What Marketers Should Know About International Promotions

Posted on by Ira Schlussel

While there are basic marketing rules that span across continents, expanding brands’ sweepstakes or contest programs to an international scale means having to consider the differing rules and regulations across the map.

International PromotionsMoreover, with the now ubiquitous use of mobile and digital campaigns making for a more connected world, it’s understandable why brands might not think twice about what’s legally sound at home versus abroad.

Costly and time-consuming, running an international promotions program can be chaotic under normal circumstances, but underestimating the importance of research and constant communication with legal counsel could mean even bigger losses than time and money. Overall brand image and consumer following are at risk should any element of the promotion fall victim to negligence.

In order to live up to the expectations of eager consumers looking to enter contests and sweepstakes, not to mention save valuable time and money down the line, it’s necessary to be aware and compliant with both the existing and evolving laws unique to each country.

From deciding on a prize, to considering eligibility, to announcing the winner, these five pivotal steps in a sweepstakes or contest are universal, but here are a few examples of how starkly different and minutely detailed marketing around the world can be, and what brands should know when navigating potentially uncharted territory.

1. Game plan

In planning an international promotion, consider where your local brand establishment is based and how best to reach those consumers, and vet your program locally for legal compliance, since laws can vary dramatically from one jurisdiction to another. You might be surprised to find out the design of your program won’t work in some countries. In Sweden, for example, chance-based games (sweepstakes and instant wins) are banned in most instances. In a similar vein, pure chance promotions are very difficult to run in Brazil.

2. Entry level

With so many choices in social platforms and devices, it’s easy to get caught up in all the ways consumers can enter or register for a promotions program. For example, to “refer-a-friend” can mean a multitude of things in this day and age, whether it’s inviting a friend on Facebook or putting out a referral code through SMS. But in Germany, there are numerous hurdles you have to jump before you can refer a friend at all.

3. What about cost?

While there are many countries that don’t permit entry into a sweepstakes to be conditioned upon a purchase, in Luxembourg, “free” really means “free.” The requirement that sweepstakes entries be free of charge means that participants must be entitled to a reimbursement of the Internet connection used to enter the program or a reimbursement of the postage, if they request it in writing.

4. Eyes on the prize

Between skill-based tests, threshold prizing, and complex formulas for aggregating prize value, brands also need to adhere to several varied prizing rules. For instance, in Japan, the total value of prizes cannot exceed JPY 100,000 (or roughly $1,000 USD) when specifically dealing with a purchase method of entry. Reinforcing transparency of the prize-claiming process is also essential in maintaining a positive image, as the only surprise your participants want is the news that they’ve won. In Canada, every chance-based program must include a skill-based testing question, so if you want to claim your prize, you will be required to pass the math test given to you.

5. And the winner is…

Announcing the winner is always the most exciting part for both the brand and consumer. In Mexico, winning gets even more exciting, as promoters are required to publish the list of winners in the press. Meanwhile, in Italy, the drawing process must involve a public official. However, things can go amok if, say, you didn’t know for sweepstakes in Australia, all winners must be drawn on Australian soil, or in Portugal, a local government authority must observe the drawing of a winner. Brands need to be conscientious of the laws right up until the end, or risk backlash when they can’t follow through on giving the consumer what they’ve been waiting for since they entered.

Of course, no brand is expected to know the marketing laws of all 196 countries. Moreover, some of these rules don’t necessarily make sense in this digital day and age anymore. Because of today’s greater technological capabilities and more connected world, over time, brands perhaps will see laws better-suited for widespread international reach. Nevertheless, it’s best to over-communicate with your local experts in the meantime, and to remain worldly in the realm of marketing by monitoring the constant legal updates in the international promotions landscape.

Ira Schlussel is senior vice president, general counsel, HelloWorld. He can be reached at [email protected]‪. 

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