Canada: Quebec Is Ready To Play: Quebec Puts An End To Contest Laws

It is not uncommon to see a contest or sweepstakes open to Canadian residents that excludes Quebec residents from participating. However, this may start changing. On October 27, 2023, Quebec repealed their rules regarding contests and sweepstakes that are open to residents of Quebec (referred to in the province as "publicity contests"). In accordance with these changes, the Régie des alcools, des courses et des jeux (the "Régie") will no longer supervise publicity contests.¹

Quebec's Bill 17 revised the Act respecting lotteries, publicity contests and amusement machines (the "Act") to reduce the regulatory and administrative burden on enterprises, including by removing references to publicity contests throughout the Act and repealing the Rules respecting publicity contests.

Prior to this enactment, the Régie had stringent rules regarding publicity contests. The Régie required that organizers of publicity contests open to Quebec residents that met certain monetary thresholds:

• file an application to register the contest with the Régie, including copies of the rules and marketing materials, and pay associated fees;
• include certain prescribed information in the contest rules;
• send a report to the Régie concerning the publicity contest within 60 days following the winners being chosen;
• post a bond, in certain situations; and
• seek permission from the Régie for any modifications to a contest once it had been launched.

Bill 17 has removed all of the above requirements as of October 27, 2023. It is important to note that any contests filed with the Régie prior to October 27, 2023 are still subject to the old rules, regardless of when the contest starts. However, contest sponsors must still ensure that if the contest is open to Quebec residents, all contest rules, entry methods and advertising must be in French in order to comply with the Province's French language laws.

These changes are just another step towards loosening the Régie's control on publicity contests. Previously in 2021, the Act was amended to remove international contests from the scope of the Régie's administration and enforcement.

While Quebec may have lifted their province-specific requirements, contest organizers still need to consider federal laws applicable to contests as they would for any other province, including the Criminal Code and the Competition Act. Under the Competition Act, all contest advertising must disclose key information about the contest, including the number and approximate value of available prizes, any regional allocation of the prizes and of any other fact that materially affects the chances of winning. Typically these disclosure requirements are met by including contest "mini rules" within contest-related promotional material setting out the number and value of prizes, any regional allocation of prizes, the requirement and nature of the skill-testing question, the odds of winning, the contest opening and closing dates, a "no purchase necessary" statement and a link to the full rules.

Additionally, the Criminal Code does not allow prizes to be awarded solely based on chance; therefore, contests generally require the selected entrants to answer a skill-testing question in order to be declared a winner. Entry must be possible without making a purchase. Contest sponsors should also keep in mind that federal and provincial privacy laws require informed consent from entrants in order to collect and use their personal information to administer the contest. Depending on the manner of advertising the contest, Canada's anti-spam legislation may also apply. Finally, Quebec's Consumer Protection Act still provides that no one may offer a gift, a prize or a rebate on any goods in connection with a contest or a drawing without clearly disclosing all the terms and conditions for obtaining it.

Footnote

1. See the communication released by Régie (in French only).