Urgent need to submit comments on proposed promotions regulations

"We require these submissions by no later than Tuesday, 25 January 2011, in order for us to include them in our submission to the DTi before the 31 January deadline," says Chris de Villiers (FCIS), executive director of MA(South Africa).

Extract from Government Gazette

Promotional competitions

14.(1) For purposes of section 36(11) of the Act, a promoter of a promotional competition requiring a consumer to enter the competition by way of a short message service ("SMS") or multimedia messaging service ("MMS"), or any other application providing communication by way of a mobile telephone or similar device using full duplex two-way radio telecommunications over a cellular network of base stations, may not charge a fee for that service or application exceeding the minimum fee normally payable by the general public on the network or via the service provider chosen by the consumer in respect of an ordinary SMS or MMS,

(2) Any provision in the rules of a promotional competition requiring the prize winner to -
(a) permit the use of his or her image in marketing material; or
(b) participate in any marketing activity, without affording him or her the opportunity to decline an invitation to do so or informing him or her of the right to decline such an invitation, is null and void.

(3) The monetary threshold of prizes for the purpose of excluding competitions with low-value prizes from the definition of "promotional competition" for purposes of section 36(11)(a) is R 1.00 (One Rand).

(4) The promoter must ensure that a chartered accountant, registered auditor, admitted attorney or commissioner of oaths conducts the competition and must be reported on through the promoter's internal audit reporting procedures

(5) For purposes of section 36(1 t)(b) of the Act and subject to sub-regulation (3), a promoter must, for a period of at least five years, retain -
(a) full details of the promoter, including identity or registration numbers, as the case may be, addresses and contact numbers;
(b) the rules of the promotional competition;
(c) a copy of the offer to participate in a promotional competition contemplated in section 36(5);
(d) the names and identity numbers of the persons responsible for conducting the promotional competition;
(e) a full list of all the prizes offered in the promotional competition;
(f) a representative selection of materials marketing the promotional competition;
(g) a list of all instances when the promotional competition was marketed, including details on the dates, the medium used and places where the
marketing took place;
(h) the names and identity numbers of the persons responsible for conducting the selection of prize winners in the promotional competition;
(i) in the case of a prize exceeding R 1.00 (One Rand) in value, determined by reference to what a consumer would in the ordinary course of business pay to purchase the prize, an acknowledgment of receipt of the prize signed by the prize winner, and his or her identity number, and the date of receipt of the prize;
(j) declarations by the persons contemplated in paragraph (d) made under oath or affirmation that the prize winners were to their best knowledge not employees, agents or consultants of the promoter or marketing service providers in respect of the promotional competition, or the spouses, life partners, business partners or immediate family members;
(k) a copy of the report contemplated in sub-regulation

(6) For purposes of section 36(11}(b) of the Act, a promoter must compile a full report on the conduct and outcome of a promotional competition, detailing as a minimum -
(a) the basis on which the prize winners were determined;
(b) the summary describing the proceedings to determine the winners, including the names of the persons participating in determining the prize winners, the date and place where that determination took place and whether those proceedings were open to the general public;
(c) whether an independent person oversaw the determination of the prize winners, and his or her name and identity number;
(d) the means by which the prize winners were announced and the frequency thereof;
(e) a list of the names and identity numbers of the prize winners;
(f) a list of the dates when the prizes were handed over or paid to the prize winners;
(g) in the event that a prize winner could not be contacted, the steps taken by the promoter to contact the winner or otherwise inform the winner of his or her winning a prize; and
(h) in the event that a prize winner did not receive or accept his or her prize, the reason for his or her not so receiving or accepting the prizes and the steps taken by the promoter to hand over or pay the prize to that prize winner, and must record the name, identity number and contact details of the person compiling the report and the date thereof.

(7) A promoter must upon request in writing by the Commission forthwith at his, her or its own expense submit any of the documents or materials contemplated in sub-regulations (5) and (6) so requested to the Commission.