Eversheds comment: ASA’s Pepsi decision shines the light on prize draws

• United Kingdom

22-11-2012

A recent prize promotion on Pepsi packaging offered the chance to win £500 every hour by texting in the last 4 digits of a barcode. However, after a complaint from a family, that was told that although they had won many times only one win would be honored, was upheld by the ASA (the Advertising Standards Authority), Andrew Terry, media law expert at global law firm Eversheds, comments on the implications for businesses wishing to carry out similar prize draws: 

"This decision by the ASA illustrates three important points when managing promotions. First, that promotions and prize draws which make use of social media or technology are becoming increasingly complex to administer. The days of simply needing to check that entrants have not photocopied a “money off” coupon and passed it off as an original, are long gone. Pepsi clearly had a sophisticated arrangement in place to manage the promotion, but still got into difficulty.

"Secondly, despite the complexity of promotional structures, the onus remains on promoters to make the mechanism for entry and winning absolutely clear, and to think ahead to possible pitfalls. Particular care should be taken where cash prizes are being awarded as they can act as an added incentive for entrants to find loopholes in promotion rules.

"Finally, although terms and conditions must be thorough (as this decision clearly illustrates) they must be easily understood by consumers – drowning them in legalese will just not do."

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• Andrew Terry
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