Competition Bureau Guidance on Promotional Contest Transparency
Summary
The Competition Bureau of Canada has issued guidance reminding businesses and influencers that promotional contests must provide honest and transparent information to consumers. Key details such as prize value, regional allocation, purchase requirements, and winner selection methods must be clearly disclosed.
What changed
The Competition Bureau of Canada has issued guidance clarifying requirements for promotional contests. Businesses and influencers are reminded that they must provide consumers with honest and transparent information regarding contests, including the number and value of prizes, regional prize allocation, any purchase requirements, how winners are selected, and easy access to contest rules. False or misleading claims about contests are prohibited.
Businesses and influencers operating promotional contests in Canada must ensure compliance with these transparency requirements. Consumers encountering deceptive contests are encouraged to report them to the Competition Bureau. While this guidance does not impose new legal obligations, it serves as a reminder of existing provisions under competition law, and non-compliance could lead to enforcement actions.
What to do next
- Review existing promotional contest materials for compliance with disclosure requirements.
- Ensure all new promotional contests clearly state prize details, purchase requirements, and winner selection methods.
- Provide easy access to full contest rules without requiring a purchase or personal information.
Source document (simplified)
Promotional contests: Businesses owe consumers honest information
From: Competition Bureau Canada
News release
Promotional contests: Businesses owe consumers honest information
February 17, 2026– GATINEAU, QC – Competition Bureau
February 17, 2026– GATINEAU, QC – Competition Bureau
In Canada, you’ll find promotional contests all year-round, from “enter to win” draws at your grocery store or local coffee shop to social media giveaways from your favourite brands and influencers. Consumers should be cautious of contests that lack transparency or that require unnecessary steps to access contest details.
A promotional contest is any contest, lottery, or game where a business or influencer gives away a product or benefit through chance, skill, or a combination of both.
For any contest you enter, the following information must be provided:
- Number and value of prizes: Businesses should clearly state how many prizes are available and their approximate market value. If the exact value isn’t known, they should provide examples or a reasonable value range.
- Regional prize allocation: Some contests award prizes separately by province or region. If that’s the case, especially in a nationally advertised contest, the business should make this clear.
- Any purchase requirements: If entering the contest requires buying a product or service, this should be prominently disclosed so consumers understand the conditions upfront.
- How winners are selected: The contest rules should explain whether winners are chosen randomly or through a legitimate skill-based method.
- Easy access to contest rules: All essential contest information should be easily available. You shouldn’t have to visit a store, make a purchase, modify a product, or hand over personal information just to find out how the contest works. Businesses and influencers are not allowed to make false or misleading claims about their contests. Details about contests must be true and displayed upfront.
If you believe you’ve encountered a contest that seems deceptive, you can report it to the Competition Bureau by calling our toll-free line at 1-800-348-5358 or by using our online form.
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The Competition Bureau is an independent law enforcement agency that protects and promotes competition for the benefit of Canadian consumers and businesses. Competition drives lower prices and innovation while fueling economic growth.
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