Disclaimer: This article is for informational purposes only and does not constitute legal advice. Competition law is complex and fact-specific. Always consult a qualified competition or consumer law attorney before running a promotional competition in South Africa.
Running a competition in South Africa sounds simple: pick a prize, ask people to enter, draw a winner. But if you are a brand, agency, or event organiser, the law has a few things to say about how that draw happens.
Section 36 of the Consumer Protection Act (CPA) is the piece of legislation that governs promotional competitions in South Africa. Get it right and you build brand trust, run a clean event, and protect yourself legally. Get it wrong and you risk regulatory scrutiny, consumer complaints, and reputational damage.
This guide breaks down what Section 36 requires, who needs to comply, the most common mistakes brands make, and how modern competition platforms like Spinly make compliance easier.
What Is CPA Section 36?
The Consumer Protection Act 68 of 2008 introduced Section 36 specifically to regulate promotional competitions — any scheme in which prizes are offered, allocated, or distributed to participants.
The regulation applies to competitions that involve:
- A prize or benefit of any kind
- An element of chance in the selection of winners
- Consumer participation (entering, voting, answering a question, etc.)
Section 36 sets out the rules for how these competitions must be conducted to protect consumers and ensure fair dealing.
Key requirements under Section 36 include:
- The competition must not require participants to purchase anything as a condition of entry (a "no purchase necessary" alternative must exist)
- Prize descriptions must be accurate and not misleading
- Winners must be selected through a verifiably random process
- Competition rules must be accessible to participants
- Records must be kept for a reasonable period after the competition ends
Who Needs to Comply?
If you are running a promotional competition in South Africa targeting South African consumers, Section 36 applies to you — regardless of whether you are:
- A large FMCG brand running a national on-pack promotion
- A small business offering a prize draw on Instagram
- An event organiser running a live lucky-draw at an activation
- A marketing agency executing a campaign on behalf of a client
The CPA applies broadly. The size of your business or the value of the prize does not exempt you.
Common Mistakes South African Brands Make
1. No audit trail for the draw
One of the most overlooked requirements is demonstrability. If a consumer or regulator asks how your winner was selected, you need to be able to show it was genuinely random and not manipulated.
Picking a name from a hat or using a basic spreadsheet formula does not produce a verifiable audit trail. If you cannot prove your draw was fair, you are exposed.
2. Vague or missing competition rules
Many campaigns launch with terms and conditions that are either non-existent, buried in fine print, or so vague they are unenforceable. Your rules should clearly state:
- The competition period (start and end dates)
- How to enter and any eligibility restrictions
- How the winner will be selected
- Prize description and value
- How and when the winner will be notified
- Whether the winner's details may be published
3. Purchase as sole entry mechanism
If the only way to enter is to buy a product or ticket, the competition may fall foul of Section 36's requirements. A free or alternative entry route is typically expected.
4. No documentation of disqualified entries
If you disqualify any entries (for example, duplicate accounts or entries from outside the eligible region), you need a defensible process for doing so — not just a gut feel or a manual delete.
5. Live draw with no verification
Live draws at events — whether for hospitality, activations, or product launches — are particularly prone to disputes. Without a proper system, it is one person's word against another.
What "Verifiably Random" Actually Means
The phrase "verifiably random" is where many competitions fall short in practice.
A truly verifiable draw means:
- The selection process uses a documented, reproducible method
- The result can be independently confirmed after the fact
- No one running the competition could have influenced the outcome
Cryptographically fair draws — where a seed and algorithm are recorded before the draw so the result can be re-run and verified — are the gold standard. This level of transparency is increasingly expected by sophisticated clients and, in high-stakes situations, may be required by legal counsel.
How Spinly Helps With Compliance
Spinly was built specifically for the South African market with competition compliance front of mind.
Cryptographically fair winner selection
Every draw on Spinly uses a verifiable random algorithm. The draw seed, timestamp, and result are recorded in an audit trail that you can share with participants, clients, or regulators if needed. You can prove your winner was selected fairly — not just claim it.
Complete audit trail for every competition
Spinly automatically logs every competition action: entries received, any disqualifications, the draw parameters, and the winner result. This gives you a defensible record if a question ever arises.
Accessible competition rules
Spinly's branded entry pages surface your competition terms directly to participants at the point of entry — not hidden on a third-party legal site. Every entrant sees the rules before they submit.
Live event mode with projector display
Running an on-site activation or event draw? Spinly's live event mode displays the draw in real time on a projector screen — visible to all attendees. The spin wheel, Q&A qualification round, and live draw create a transparent, crowd-facing experience that leaves no room for dispute.
One-time pricing, no monthly lock-in
Spinly charges per competition, not per month. You pay for what you run — Free (100 entries), Standard (R299, 1,000 entries), Premium (R699, 10,000 entries), or Enterprise for large-scale campaigns.
A Simple Compliance Checklist
Before launching your next competition, work through this list:
- [ ] Does the competition have clear written rules accessible to all participants?
- [ ] Is there a free or alternative entry method?
- [ ] Is the prize accurately described (value, conditions, expiry)?
- [ ] Will the winner selection process be verifiably random?
- [ ] Will an audit trail of the draw be retained?
- [ ] Are there eligibility restrictions (age, region) — and are they documented?
- [ ] Is there a process for handling disputes or queries?
- [ ] Have you consulted a competition law attorney for high-value or complex promotions?
The Bottom Line
Running a promotional competition in South Africa is not complicated — but it does require attention to process. The brands that get into trouble are rarely trying to be dishonest; they simply launch without thinking through the legal requirements or the paper trail.
A platform that handles the randomness, audit trail, and participant-facing documentation removes the biggest points of failure. The rest is up to you and your legal advisors.
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This article is for informational purposes only and does not constitute legal advice. For specific legal guidance on running a promotional competition under South African law, please consult a qualified attorney.