Lotteries And Sweepstakes Competitions Must Be In Compliance With The Law

The Consumer Council of Fiji is closely monitoring the situation surrounding a recent competition promoted by a popular personality, in which consumers were asked to pay $2 via MPAiSA for a chance to win $1,000. While the Council commends the swift action taken by the Fiji Police Force and the vigilance of consumers who alerted authorities to this competition, it strongly emphasizes the need for all lottery and sweepstakes competitions to adhere strictly to the law.

Lotteries and sweepstakes games in Fiji are governed comprehensively by the Gaming Act of 2009, which provides detailed and specific guidelines for their operation. This legislation clearly stipulates that any competition must specify whether it is for charitable purposes or for the purpose of making a profit. Furthermore, any competition offering prizes valued at more than $100 requires prior approval from the appropriate authority as outlined in the Act, which also requires that the draws are done transparently in the view of the public, or broadcast to the public. These provisions are designed to ensure transparency and to protect consumers from being misled or exploited, and without fulfilling these requirements, the competition may be illegal.

The Council stresses the importance of understanding and complying with the legal requirements before initiating any such competitions. Familiarity with the law and conducting thorough research is crucial in preventing any potential harm to consumers, whether intentional or accidental. Ignorance of these legal obligations can result in severe consequences, including the erosion of public trust and legal penalties for organizers.

“In this particular instance, the Council is encouraged by the proactive approach taken by consumers, who identified the red flags and promptly reported the matter to the authorities,” says Council CEO Seema Shandil. “This demonstrates the growing awareness within the community.”

"We acknowledge that an investigation is ongoing, but there are critical issues that warrant attention. For instance, the law requires that a license be sought before running such competitions —was this requirement fulfilled? Additionally, was it clearly stated whether the competition was intended to be for profit or not? How transparent was the entire process? This situation also highlights concerns about other similar competitions held across the country, where organizers might not fully understand the legal requirements. However, it's important to note that lack of knowledge of the law does not exempt one from compliance,” added Ms Shandil.

The Council urges all entities considering the organization of lottery or sweepstakes competitions to exercise due diligence and seek appropriate legal advice. The Gaming Act of 2009 comprehensively covers the legal requirements for such activities, and adhering to these guidelines is essential to maintain fairness, transparency, and consumer protection. Ensuring compliance with the law is crucial to safeguarding consumers from exploitation and preserving trust in such competitions.

For further guidance on conducting lawful competitions or to report any concerns, please contact the Consumer Council of Fiji, via the toll-free number 155, or complaints@consumersfiji.org.

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