Government Gazette

Vol. 413, No. 20610, 5 November 1999

Regulation Gazette, No. 6669

No. R. 1320

GOVERNMENT NOTICE

DEPARTMENT OF TRADE AND INDUSTRY

LOTTERIES ACT, 1997 (ACT No. 57 OF 1997)

REGULATIONS REGARDING PROMOTIONAL COMPETITIONS, 1999

The Minister of Trade and Industry has, after with the National Lotteries Board, under section 54(2) of the Lotteries Act, 1997 (Act No. 57 of 1997), made the regulations in the Schedule.

SCHEDULE

Definitions

1. In these regulations, unless the context indicates otherwise, any word or expression defined in the Lotteries Act, 1997 (Act No. 57 of 1997) has that meaning and -

"advertising material" excludes references to a promotional competition printed or displayed on any individual item of the goods which are promoted by that competition and which are for sale to the public;

"goods or services" means goods or services which are ordinarily manufactured, sold, supplied, distributed or delivered or in any other way form a substantial part of the businesses of the promoters involved in a particular promotional competition in the calendar year during which that promotional competition is held;

"promoter" means a person who holds, conducts, promotes, organises or is in any other way associated with the management or execution of a promotional competition;

"the Act" means the Lotteries Act, 1997 (Act No. 57 of 1997)

Minimum age of participants

2. (1) A promoter may not offer or award a prize or any other benefit comprising or consisting of or involving goods or services which may not, whether determined by law or in consequence of any applicable code of ethics or conduct or agreement or any applicable rules or standards determined by a particular profession or its professional body or association,

1. be sold, rendered, supplied, distributed or delivered to a person under a specified age;
2. be used by a person under a specified age; or
3. in any other way benefit a person under a specified age,

to a person under the age so specified in respect of the particular goods or services.

(2) Advertising material in respect of a promotional competition or goods used for advertising purposes which offer or award goods or services contemplated in subregulation (1) shall not be directed at persons under the age contemplated in subregulation (1) in respect of those particular goods or services.

Value of prizes and number of promotional competitions

3. (1) Subject to subregulations (3), (4) and (5) and regulations 4, 5, 6 and 7, the maximum value of prizes offered or awarded in respect of promotional competitions held by a promoter during a calendar year without the assistance or support of or not in association with another promoter, shall -

1. if less than 75 per cent of the number or value of the prizes consist of goods or service's, in total not exceed R1 000 000 in a year, irrespective of the number of promotional competitions held in that year;
2. if -

1. at least 75 per cent of the number or value of the prizes consist of goods or services;
2. the value of each prize contemplated in subparagraph (i) which may be won' in a promotional competition equals the vague which is ordinarily paid by the public for an item or instance of those goods or services during the period in which that competition is held, and
3. not more than 10 promotional competitions are held by the promoter during that year,

not exceed R1 000 000 per promotional competition;

1. if -'

1. the prizes consist solely of goods or services; and
2. the value of each prize contemplated in subparagraph (i) which may be won in a promotional competition equals th'e'value which is ordinarily paid by the public for an item or instance of those goods or services during the period in which that competition is held,

not exceed R1 000 000 per promotional competition in a calendar year, irrespective of the number of promotional competitions held in that year.

(2) Subject to subregulations (3), (4) and (5) and regulations 4, 5, 6 and 7, the maximum value of prizes offered or awarded in respect of promotional competitions held by a promoter during a calendar year in association or jointly with or in support of another promotional competition or in respect of or for the benefit of more than one promoter, shall -

1. if less than 75 per cent of the number or value of the prizes in any promotional competition in which any of the promoters are involved in that year consist of goods or services to which each promoter involved in that competition contributes at least 15 per cent of the value of the prizes, in total not exceed R1 000 000 in that year, irrespective of the number of promotional competitions in which any of the promoters are involved in that year;
2. if -

1. at least 75 per cent of the prizes in any promotional competition in which any of the promoters are involved in that year consist of goods or services to which each promoter involved in that promotional competition contributes at least 15 per cent of the value of the prizes;
2. the value of each prize contemplated in subparagraph (i) which may be won in a promotional competition is similar to the value which is ordinarily paid by the public for an item or instance of those goods or services during the period in which that competition is held; and
3. no promoter is involved during that year in more than 2 promotional competitions,

not exceed R1 000 000 per promotional competition;

3. if -

1. the prizes in any promotional competition in which any of the promoters are involved in that year consist solely of goods or services to which each promoter contributes at least 15 per cent of the value of the prizes; and
2. the value of any prize contemplated in subparagraph (i) which may be won in promotional competition is similar to the value which is ordinarily paid by the public for an item or instance of those goods or services during the period in which that competition is held; and
3. no promoter is involved during that year in more than 10 promotional competitions,

not exceed R1 000 000 per promotional competition.

(3) (a) For purposes of these regulations, a promoter who at any time during a calendar year holds a promotional competition in association or jointly with or in support of another promotional competition or in respect of or for the benefit of more than one promoter, shall in respect of all promotional competitions held by him, her or it during that calendar year, be deemed to conduct all his, her or its promotional competitions in association or jointly with or in support of another promotional competition or in respect of or for the benefit of more than one promoter.

2. Subregulation (2) shall be applied in respect of all promotional competitions held during that calendar year in which that promoter was involved or is to be involved.

(4) The total amount of cash prizes offered or awarded in a promotional competition may not exceed R100 000.

(5) The value of the first prize offered or awarded in a promotional competition may not exceed R100 000.

Nature of prizes

4. (1) A promoter may not offer, award or deliver goods, services or benefits as prizes -

1. substantially similar to goods, services or benefits offered or awarded as prizes in -

1. a competition, game or sports pool conducted by or on behalf of the National Lottery; or
2. a competition or game conducted by or on behalf of a lottery incidental to an exempt entertainment or a society lottery conducted in the same geographical area during the period in which that promotional competition is being held;

2. in respect of which the sale, possession, use, distribution, rendering or delivery is unlawful;
3. in respect of which the possession, use, rendering, distribution, delivery or enjoyment of is dependent on the payment of a fee or any other consideration to any person in order to fully possess, use or enjoy the prize;
4. in respect of which any licence, approval, endorsement, sanction, consent, agreement or any form of authorization by -

1. any organ of state;
2. any other person; or
3. in the case of a person under the age of 18 years being the winner or beneficiary of a prize, that person's parents or legal guardian is required for the lawful possession, use or enjoyment of those goods, services or benefits, and the award of the prize is contingent upon the winner obtaining such licence, approval, endorsement, sanction, consent, agreement or any form of authorisation; or

5. subject to subregulation (2), if the winner of the prize is expected or obliged to endorse, promote or advertise the goods or services of the promoter, unless that winner after being publicly announced as a winner of the promotional competition is in writing informed of this regulation and in writing consents to endorse, promote or advertise the goods or services of the promoter.

(2) If the winner referred to in subregulation (1)(e) is a person under the age of 18 years, that person's parents or legal guardian shall for purposes of subregulation (1)(e), and in accordance with any other law, give such written consent.

(3) A promoter may not in respect of a promotional competition contemplated in regulation 3 (1)(a) or (2)(a) oWer or award more than one prize to any one person.

Frequency of promotional competitions

5. A promotional competition may only be held if, in the case of a promotional competition contemplated in -

1. regulation 3(1)(a) and (2)(a), 14 calendar days;
2. regulation 3(1 )(b), (1 )(c) or (2)(c), five calendar days; or
3. regulation 3(2)(b), 30 calendar days, have passed since the winners of a previous promotional competition held by the promoter have been announced in public in accordance with the rules of that competition.

Duration of promotional competition

6. Subject to regulations 3 and 5, the duration of a: promotional competition may not, in the case of a promotional competition contemplated in -

1. regulation 3(1), exceed three months; or
2. regulation 3(2), exceed six months.

Areas of holding promotional competitions

7. Subject to regulations 4(1)(a)(ii) and 11(3) and any other law to the contrary, a promotional competition may be held anywhere in the Republic.

Notification of promotional competition

8. (1) A promoter shall, subject to subregulation (2), notify the board of a promotional competition at least 21 calendar days before the launch of that competition in the public domain.

(2) If the promoter of a promotional competition is a juristic person, the notification contemplated in subregulation (1) is required only if the maximum value of all prizes in the promotional competition -

1. in the case of any of the prizes not consisting of goods or services which are ordinarily manufactured, sold, rendered, supplied, distributed or delivered by any of the promoters involved in that competition or which in any other way form a substantial part of the business of any of the promoters so involved during that calendar year, exceeds R100 000; or
2. in the case of the prizes consisting solely of goods or services which are ordinarily manufactured, sold, rendered, supplied, distributed or delivered by any of the promoters involved in that competition or which in any other way form a substantial part of the business of any of the promoters so involved during that calendar year, exceeds R500 000.

(3) A notification contemplated in subregulation (1) shall be made substantially in the form set out in the Annexure.

(4) Three paper copies completed and signed by all promoters involved in the promotional competition concerned and one electronic copy in a fommat acceptable to the board, of the notification contemplated in subregulation (1) shall be delivered to the board's head office on weekdays during the board's office hours.

(5) A non-refundable fee of R2 000 excluding Value Added Tax is payable to the board upon delivery of a notification contemplated in subregulation (1).

Inspection of promotional competition

9. (1) Any member of the board or any person designated by the chairperson or acting chairperson of the board in writing for this purpose may for purposes of monitoring compliance with the Act or these regulations enter into any premises, search any such premises, examine any object, make copies of or take extracts from any book or document or seize any object, if such member or person has obtained a warrant permitting any such action from a judge of the High Court or a magistrate who has jurisdiction in the area where the premises are situated.

(2) A warrant contemplated in subregulation (1) shall only be issued if it appears to the judge or magistrate from infommation on oath that there are reasonable grounds for believing that

1. an exercise of a power referred to in subregulations (1) or (4)(b) is necessary for the purpose of appropriate and applicable law enforcement in terms of the Act or these regulations; and
2. an object, book or document is likely to be upon or in such a premises.

(3) A warrant contemplated in subregulation (1) -

1. shall specify, whether in general or specific, which of the acts mentioned in subregulations (1) or (4)(b) may be performed thereunder by the person to whom it is issued;
2. shall be executed by day unless the person who issued it authorises the execution thereof by night at times which in the circumstances are reasonable;
3. may be issued on any day and shall be in force until

1. it has been executed;
2. it is cancelled by the person who issued it or, if such person is not available, by any person with similar authority; or
3. the expiry of one week from the date of its issue.

(4) Any person who acts on the authority of a warrant contemplated in subregulation (1) -

1. shall, subject to subregulation (5), immediately before commencing with the execution -

1. audibly demand admission to the premises from the person who seems to be in control of the premises;
2. identify himself or herself to the person who appears to be in control of the premises, if such person is present, and hand to such person a copy of the warrant or, if such person is not present, amx such copy in a prominent place on the premises; and
3. if such person is present, state the purpose for which he or she seeks entry.

2. may, subject to subregulation (3)(a), use such force as may be reasonably necessary, including the breaking of any door, window or other barrier

1. to overcome any resistance against the entry and search; or
2. if no person replies to the demand contemplated in paragraph (a)(i), in order to gain entry to the premises.

(5) Subregulation (4)(a) is not applicable if the person acting on the authority of that warrant is on reasonable grounds of the opinion that any object, book or document which is the subject of the search may be destroyed, tampered with or disposed of if subregulation (4)(a) is first complied with.

Advertising material

10. (1) The rules and manner and date of announcing the winners of a promotional competition shall be published in advertising material promoting that competition.

Prohibitions

11. (1) No promoter shall knowingly award a prize to a person in contravention of regulation 3(4) or (5) or regulation 12(1).

(2) No promotional competition shall promote goods or services in respect of which the sale or rendering to or the use, possession or enjoyment by the public at large is unlawful.

(3) A promotional competition shall not be substantially similar to a competition or game conducted by or on behalf of a lottery incidental to an exempt entertainment or a society lottery conducted in the same geographical area during the period in which the promotional competition is being held.

Prohibited participation in promotional competition

12. (1) No person who is -

1. a director, member, partner, employee or agent of or consultant to a promoter
2. a spouse, life partner, parent, child, brother, sister, business partner or associate of a person contemplated in paragraph (a); may participate in a promotional competition held by that promoter.

(2) Any advertising material in respect of a promotional competition shall in legible type alert prospective participants in that competition to the prohibition referred to in subregulation (1).

Exclusions

13. These regulations shall not apply in respect of operations authorised by a licence contemplated in section 13(1) of the Act or section 13(1)(j) of the National Gambling Act, 1996 (Act No. 33 of 1996).

Commencement

14. These regulations shall come into force on [day][month] 1999.

ANNEXURE

National Lotteries Board

NOTIFICATION IN TERMS OF REGULATION 8 OF THE REGULATIONS

REGARDING PROMOTIONAL COMPETITIONS

NOTE: No notification will be accepted unless accompanied by the fee prescribed by regulation 8(4). Three paper copies completed and signed by the promoters involved and one electronic copy of this notification shall be submitted to the National Lotteries Board. All copies of this notification shall be submitted together.