February 18, 2026
On February 17, 2026, Canada’s federal Competition Bureau (Bureau) issued a News Release warning consumers to be careful when entering promotional contests (and by implication for contest sponsors to ensure that they comply with the Competition Act) (see: Promotional Contests: Businesses Owe Consumers Honest Information).
In general, the Bureau warned consumers to be cautious of contests that lack transparency or require unnecessary steps to access the details of a contest. The Bureau also cautioned contest sponsors not to make any false or misleading claims about their contests.
More specifically, the Bureau confirmed its position on the mandatory information that must be made easily available to consumers in a promotional contest:
Number and Value of Prizes. The Bureau states that businesses should clearly state how many prizes are available in a contest and their approximate market value. This requirement is expressly set out in section 74.06(a) of the Competition Act, which requires contest sponsors to make “adequate and fair disclosure” of the number and approximate value of prizes, the area (or areas) to which they relate and the odds of winning.
Regional Prize Allocation. If a contest will have a regional allocation of prizes (e.g., certain prizes allocated by provinces/territories, regions, etc.), then that allocation should be clearly disclosed. This requirement is set out in section 74.06(a) of the Competition Act. in practice contest sponsors typically include language in the prize description sections of the short and long contest rules as to which prizes will be allocated in which provinces/territories or other regions.
Any Purchase Requirement. The Bureau states that if a purchase of a product or service is required to enter a contest then this requirement should be prominently disclosed. This recommendation from the Bureau is from the perspective of ensuring that the terms and conditions of a contest are not false or misleading under the Competition Act. Contest sponsors should, however, be aware that the Bureau is not responsible for administering Canada’s federal Criminal Code, which contains a number of illegal lottery offences under section 206(1) that must also be avoided by sponsors. In this regard, to avoid (i.e., not violate) these illegal lottery offences, contest sponsors typically include a bona fide no purchase entry option in their contests and a mathematical skill-testing question. If a purchase or other significant consideration (i.e., something of value) must be provided to a sponsor as the only way to enter a contest, sponsors are well advised to obtain competent legal advice as to the potential Criminal Code risks.
How Winners are Selected. The Bureau states that contest rules should explain whether winners are chosen randomly or through some legitimate skill-based method. In this regard, section 74.06(c) of the Competition Act makes it a reviewable practice where in a contest “selection of participants or distribution of prizes is not made on the basis of skill or on a random basis in any area to which prizes have been allocated.”
Easy Access to Contest Rules. The Bureau states that all essential contest information should be made easily available to potential entrants. In this regard, the Bureau’s position is that consumers “shouldn’t have to visit a store, make a purchase, modify a product or hand over personal information just to find out how the contest works.” This guidance reflects both the general false or misleading advertising provisions of the Competition Act, which apply to all marketing in Canada including contests, as well as section 74.06(a) of the Competition Act, which requires contest sponsors to provide “adequate and fair” disclosure of certain material contest terms. In practice, most contest sponsors include a short (typically one long paragraph) description of the material contest rules on the bottom of their online contest landing pages, in the footers of marketing materials and social media and on-pack for in-store promotions with a link to the full contest rules (commonly called “short rules” or “mini rules”) and, if space does not permit, “mini mini” rules that include a link to the full contest rules.
In addition to the above guidance, the Bureau included in its News Release links to its other related relevant contest-related guidance, including its overview pages on promotional contests generally, deceptive prize notices, false or misleading representations and influencer marketing (see: here, here, here, here and here).
It is worth noting that the Bureau has also launched a new Promotional Contests overview page as part of its new contest guidance announced on February 17, 2026 (see: Promotional Contests).
IMPLICATIONS
While the Bureau’s new promotional contest announcement largely reflects its past guidance, the fact that it encourages consumers to report potentially deceptive contests, as well as its related updated online guidance, suggests that it may have been receiving an increased number of promotional contest related complaints or a heightened enforcement interest in deceptive promotional contests.
As such, contest sponsors running promotional contests in Canada are well advised to ensure that their contests comply with Canada’s Competition Act and other relevant laws (e.g., Canada’s federal Criminal Code, privacy law and if electronic marketing will be involved, federal anti-spam legislation (CASL)).
For more information from our blogs about the legal requirements to run a compliant promotional contest in Canada, see: Contests, Contests and CASL, Contest Law Tips and Contests and Social Media. Also, visit our Canadian contest law blog: Canadian Contest & Promotions Law.
CANADIAN CONTEST RULES/PRECEDENTS
In addition to legal advice, we offer many types of Canadian contest/sweepstakes law precedents and forms (i.e., Canadian contest/sweepstakes law precedents to run common types of contests in Canada). These include legal precedents for random draw contests (i.e., where winners are chosen by random draw), skill contests (e.g., essay, photo or other types of contests where entrants submit content that is judged to enter the contest or for additional entries), trip contests and more.
Also available are individual Canadian contest/sweepstakes precedents, including short rules (“mini-rules”), long rules, winner releases and a Canadian contest law checklist.
For more information and to order see: Canadian Contest Law Forms/Precedents.
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SERVICES AND CONTACT
We are a Toronto based competition and advertising law firm offering business and individual clients efficient and strategic advice in relation to competition/antitrust, advertising, Internet and new media law and contest law. We also offer competition and regulatory law compliance, education and policy services to companies, trade and professional associations and government agencies.
Our experience includes advising clients in Toronto, across Canada and the United States on the application of Canadian competition and regulatory laws and we have worked on hundreds of domestic and cross-border competition, advertising and marketing, promotional contest (sweepstakes), conspiracy (cartel), abuse of dominance, compliance, refusal to deal and pricing and distribution matters. For more information about our competition and advertising law services see: competition law services.
To contact us about a potential legal matter, see: contact
For more information about our firm, visit our website: Competitionlawyer.ca
Templates/precedents and checklists to run promotional contests in Canada
Templates/precedents and checklists to comply with Canadian anti-spam law (CASL)
