Canadian contests must avoid being an illegal lottery, which is why the skill-testing question and the no-purchase entry route exist. Beyond that, competition law requires specific disclosure, privacy law governs the entries, and platform rules apply on top.

Why the requirements exist

Understanding the reason makes the rules easier to remember.

The Criminal Code restricts lotteries, which broadly means a prize distributed by chance where entrants provide something of value. Running one without authorisation is an offence.

A promotional contest avoids that by removing one of the elements. The two standard mechanisms are introducing a genuine element of skill, which is what the skill-testing question is for, and removing the consideration by offering a free entry route.

Most contests use both, which is why nearly every Canadian promotion you have entered included a mathematical question and a no-purchase-necessary line.

The skill-testing question

Not a formality and not decorative.

It has to be answered correctly by the winner before the prize is awarded, and it should be a genuine arithmetic question rather than something trivial. The convention is a multi-step calculation, answered without assistance and within a reasonable time.

Where the contest already involves genuine skill, such as a judged photograph or written entry, the question may be unnecessary. Because what qualifies as skill is not always clear-cut, many organisers include it regardless.

The free entry route

Where entry requires a purchase or anything of value, an alternative free method has to be available and it has to be genuine.

Genuine means equally accessible and offering the same chance of winning, not a route so obscure or burdensome that nobody uses it. Burying it in the rules while the paid route is on every page is the pattern to avoid.

Whether social media actions such as following, sharing, or tagging constitute consideration is not entirely settled, which is a reason many organisers include a free entry route regardless.

Disclosure requirements

Competition law requires adequate and fair disclosure, and this is where small business promotions most often fall short.

Crucially, that disclosure has to be available without an entrant having to take active steps to obtain it. Rules hidden behind a request are not adequate disclosure.

The standard arrangement is short rules on the promotional post itself covering eligibility, the prize, the closing date, and where to find the full rules, with the full rules on a page of their own.

What the full rules should contain

Written before launch rather than assembled afterwards.

Who may enter, including age and geographic eligibility and any exclusion of employees. How to enter and the free route. The entry period with dates and times including timezone. The prize, described precisely with its approximate value. How and when the winner is selected and notified. The skill-testing question requirement. What happens if a winner does not respond. Whether the prize is transferable or exchangeable. And who is running it, with contact details.

Also worth stating: that you may need to use the winner's name, and on what basis, since announcing a winner involves personal information.

Quebec, and a recent change

Historically Quebec operated a separate registration regime through its regulator, requiring filing of rules, duty fees based on prize value, and in some cases a bond. That complexity is why a large proportion of national contests excluded Quebec residents entirely.

Those publicity contest provisions were repealed in late 2023, which removed the registration and fee requirement for most contests. A great deal of guidance published before that date still describes the old regime, which is worth knowing when reading anything on this subject.

What has not gone away is Quebec's language requirements. Where a business is subject to the Charter of the French Language, contest rules and promotional materials need to be available in French and entrants must be able to participate in French.

Given that the position changed recently, confirming the current requirements before running anything open to Quebec is worth doing rather than relying on a summary.

Privacy and the entries

An entry list is personal information, collected for a stated purpose.

That purpose is running the contest. Adding entrants to a marketing list requires its own clear opt-in at the point of entry, unticked and separate, rather than being bundled into the act of entering.

The rules should say what will be collected, what it will be used for, and how long it will be kept. Deleting the entry data after the contest concludes, apart from what you need to keep as a record, is both good practice and less to protect.

Platform rules

A separate layer that applies regardless of the law.

Social platforms have their own promotion guidelines, which typically require acknowledging that the platform is not involved, and which restrict certain mechanics such as requiring people to share to a personal timeline or to tag people who are not present.

These change, and breaching them risks the account rather than legal consequence, which for a business with an established page is a real cost.

The proportionate view for a small business

A modest local giveaway is achievable with care: written rules on a page, a skill-testing question, a free entry route, honest disclosure, and a decision about Quebec.

Anything with a substantial prize, a national audience, or a complex mechanic is worth putting in front of a lawyer, because the cost of that review is small against the cost of getting it wrong.

This is a general description rather than legal advice, requirements differ and change, and the recent Quebec change is a good illustration of why checking current sources matters. The consent side of collecting entries is covered in keeping records of marketing consent.

Frequently asked questions

Why do Canadian contests need a skill-testing question?

Because the Criminal Code restricts lotteries, broadly a prize distributed by chance where entrants provide value. Introducing genuine skill removes one of the elements.

Is a free entry route required?

Where entry requires a purchase or anything of value, yes, and it must be genuine: equally accessible with the same chance of winning rather than buried in the rules.

What disclosure is required?

The number and approximate value of prizes, any regional allocation, and information relevant to the chances of winning, available without an entrant taking active steps to obtain it.

What changed in Quebec?

The publicity contest provisions requiring registration with the regulator and duty fees were repealed in late 2023. Language requirements under the Charter of the French Language still apply.

Can I add contest entrants to my mailing list?

Only with a separate unticked opt-in at the point of entry. The entry data was collected for running the contest, which is a different purpose from marketing.

Do platform rules matter?

Yes, separately from the law. Social platforms restrict certain mechanics and require acknowledging they are not involved, and breaching them risks the account.

West Coast Media Solutions Inc. provides web design, web development, hosting, digital marketing, and business consulting to organisations across Canada, drawing on more than twenty-five years in the field.

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