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Consumer Protection Act, 2008 (Act No. 68 of 2008)


Consumer Protection Act Regulations

11. Promotional competitions


1) For purposes of section 36(3)(a) of the Act, the reasonable cost of electronically transmitting an entry shall not exceed R1.50 (one Rand and fifty Cents).


2) The reasonable cost stated in subregulation (1) above includes the total cost for all subsequent electronic communication to the consumer in respect of that particular entry.


3) Any provision in the rules of a promotional competition requiring the prize winner to –
a) permit the use of his or her image in marketing material; or
b) participate in any marketing activity; or
c) be present when the draw is taking place or the winners are announced,

without affording him or her the opportunity to decline an invitation to do so or informing him or her of the right to decline such an invitation, is null and void.


4) The monetary threshold of prizes for the purpose of excluding competitions with low-value prizes from the definition of "promotional competition" for purposes of section 36(11)(a) of the Act is R1.00 (one Rand).


5) The promoter must ensure that an independent accountant, registered auditor, attorney or advocate oversees and certifies the conducting of the competition and must report this through the promoter's internal audit reporting or other appropriate validation or verification procedures.


6) For purposes of section 36(11)(b) of the Act and subject to subregulation (5), the person who conducts a promotional competition must, for a period of at least three years, retain—
a) full details of the promoter, including identity or registration numbers, as the case may be, addresses and contact numbers;
b) the rules of the promotional competition;
c) a copy of the offer to participate in a promotional competition contemplated in section 36(5);
d) the names and identity numbers of the persons responsible for conducting the promotional competition;
e) a full list of all the prizes offered in the promotional competition;
f) a representative selection of materials marketing the promotional competition or an electronic copy thereof, but such copy must be easily accessible in a generally available format;
g) a list of all instances when the promotional competition was marketed, including details on the dates, the medium used and places where the marketing took place;
h) the names and identity numbers of the persons responsible for conducting the selection of prize winners in the promotional competition;
i) an acknowledgment of receipt of the prize signed by the prize winner, or legal guardian where applicable, and his or her identity number, and the date of receipt of the prize, or where this is not possible, proof by the promoter that the prize was sent by post or other electronic means to the winner using his or her provided details;
j) declarations by the persons contemplated in paragraph (d) made under oath or affirmation that the prize winners were to their best knowledge not directors, members, partners, employees, agents or consultants of or any other person who directly or indirectly controls or is controlled by the promoter or marketing service providers in respect of the promotional competition, or the spouses, life partners, business partners or immediate family members;
k) the basis on which the prize winners were determined;
l) the summary describing the proceedings to determine the winners, including the names of the persons participating in determining the prize winners, the date and place where that determination took place and whether those proceedings were open to the general public;
m) whether an independent person oversaw the determination of the prize winners, and his or her name and identity number;
n) the means by which the prize winners were announced and the frequency thereof;
o) a list of the names and identity numbers of the prize winners;
p) a list of the dates when the prizes were handed over or paid to the prize winners;
q) in the event that a prize winner could not be contacted, the steps taken by the promoter to contact the winner or otherwise inform the winner of his or her winning a prize; and
r) in the event that a prize winner did not receive or accept his or her prize, the reason for his or her not so receiving or accepting the prize, and the steps taken by the promoter to hand over or pay the prize to that prize winner.


7) A promoter must upon request in writing by the Commission forthwith at his, her or its own expense submit a report based on documents or materials contemplated in subregulation (7) to the Commission.