Prize draws can be a very effective marketing tool for any business and may
be particularly useful at present as businesses begin to open their doors
to consumers once again as Covid restrictions begin to ease.
There are many different kinds of prize draws, competitions, and lotteries,
and different rules apply to each. The most important piece of legislation
in many cases is the Gambling Act 2005; however, free prize draws (or those
which have both a paid and free entry route) are not subject to that Act.
The key rulebook to follow in this case is known as the CAP Code or, to
give it its full name, the UK Code of Non-broadcast Advertising, Sales
Promotion and Direct Marketing. The CAP Code regulates sales promotions,
including prize draws, and can be accessed
It is important that you understand the requirements of the CAP Code before
running a free prize draw to ensure that your draw complies with the rules
and is conducted fairly and transparently. Having a set of terms and
conditions in place is an important part of this.
New Template for Free Prize Draws
Our new set of Terms and Conditions for Free Prize Draws is 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. Please
note that it is not designed for use by a charity.
This new document has been written to assist in compliance with the CAP
Code and provides information on a number of key aspects of your prize draw
Entry instructions, conditions, and restrictions.
Important dates and time limits.
- An explanation of the mechanism of the prize draw.
- Details about prizes (which should include the number and nature of the
- Information about claiming prizes.
- The use of prize winners’ information for compliance with CAP Code
The contents of this Newsletter are for reference purposes only and do not constitute
legal advice. Independent legal advice should be sought in relation to any specific