One of the most common mechanisms preferred in promotion
campaigns in Turkey is prize draws. The promotion campaigns
including prize draws aims to increase the sales by pushing the
consumer to purchase as more purchase gives more chance to win the
prize. Because of its nature of pushing the consumer more to
consume, under Turkish practice, the promotion campaigns with prize
draws are strictly governed and scrutinized by the National Lottery
Administration (NLA). NLA performs its control generally pursuing
the Regulation pertaining to National Lottery Administration,
Lotteries and Drawings without a Cash Prize and the Regulation on
the Principals of Commercial Advertisements.
Pursuant to the above mentioned regulations, NLA is the sole
authority to evaluate the permission requests for prize draws, to
accept the appropriate ones and to control whether the promotion
campaigns are in line with the given permission. NLA while doing
its examinations acts with the aim of protecting the consumers from
the deceptive acts of the promoters.
In this context, it is important to be aware that the
legislation giving the authority to NLA has a pretty vague wording.
Due to this fact, NLA benefits from a large discretion power while
examining the permission requests.
Some prize draws, however, may be organized without being
subject to the permission of NLA. In this respect if the value of
the prize to be distributed to the consumer is less than 49,62 TL
(approximately 23,07 Euro), such prize draws are not subject to the
permission of NLA. Again, if under the promotion campaign, the
prizes are distributed without the organization of a draw but for
instance through a contest, since there does not exist any factor
of chance, such promotion campaign shall not be subject to the
authority of NLA.
Despite some of the promotion mechanisms are determined as being
outside of the authority of NLA, under Regulation pertaining to
National Lottery Administration, Lotteries and Drawings Without a
Cash Prize, it is still NLA which would determine whether the
promotion including prize draw is subject to the permission of the
administration or not. Due to this provision, even if the value of
prize is less than 49,62 TL, promotion campaigns should be
submitted to NLA.
The Administration while examining the promotion campaigns pays
attention to some important points. However, it seems that the main
focus of the Administration is the prevention of the prize draws
with cash prize as NLA is the only entity under Turkish law which
is permitted to organize prize draws with cash prize. In this
respect, it is understandable that the prize draws with cash prize
which may be organized by third parties other than NLA is not
permissible. In this context the Administration considers that the
goods such as gold, platinum, precious stones, bonds or similar
things which can be converted into cash also are not permitted to
be distributed as a prize in a draw.
With the consideration of preventing cash prize, the
Administration also prevents the distribution of more than one
prizes of the same kind. The reason behind this prohibition is that
under such circumstances, the winner may use one of the prizes and
sell the other thus convert the prize into cash. Actually in one of
the cases, the promoter would like to launch a promotion campaign,
in which there would be three winners and all the winners would get
the same prize but the third winner would get only one prize, the
second one would get two prizes and the first one would get three
prizes of the same type. However, the Administration interpreted
the situation as that a standard person in Turkey would not need
three units of the same item, giving three prizes of the same type
would lead the winner to sell the other two thus convert the prize
In addition to the above stated provisions, different from some
of the countries, under Turkish law, it is prohibited for the ones
under the age of 18 to participate any game of chance including
prize draws even these may be organized for promotional purposes.
Therefore, NLA while evaluating the promotion campaign, requires
that the terms and conditions of the promotion should include the
prohibition that the ones under age of 18 are not permitted to
enter the drawing and even if they enter, they cannot win any
Above some important principles of the Turkish practice in
relation to promotion campaigns with prize draws are mentioned.
However, as mentioned previously, due to the vague wording of the
relevant legislation and the large scope of discretion of the
executives evaluating the promotion campaigns, before filing any
official application, it would be safer to get a preliminary
approval of the NLA.
The content of this article is intended to provide a general
guide to the subject matter. Specialist advice should be sought
about your specific circumstances.
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