Running a promotional competition or prize draw in South Africa means navigating the Consumer Protection Act (CPA) Section 36. Getting this right protects your business and builds trust with participants. This guide breaks down exactly what you need to know.
What is CPA Section 36?
The Consumer Protection Act 68 of 2008, Section 36, governs promotional competitions in South Africa. Any business that runs a competition where participants can win prizes must comply with these regulations.
A "promotional competition" under the CPA includes:
- Prize draws (random selection from entries)
- Competitions requiring skill or judgment
- Lotteries tied to product purchases
- Sweepstakes and lucky draws
Key Requirements
1. No Purchase Necessary
Participants must be able to enter without making a purchase. You must offer a free alternative entry method — typically by mail, SMS, or online form. This is one of the most commonly overlooked requirements.
2. Clear Terms and Conditions
Your competition T&Cs must be clearly displayed and include:
- Eligibility criteria (age, residency)
- Entry method(s) including the free entry option
- Competition period (start and end dates)
- Prize description and value
- How and when the winner will be selected
- How and when prizes will be awarded
- Any skill-testing question (for skill-based competitions)
3. Transparent Winner Selection
The draw must be conducted transparently. Using a platform like Spinly gives you cryptographic proof of fairness — every draw is recorded with an auditable random seed that proves the result wasn't manipulated.
4. Publication of Winners
You are required to publish the winners' names within a reasonable time after the competition closes. Winners must also be notified directly.
5. Prize Delivery
Prizes must be delivered within the timeframe stated in your T&Cs. If no timeframe is stated, you must deliver within a reasonable period (typically 30 days).
Common Mistakes to Avoid
Forgetting the free entry option. Even if your competition is tied to a purchase, you must offer a free entry route. This is non-negotiable under CPA Section 36.
Vague prize descriptions. "Win a holiday" isn't sufficient. You must specify the prize value, what's included, what's excluded, and any conditions (like travel blackout dates).
Not publishing winner details. Failing to announce winners — even on your own social media — is a breach. Spinly automates winner announcement emails and gives you shareable results pages.
Changing the rules mid-competition. Once T&Cs are published and entries are being accepted, you cannot materially change the rules without notifying participants.
How Spinly Helps You Stay Compliant
Spinly was built with South African regulations in mind:
- Auditable random draws — every draw produces a cryptographic proof that the result is fair and unmanipulated
- T&Cs template — our guided setup prompts you for all required information
- Free entry option — we make it easy to offer an online free entry route alongside any paid mechanic
- Automated winner notification — branded emails notify winners automatically, creating a paper trail
- Results page — share a permanent link showing who won, when, and how
When Do You Need a Professional Lawyer?
For most standard competitions, a well-structured T&Cs document and a fair draw platform are sufficient. Consider legal review if:
- Your prize value exceeds R1 million
- You're running a campaign across multiple Southern African countries
- Your competition mechanic is unusually complex
- You're in a regulated industry (financial services, alcohol, tobacco)
Summary Checklist
Before launching your competition, confirm:
- [ ] Free entry method is available and prominently disclosed
- [ ] T&Cs are published and accessible before entries open
- [ ] Competition period, prize description, and value are clearly stated
- [ ] Draw method is documented (random selection, skill criteria, etc.)
- [ ] Winner publication plan is in place
- [ ] Prize delivery timeline is committed to in T&Cs
Running compliant competitions protects your brand and ensures participants trust your process. With the right platform and preparation, CPA Section 36 compliance is straightforward.
Ready to run your next competition? Start free on Spinly — no credit card required.