Running a prize draw sounds simple enough, right? Pick a prize, collect some names, and choose a winner. But as anyone who’s ever tried to run one will tell you, the legal landscape is far more tangled than it first appears. That’s why many brands rely on expert support, such as the prize fulfilment services offered by Active Consultancy, to keep things running smoothly. A well-planned promotion can build excitement, drive engagement and deliver real value, but only if it stays on the right side of the rules. Here’s how to do that without slowing down the momentum of your campaign.
Understanding the rules: what you can (and can’t) do
Before launching anything flashy, it’s worth nailing down a crucial distinction: the difference between a prize draw and a prize competition. A prize draw is, at heart, a game of chance. The winner is chosen randomly. A prize competition, on the other hand, involves an element of skill, judgment or knowledge. Why does this matter? Because each sits under different regulatory expectations, and mixing them up can cause unintended legal headaches.
In the UK, the regulatory framework is shaped by the Gambling Act, the Advertising Standards Authority (ASA), and good-old-fashioned data protection laws. Free draws, in particular, must genuinely be free. The Gambling Commission provides clear guidance on this, especially the requirement that any free entry route must be just as prominent, accessible and straightforward as any paid route.
Building a compliant promotion: the basics done properly
The backbone of a fair promotion is transparent, well-written terms and conditions. Clear T&Cs are your best defence against complaints. They should spell out who can enter, how to enter, when the draw closes, how the winner will be chosen, and what exactly the prize includes.
Next comes the draw itself. Whether you’re randomising digitally or using an independent adjudicator, your method should be transparent, auditable and unbiased. If you document the process, it’s far easier to show you’ve done things fairly if you’ve kept a record of how the winner was picked.
And then there’s data. Prize draws usually generate a flood of personal information, but brands must remember that data protection rules still apply. Store entrant details securely, use them only for stated purposes, and be upfront about how long you’ll keep them. Nobody wants to win a prize only to wonder how many marketing systems their details have been fed into.
Common pitfalls: what trips brands up most often
Many problems arise from unclear entry requirements. If customers need to make a purchase, complete a task, or navigate multiple steps, it can accidentally turn a “free” draw into something that isn’t free at all, legally speaking. Hidden hoops make regulators twitchy!
Over-promising is another common stumble. The ASA regularly deals with promotions that fail to deliver prizes as advertised. If you’re giving away a “luxury weekend break”, that weekend needs to be genuinely luxurious. If availability changes, you must update your promotion and notify your entrants.
Finally, there’s the human side: communicating with winners. Delays in contacting winners, unclear timelines or vague messaging can quickly lead to mistrust.
Why expert support can save you time, effort and stress
For many brands, the easiest way to avoid missteps is to work with specialists who understand the whole puzzle, from logistics to legislation. That’s where experts like Active Consultancy come in. Professional prize fulfilment ensures the selection process is fair, the paperwork is watertight, and the delivery is seamless. When the stakes are high and the timelines tight, having a partner who lives and breathes compliance can be the difference between a campaign that dazzles and one that derails.
Fast, fair and drama-free
A prize draw should be exciting, not anxiety-inducing. With the right preparation, a clear understanding of the rules and a little expert support, your promotion can run quickly and cleanly. If you’re planning a prize draw and want total confidence from start to finish, explore how our prize fulfilment services can take the pressure off
