These Free Prize Draw Terms and Conditions are designed for use by private
companies who wish to run free prize draws for consumers (adults aged 18 or
over), for example, for promotional purposes. This document is not designed for charities.
Please note that due to differences in laws regulating prize draws and
sweepstakes in Northern Ireland, these Terms and Conditions are not
suitable for use there and should be used only in England, Wales, or
Regulation under the Gambling Act 2005
Certain types of prize draws and competitions are regulated by the
Gambling Act 2005. Free prize draws are not. The prize draws for which
this document is designed, therefore, are not regulated by the Gambling
Care must be taken, however, if you wish to alter the terms of the template
to the extent that payment is required. If payment is required to enter the
draw or to collect the prize, it will become a “lottery” and will be
subject to the Gambling Act, subject to some exceptions:
Normal expenses incurred by entrants at normal rates (i.e., not premium
rates) for postage, telephone, etc., are not classed as a payment to enter.
It is also possible to avoid your prize draw from being classified as a
lottery if there is a free entry route in addition to the paid entry route.
The free entry route must be publicised so that it is likely to come to the
attention of anyone wishing to participate in the draw and the system for
allocating prizes must not distinguish between the free and paid routes.
Following recent legal action brought by the Advertising Standards
Authority against a well-known promoter, it is strongly recommended that
free and paid entry routes for prize draws are displayed with equal
The CAP Code and Other Regulations
Sales promotions, including prize draws, are regulated by Section 8 of the
UK Code of Non-broadcast Advertising, Sales Promotion and Direct Marketing.
This is known as the CAP Code and can be accessed
. These Terms and Conditions are designed to provide the information
required by the CAP Code. Please also note that additional rules apply to
prize draws targeted at children. This document is not designed for prize
draws aimed at under-18s.
Other rules specific to certain industries or types of media may also apply
to a prize draw. One example is prize draws which involve premium rate
telephone services. In these cases, promoters must also comply with the
Phone-paid Services Authority (PSA) Code and, if applicable, the special
conditions set out by the PSA for online competitions. The PSA Code and
special conditions can be accessed
Depending on the nature of the proposed prize draw, this can be a complex
area and great care is required. Professional legal advice should always be
sought in the event of any doubt.
The CAP Code and the Terms and Conditions
These Free Prize Draw Terms and Conditions have been drafted to assist in
compliance with the CAP Code:
Entry restrictions are incorporated (e.g., age restrictions).
Instructions on how to enter the prize draw are provided, including
applicable conditions and a cap on the number of entries per person (or
Starting and closing dates are set out.
The “mechanism” of the prize draw is explained, and options are
included for different methods of picking winners.
Space is provided for a description of the prize or prizes. Detailed
descriptions should be given here, including the number of prizes to be
given (or a reasonable estimate of the number if it cannot be
predetermined). It is also important to explain if prizes are to be
shared among multiple winners and if any prize is to be received by
winners in instalments.
The terms explain how prize winners will be informed of the results of
the draw. The CAP Code states that promoters may only withhold prizes
if the qualifying criteria are clearly set out in the terms and
conditions. In this case, entrants are required to respond to the
promoter within a certain period of time, providing their delivery
address for their prize. If a prize winner does not respond, the
promoter may award the prize to another entrant.
Time limits are left for promoters to determine in the template, and
must be handled with care. Under the CAP Code, if a prize winner will
have to wait for more than 30 days after the closing date of the draw,
the date by which the prize will be received must be set out before or
at the time of entry. The time limits and dates in these terms and
conditions are designed to do that.
The template terms allow for prize substitution if events beyond the
control of the promoter necessitate it. Under the CAP Code, promoters
must avoid causing unnecessary disappointment. The terms and conditions
therefore require a substitute prize that is of equal or greater value
than the original.
The CAP Code requires that promoters publish or otherwise make
available information to indicate that a valid award has taken place.
Typically, such information consists of the surname and county of
“major prizewinners” and, where applicable, their winning entries.
These terms and conditions explain that and also allow for prize
winners who wish to object, but nevertheless explain that the
information must be made available to the Advertising Standards
Authority on request. (Note that this document does not address the use
of entrants’ details in publicity materials. Consent to do this must be
obtained from the individuals concerned.)
Other key provisions in these Terms and Conditions deal with important
topics such as the limitation of liability and data protection. Note that
the limitation of liability clause is worded to be fair to consumers and
does not seek to limit or exclude liability which cannot be limited or
excluded by law.
Optional phrases / clauses are enclosed in square brackets. These should be
read carefully and selected so as to be compatible with one another. Unused
options should be removed from the document.
These Free Prize Draw Terms and Conditions contain the following clauses:
1. Definitions and Interpretation
2. Prize Draw Entry Rules
3. Opening and Closing Date
4. How to Enter the Prize Draw
5. The Prize Draw
6. Limitation of Liability
7. Privacy and Personal Data
8. Law and Jurisdiction
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