Lotteries Act, 1997 (Act No. 57 of 1997)Part II : Other LotteriesChapter 3 : Functions of board in respect of society lotteries54. Promotional competitions |
| (1) | A promotional competition shall not be unlawful if— |
| (a) | it is conducted in the Republic; |
| (b) | the consideration payable in respect of the purchase of goods or the use of services in respect of which that promotional competition is conducted— |
| (i) | is the price usually or ordinarily paid, excluding discounts, for such or similar goods or services without the opportunity of taking part in a promotional competition; |
| (ii) | is not increased by the opportunity to participate in that promotional competition; |
| (iii) | is the only consideration payable for those goods or services and includes consideration for the right to compete; |
| (c) | the opportunity of participating in the promotional competition is not the only or the only substantial inducement to a person to purchase or use the goods or services to which the promotional competition relates; |
| (d) | the promotional competition is conducted in accordance with the regulations prescribed by the Minister in terms of subsection (2) or (3); |
| (e) | the promotional competition or any conduct under it is not substantially comparable to— |
| (i) | a business practice which has been declared unlawful in terms of the Consumer Affairs (Unfair Business Practices) Act, 1988 (Act No. 71 of 1988); or |
| (ii) | a restrictive practice which has been declared unlawful in terms of the Competition Act, 1998 (Act No. 89 of 1998); |
| (f) | the Minister has not in terms of subsection (4) declared the promotional competition unlawful; |
| (g) | the goods or services manufactured, sold, supplied, distributed or delivered in connection with the right to participate in a promotional competition are usually or ordinarily manufactured, sold, supplied, distributed or delivered by the person for whose benefit the promotional competition is held; |
| (h) | [Section 54(1)(h) deleted by the Lotteries Amendment Act, (Act No. 46 of 2001)] |
| (i) | the promotional competition is riot substantially similar to any competition, game or sports pool conducted by or on behalf of the National Lottery; and |
| (j) | the consideration paid for the purchase of the goods or the use of the services promoted by a promotional competition is not increased by the opportunity to take part in that promotional competition to such an extent that that promotional competition does not mainly serve as a means, method or mechanism of promoting the relevant goods or services, but substantially as consideration for the opportunity to take part in that promotional competition. |
| (2) | The Minister may, after 'consultation with the board, with due regard to the effect of promotional competitions on the National Lottery, lotteries incidental to an exempt entertainment and society lotteries, make regulations which are necessary for the proper conduct and regulation of promotional competitions in general. |
| (a) | [Section 54(2)(a) deleted by the Lotteries Amendment Act, 46 of 2001] |
| (b) | [Section 54(2)(b) deleted by the Lotteries Amendment Act, 46 of 2001] |
| (c) | [Section 54(2)(c) deleted by the Lotteries Amendment Act, 46 of 2001] |
| (d) | [Section 54(2)(d) deleted by the Lotteries Amendment Act, 46 of 2001] |
| (3) | Without derogating from the generality of subsection (2), the Minister may make regulations in respect of— |
| (a) | the minimum age of a person who may participate in any particular competition or category of competitions; |
| (b) |
| (i) | [Section 54(3)(b)(i) deleted by the Lotteries Amendment Act, 46 of 2001] |
| (ii) | [Section 54(3)(b)(ii) deleted by the Lotteries Amendment Act, 46 of 2001] |
| (iii) | [Section 54(3)(b)(iii) deleted by the Lotteries Amendment Act, 46 of 2001] |
| (c) | [Section 54(3)(c) deleted by the Lotteries Amendment Act, 46 of 2001] |
| (d) | [Section 54(3)(d) deleted by the Lotteries Amendment Act, 46 of 2001] |
| (e) | [Section 54(3)(e) deleted by the Lotteries Amendment Act, 46 of 2001] |
| (f) | [Section 54(3)(f) deleted by the Lotteries Amendment Act, 46 of 2001] |
| (g) | the conditions or circumstances under which the board or any person designated by it may without the consent of the person who conducts the promotional competition inspect any aspect, including any process or procedure, relating to a promotional competition, including the accounting procedures and the process of identifying the winner or winners of that promotional competition; |
| (h) | any matter relating to the conduct of a promotional competition which may reasonably have a negative influence on or consequence for the public or a part or group thereof; |
| (i) | offences and penalties for the contravention of the regulations. |
| (4) | The Minister may on the recommendation of the board by notice in the Gazette declare a promotional competition to be unlawful. |
| (5) | Any person conducting a promotional competition which in terms of subsection (4) has been declared unlawful, shall immediately cease to conduct such competition and shall immediately instruct all his or her or its agents and any other person connected with that competition to immediately terminate any action connected with the conduct of that competition, and any person who fails to comply with this subsection or an instruction thereunder is guilty of an offence. |