Myth Buster

Scenario

You are the owner of a small bakery. To increase sales, you hold a ‘contest’, whereby winners will be picked at random. Customers who buy above RM10 get a chance to participate in a ‘slogan writing contest’ by writing a slogan to have the chance to win a big prize.

Do you know that if you don’t handle this properly, you can be guilty of an offence? You can be fined up to RM50,000 and also be punished with a term of imprisonment not exceeding three years.

Mythbusted.

Many do not know this but holding or offering contests and promotions with prizes to the public can amount to ‘gaming’ or in layman terms ‘gambling type of scenario’ which is an offence under the Common Gaming Houses Act 1953 (Revised – 1983).

Contests and promotions such as the above should focus on the element of skill (e.g. creativity in slogan writing) and limit as much as possible the element of luck in determining the winner.

To ensure that the contests and promotions with prizes to the public which you intend to hold does not go against the law, one can also have a look at the Ministry of Finance Malaysia guidelines on holding contests in the form of promotion.