Promotional competitions create legal obligations through the promises made to consumers and the conditions on which they are invited to participate. For South African and international brands conducting campaigns in African markets, those obligations require attention from the initial design of a promotion through to the award of prizes. The applicable rules, the advertised offer and the process followed by the campaign team must be considered together.
A winner outside the rules
A January 2025 ruling by the UK’s Advertising Standards Authority illustrates the consequences of overlooking that connection. Royalux Competitions offered a £5,000 garden makeover and £2,000 cash. The prize went to the garden supplier’s brother, although the original eligibility rules excluded him. The promoter subsequently amended the rules to allow him to retain it.
Royalux relied on its reserved power to change the terms, but the regulator found that retrospectively removing the exclusion was unfair to participants. The complaint was upheld. The ruling concerned UK advertising rules, yet the underlying administrative failure is relevant to brands running promotions in any market.
South African requirements
In South Africa, section 36 of the Consumer Protection Act 68 of 2008 (“CPA”) and regulation 11 govern qualifying promotional competitions. The statutory definition includes qualifying promotions distributing prizes by lot or chance, even where some skill is also required. The first task is to classify the proposed promotion correctly.
Rules must be prepared before launch and made available without charge on request. The offer must communicate the required information, including the participation steps, the basis for determining results and the closing date. Eligibility checks must address the published rules and statutory exclusions, including specified people connected with the promoter and suppliers involved in the competition.
The regulations to the CPA require an independent accountant, registered auditor, attorney or advocate to oversee and certify the competition’s conduct. Prescribed records must be retained for at least three years. These arrangements should be incorporated into the campaign plan, with responsibility allocated for verifying selected entrants and recording prize delivery.
Winner publicity requires separate care. Provisions compelling winners to participate in marketing or permit use of their images, without an opportunity to decline and information about that right, are invalid under the regulations. A proposed photograph or testimonial should therefore be considered before it is included in the campaign’s promised deliverables.
Campaigns extending into other African markets
A South African compliance review cannot establish that the same promotion is lawful elsewhere. Kenya’s Gambling Control Act 2025, for example, contains a broad definition for the term “gambling” which would include prize competitions, media promotions with prizes and expressly provides for licensing prize competitions, with national and county responsibilities depending on their geographic reach. A campaign intended for several African markets therefore needs an assessment of its classification and any approval requirements in each relevant jurisdiction.
That assessment should be based on the proposed entry mechanism and eligible participants, rather than only the location of the brand owner or agency. Country eligibility must be clear in the advertising and terms, particularly where a regional social media account promotes the campaign. Different prize arrangements or local conditions may require corresponding changes to the operating instructions.
Allocating responsibility before launch
For an international brand using local agencies or distributors, the division of responsibilities needs to be clearly documented. South Africa’s definition of a promoter extends beyond the person administering the draw to include those for whose benefit the competition is conducted. Appointing an agency therefore does not, by itself, resolve the brand’s compliance exposure.
Legal review should cover the campaign mechanics and supporting materials, with a workable process for eligibility checks, complaints and exceptional circumstances. Any proposed change after launch requires assessment against participants’ existing rights and the applicable law. Royalux demonstrates the difficulty of trying to repair an eligibility problem by rewriting the rules after the result.
KISCH IP’s Commercial Department assists brands, agencies and in-house counsel with promotional competition structures, terms and administration requirements. Kevin Dam and the team can advise on South African promotional competition compliance and help identify the local advice required for campaigns extending into other African markets.
