The CAP Code is a set of rules that governs all non-broadcast advertising in the UK. It covers print ads, online ads and all forms of direct marketing, including prize promotions.
The ‘CAP’ in CAP Code stands for the ‘Committee of Advertising Practice’. This body is made up of advertising industry representatives, and is responsible for writing and updating the CAP Code. However, the Advertising Standards Authority (ASA) is responsible for administering and enforcing it.
The CAP Code does not cover TV advertising, which is governed by the BCAP Code for broadcast advertising.
What is the purpose of the CAP Code?
It exists to protect consumers. It sets standards for promotions and ensures that all non-broadcast advertising is legal, honest, decent and truthful.
The code lays out the rules for marketing different types of goods, such as alcohol, slimming and beauty products. It also describes how certain audiences, for example children, should be addressed. It covers gambling and lotteries, too.
How does the CAP Code apply to prize promotions?
If you are a promoter, to produce legally compliant terms and conditions, and run legal prize draws and competitions, you must follow all applicable CAP Code rules.
Section 8 – promotional marketing – is the most relevant for prize promotions. It has over 30 rules, many with several sub-sections, but numbers 8.19 to 8.29 focus exclusively on prize promotions.
For instance, some of the main requirements for running prize promotions that comply with the code are:
- You must communicate key information, such as how to enter and the closing date, clearly and in full
- You must not exaggerate entrants’ chances of winning
- You must choose prize draw winners at random and be able to prove you have done so
- You must use an independent judge if the choice of winner is subjective
- You must award the prizes as described
- You must make a list of the name and county of winners available
What happens if you break the CAP Code?
If your prize promotion does not abide by the Code, a consumer may complain about it to the ASA. The ASA also uses AI to proactively identify promotions that do not comply with the code.
For example, the ASA received a complaint that the closing date for a Virgin Radio prize draw was extended several times. This was due to a technical issue with the entry mechanism. However, the ASA decided that it was unfair to the original entrants and contravened the CAP Code, so it upheld the complaint.
If the ASA upholds a complaint, it can demand that the offending promotion is removed, amended or not run again and, if you do not comply, the ASA can impose sanctions.
What are the key points about the CAP Code and prize promotions?
- The CAP Code, administered by the Advertising Standards Authority (ASA) is a set of rules that governs all non-broadcast advertising in the UK, including prize promotions.
- All UK prize promotions must comply with the CAP Code and it is your responsibility as the promoter to ensure your promotion does this.
- If your promotion is found to have contravened the CAP Code, the ASA can demand it is taken down or it can impose a range of sanctions on your company.
