Consumer competitions are a popular marketing tool and, at the same time, an area where mistakes are most often made. The basis is a set of written rules published before the competition starts, containing the organiser, duration, conditions of participation, the method of determining the winner, an exact description of the prizes, how they will be handed over, and information on the processing of participants' personal data. Setting up the mechanics is critical: if the prize is decided purely by chance and entry requires a stake, it may amount to a game of chance subject to special regulation, so an element of skill or free entry is usually chosen instead. Do not forget the tax treatment of prizes and the rules of the platforms, which have their own requirements for competitions. Have the specific mechanics assessed by a lawyer before launch. Archive the rules together with the list of participants and a record of the draw, since disputes over a prize most often arise precisely when the selection of the winner cannot be proven.
See also: Comment moderation, Scarcity and urgency, Tax deductibility of advertising costs.
