October 8, 2018

Using algorithms to select winners for prize promotions is becoming increasingly popular.

CAP recognises that using algorithms has its benefits; for example, it enables advertisers to demonstrate that winners in an instant win promotion were selected fairly and randomly (in line with rule 8.25).

However, CAP says, the number of prizes actually awarded can sometimes be significantly lower than those advertised as available. Whilst this in itself may not break the rules, ads must include enough information about the selection process to enable consumers to understand what their chances of winning actually are before they decide whether or not to participate.

CAP says there are three key points promoters should consider to ensure that ads make this clear:

8. i) Do not exaggerate: ads for prize promotions must not mislead by exaggerating consumers chances of winning prizes (rule 8.20). If an ad states that thousands of prizes are available to be won, but only a small amount will actually get awarded, this is likely to mislead consumers who could reasonably think that the large number of prizes increases their chances of winning. Promoters should ensure that the ad includes enough information to make it clear to the consumer how likely they are to win, for example, by giving an explanation of the winner selection mechanism and an indication of the number of prizes likely to be awarded;
9. ii) Include enough information: algorithms are often complicated and ads do not need to include an overly detailed description of how they work. However, all ads should include enough information so that consumers can easily understand how prizes are allocated, and have a reasonable understanding of their chances of winning (rule 8.17); and

• iii) State all relevant information on the ad itself: the ASA has ruled that the terms that relate to the awarding of prizes are likely to significantly influence a consumer’s understanding and decision to participate in a promotion. As such, this information should be included on the promotional pack and any initial marketing communications. Including this information only in the full terms and conditions, is not sufficient.

To read CAP’s online guidance in full, click here.