{"id":2065,"date":"2022-01-24T01:34:47","date_gmt":"2022-01-24T01:34:47","guid":{"rendered":"https:\/\/uk.legalvision.com.au\/?p=2065"},"modified":"2022-06-21T06:23:41","modified_gmt":"2022-06-21T05:23:41","slug":"legal-requirements-for-nationwide-trade-promotion","status":"publish","type":"post","link":"https:\/\/legalvision.co.uk\/regulatory-compliance\/legal-requirements-for-nationwide-trade-promotion\/","title":{"rendered":"What Are the Legal Requirements for a Nationwide Trade Promotion in England and Wales?"},"content":{"rendered":"<p><span style=\"font-weight: 400\">If you are running a business or a charity, you may be considering different ways of marketing your product or your brand. One effective way of doing so is running trade promotions. However, there are certain legal rules that you must comply with if you are planning on running a nationwide trade promotion in particular. Failure to comply with the rules can result in fines. This article will explain:\u00a0<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">what a trade promotion is;<\/span><\/li>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">some of the legal issues around running nationwide trade promotions; and\u00a0<\/span><\/li>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">how you can ensure that your trade promotion complies with all of the relevant laws.<\/span><\/li>\n<\/ul>\n<h2><span style=\"font-weight: 400\">What is a Nationwide Trade Promotion?<\/span><\/h2>\n<p><span style=\"font-weight: 400\">A trade promotion is simply a marketing tool designed to encourage potential customers to buy your product or service. A nationwide trade promotion is one that is open to all members of the public across the country to enter.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400\">Typically, a trade promotion can be in the form of a lottery or a competition. Lotteries and competitions have different rules.<\/span><\/p>\n<h2><span style=\"font-weight: 400\">What is a Lottery?<\/span><\/h2>\n<p><span style=\"font-weight: 400\">The legal term &#8216;lottery&#8217; has a technical definition in England and Wales. A lottery is a type of gambling and has three specific requirements:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">you must pay to enter the game;<\/span><\/li>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">there is at least one prize in the game; and<\/span><\/li>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">prizes are awarded purely by chance.\u00a0<\/span><\/li>\n<\/ul>\n<div class=\"box box--icon box--info\">\n<p><span style=\"font-weight: 400\">For example, lotteries are often in the form of a luck-based prize draw. If you are running your lottery as part of a nationwide promotion, or your lottery is part of the National Lottery, you will need to get a licence from the Gambling Commission.\u00a0<\/span><\/p>\n<\/div>\n<p><span style=\"font-weight: 400\">If you fail to get a licence from the Gambling Commission before carrying out your prize draw, then you may be subject to fines from the Gambling Commission. Therefore, it is important that you make sure you meet the regulatory requirements.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400\">If you are running a lottery, you will also want to be clued up on lottery laws. Running an illegal lottery can also mean that you are liable to fines from the Gambling Commission. One key responsibility that you have when running a lottery is that the purchase price of a ticket for the lottery must reflect the opportunity that a person has to win the total prize pool. If you are unsure whether your trade promotion lottery meets this requirement, it is a good idea to seek legal advice before continuing.<\/span><\/p>\n\n<a href=\"#content-next\"\n   class=\"block p-4 mt-10 text-xl font-bold text-center text-white no-underline bg-gray-800 rounded-t-xl\">\n    Continue reading this article below the form\n    <i class=\"text-xl fa-regular fa-arrow-down\"><\/i>\n<\/a>\n<div class=\"px-6 pt-10 pb-12 mb-10 text-center bg-gray-100 rounded-b-xl sm:px-12 test\">\n    <div class=\"mb-8 text-2xl font-bold text-orange\">\n        Need legal advice?\n        <br>\n        <span class=\"text-lg not-prose\">\n                            Call <a href=\"tel:+448081968584\" class=\"not-prose\">0808 196 8584<\/a> for urgent assistance.\n                <br>\n                Otherwise, complete this form, and we will contact you within one business day.\n                    <\/span>\n    <\/div>\n\n    \n\n<div class=\"not-prose flex justify-center text-left 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For a trade promotion to be a competition, it must involve some degree of skill or judgement. Some competitors must have an advantage over other competitors based on their:\u00a0<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">knowledge;\u00a0<\/span><\/li>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">expertise; or\u00a0<\/span><\/li>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">skill.\u00a0<\/span><\/li>\n<\/ul>\n<div class=\"box box--icon box--info\">\n<p><span style=\"font-weight: 400\">For example, suppose the game involves answering a series of trivia questions to have a chance of winning the prize pool. This is likely to be a competition rather than a lottery.<\/span><\/p>\n<\/div>\n<p><span style=\"font-weight: 400\">It is worth keeping in mind that for your game to be a competition, only one aspect of the game needs to require skill. For example, if you have a series of trivia questions followed by a luck-based prize draw, your game will still be a competition rather than a lottery because one aspect of the game involves a degree of skill.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400\">If your game is a competition rather than a lottery, you will not need to get a licence from the Gambling Commission. However, suppose you run a competition, and it later emerges that the competition did not require enough skill and was, in fact, more similar to a lottery. In that case, you may be subject to fines from the Gambling Commission.\u00a0<\/span><\/p>\n<div class=\"box box--icon box--idea\">\n<p><span style=\"font-weight: 400\">Therefore, it is a good idea to seek legal advice or contact the Gambling Commission if you are unsure whether your trade promotion is a lottery or a competition.\u00a0<\/span><\/p>\n<\/div>\n<h2><span style=\"font-weight: 400\">Key Takeaways<\/span><\/h2>\n<p><span style=\"font-weight: 400\">Running national promotions can be an effective way of carrying out a sales promotion by increasing the publicity of your brand or marketing your product to new customers. Trade promotions, such as trade promotion lotteries, can even increase your exposure to foreign investors and thus increase your business activities on the whole. However, you will want to make sure that you are familiar with regulatory requirements, such as lottery laws, if you plan to run a national trade promotion.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400\">It is a good idea to seek legal advice if you are considering running a nationwide trade or sales promotion, as you will want to avoid the chance of being fined by the Gambling Commission. If you need help with trade promotions, our <\/span><a href=\"https:\/\/legalvision.co.uk\/regulatory-compliance-lawyers-lp\/\"><span style=\"font-weight: 400\">experienced regulatory and compliance lawyers<\/span><\/a><span style=\"font-weight: 400\"> can assist as part of our LegalVision membership. For a low monthly fee, you will have unlimited access to lawyers to answer your questions and draft and review your documents. Call us today on <a href=\"tel:+448081968584\" class=\"AVANSERnumber dynamic-number\">0808 196 8584<\/a> or visit our <\/span><a href=\"https:\/\/legalvision.co.uk\/membership\"><span style=\"font-weight: 400\">membership page<\/span><\/a><span style=\"font-weight: 400\">.<\/span><\/p>\n<h2><span style=\"font-weight: 400\">Frequently Asked Questions<\/span><\/h2>\n\n\n<div class=\"schema-faq wp-block-yoast-faq-block\"><div class=\"schema-faq-section\" id=\"faq-question-1642987716887\"><strong class=\"schema-faq-question\">What is a lottery?<\/strong> <p class=\"schema-faq-answer\">A lottery is a game of pure chance, such as a luck based prize draw.<\/p> <\/div> <div class=\"schema-faq-section\" id=\"faq-question-1642987728998\"><strong class=\"schema-faq-question\">Can you run a lottery as a charity?<\/strong> <p class=\"schema-faq-answer\">Yes &#8211; running a lottery as a charity can be a good way of fundraising in the public interest. You may not have to get a licence if you are operating as a charity, so it is a good idea to seek professional legal advice as to your position when running a trade promotion.<\/p> <\/div> <\/div>\n<div class=\"not-prose m-feedback-prompt\">\n    <!-- Thumbs up\/down bar -->\n    <div class=\"m-feedback-prompt__main\">\n        <div class=\"m-feedback-prompt__title\">Was this article helpful?<\/div>\n        <div>\n            <!--span class=\"m-feedback-prompt__button--text\">Thanks!<\/span-->\n            <button type=\"button\" class=\"m-feedback-prompt__button m-feedback-prompt__button--yes\"\n                    data-analytics-link=\"feedback-prompt:yes\" aria-label=\"Agree\">\n                <i class=\"fa-regular fa-thumbs-up fa-3x\"><\/i>\n            <\/button>\n            <button type=\"button\" class=\"m-feedback-prompt__button m-feedback-prompt__button--no\"\n                    data-analytics-link=\"feedback-prompt:no\" aria-label=\"Disagree\">\n                <i class=\"fa-regular fa-thumbs-down fa-3x\"><\/i>\n            <\/button>\n        <\/div>\n    <\/div>\n\n    <!-- Feedback form -->\n    <div class=\"m-feedback-prompt__form\">\n        <div class=\"m-feedback-prompt__form--thanks \">\n            <div>Thanks!<\/div>\n            <p>\n                We appreciate your feedback \u2013 your submission has been successfully received.            <\/p>\n        <\/div>\n        <form id=\"contact-form\" class=\"m-feedback-prompt__form--form\" action=\"\" method=\"post\">\n            <input type=\"hidden\" id=\"authenticity_token\" name=\"authenticity_token\" value=\"9eb4f72322\" \/><input type=\"hidden\" name=\"_wp_http_referer\" value=\"\/api\/wp\/v2\/posts\/2065\" \/>            <input value=\"https:\/\/legalvision.co.uk\/regulatory-compliance\/legal-requirements-for-nationwide-trade-promotion\/\" type=\"hidden\" name=\"currenturl\"\n                   id=\"currenturl\">\n            <input value=\"What Are the Legal Requirements for a Nationwide Trade Promotion in England and Wales?\" type=\"hidden\" name=\"currenttitle\"\n                   id=\"currenttitle\">\n            <label>\n                <!-- display on thumbs-up -->\n                <span class=\"m-feedback-prompt__feedback m-feedback-prompt__feedback--yes\">\n                    Can you tell us <span class=\"font-semibold\">why<\/span> you found it helpful?\n                <\/span>\n\n                <!-- display on thumbs-down -->\n                <span class=\"m-feedback-prompt__feedback m-feedback-prompt__feedback--no text-lg\">\n                    How can we better improve this article?\n                <\/span>\n                <textarea name=\"feedbackmessage\" id=\"feedbackmessage\" required><\/textarea>\n            <\/label>\n\n            <div class=\"m-feedback-prompt__form--error\" id=\"form-submit-error\"><\/div>\n            <button id=\"submit-contact-form-button\" type=\"submit\" name=\"commit\" class=\"m-feedback-prompt__form--submit\"\n                    data-analytics-link=\"feedback-prompt:submit\">\n                Submit            <\/button>\n        <\/form>\n    <\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>If you are running a business or a charity, you may be considering different ways of marketing your product or your brand. One effective way of doing so is running trade promotions. However, there are certain legal rules that you must comply with if you are planning on running a nationwide trade promotion in particular.<a href=\"https:\/\/legalvision.co.uk\/regulatory-compliance\/legal-requirements-for-nationwide-trade-promotion\/\">Continue reading <span class=\"sr-only\">&#8220;What Are the Legal Requirements for a Nationwide Trade Promotion in England and Wales?&#8221;<\/span><\/a><\/p>\n","protected":false},"author":13325,"featured_media":549,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_relevanssi_hide_post":"","_relevanssi_hide_content":"","_relevanssi_pin_for_all":"","_relevanssi_pin_keywords":"","_relevanssi_unpin_keywords":"","_relevanssi_related_keywords":"","_relevanssi_related_include_ids":"","_relevanssi_related_exclude_ids":"","_relevanssi_related_no_append":"","_relevanssi_related_not_related":"","_relevanssi_related_posts":"2247,866,2039,2419,1719,2348","_relevanssi_noindex_reason":"","editor_notices":[],"footnotes":""},"categories":[32],"tags":[20,21,287,288,464,465],"class_list":["post-2065","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-regulatory-compliance","tag-small-business","tag-medium-business","tag-lottery","tag-competition","tag-trade-promotion","tag-nationwide-trade-promotion"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.1.1 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Legal Requirements for a Nationwide Trade Promotion | LegalVision UK<\/title>\n<meta name=\"description\" content=\"Are you thinking of running a nationwide trade promotion? 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