVeritas are more than well-equipped enough to jump over, enabling you to deal with anything from possible tax ramifications to what type of gifts you are allowed to provide.