How to organise a prize-draw or prize-competition in China 21 December 2023 Be wary of contests with purchases and limits on the prize pool Organising a prize-draw or prize-competition in China is allowed whether it is decided by chance or by skill.Draws or competitions on social media are also allowed, but of course only on legal platforms in this country, so not Facebook and Twitter, for example. When organising a promotion of any kind, it is essential to take great care to avoid these being considered unfair activities, regulated by competition law. Be wary of draws and competitions with purchases Draws or competitions with purchases are also allowed as long as they do not encourage excessive purchasing. An example to understand the attitude towards this type of draw or competition is that of one of the most famous online talent shows in China, which was associated with a promotion in which viewers could obtain unlimited additional votes by buying a specific product. This campaign led to huge sales of the product, however there were widespread reports of viewers simply buying it to participate and then throwing it away without consuming it. The competent authorities judged this situation as an inappropriate waste of food and consequently the talent show was suspended a few days before the final. As for particular obligations, in China no registration is required for contests with purchases. However, if you organize a contest in a sales outlet and it has an area greater than 3000 m2, the promotion must be registered with the Chamber of Commerce by 15 days from the end. New privacy rules for prize-draw or prize-competition in China A new privacy law came into force in November 2021, China’s first comprehensive legal attempt to define personal information and regulate its storage, transfer and processing. In some respects it is similar to the GDPR, for example in the definition of “Personal Data” or the request for consent for data collection and on the rights of data subjects (right to information, objection, rectification, erasure, etc.). On the other hand, the issue of the transfer of personal data internationally is very delicate: it is legal only if you obtain an autonomous consent, if the necessary security assessments have been passed and if you have obtained a protection certificate from a professional agency/company. The sanctions are stricter than those of the GDPR: in fact, both administrative and civil and criminal sanctions are provided for. Do you want to organise a prize-draw or prize-competition in China? Contact us!
