Alessi’s “GIFTS FROM THE DREAM FACTORY” promotion in Austria, Germany, the Netherlands and Belgium 11 February 2021 Prize-draw and gift with purchase promotion to reward consumers in an international promotional initiative The “GIFTS FROM THE DREAM FACTORY” prize-draw was aimed at all customers who made purchases in one of the Alessi stores that participated in the promotional initiative. The promotion, which took place from 1 November to 24 December 2019, stipulated that consumers who had purchased Alessi products for a minimum value of €100 would receive an envelope containing a card. Winning was therefore down to chance and the prize awarded could be immediately collected from the store. However, the promotional initiative could not be carried out in all the countries involved in the same way, since the regulations in force in Belgium expressly prohibit chance-based promotions. In Austria, Germany and the Netherlands the prize-draw was organised with an element of chance: following purchase of Alessi products for the minimum value established by the rules, consumers received a promotional card indicating if and what prize they had won. The winners then collected their prize immediately from the store. In Belgium, on the other hand, where the regulations prohibit the organisation of prize-draws decided by chance, the promotional initiative was presented as a gift with purchase promotion. Following a purchase for a minimum value of €100, consumers received a promotional card indicating the list of prizes offered by Alessi, from which they could choose their own gift. The issue in question: how to organise a prize-draw/-competition in multiple countries When organising a prize-draw/-competition in several countries of the world, the first check to be carried out concerns the mechanism chosen. Each country has its own regulations on prize-draws/-competitions and gift with purchase promotions, and it is essential to check immediately that no specific prohibitions or restrictions are in force. The first issue to be evaluated when designing a prize-draw/-competition is the feasibility of the mechanism chosen with respect to the local regulations of the country which it is aimed at. This evaluation must take into account all the features of the promotion. Let’s have a look at some particular features. Prize-draws decided by chance One of the most commonly considered mechanisms, when speaking of prize-draws, is based on luck, but there are several countries in which it is forbidden to run prize-draws decided by chance, such as Belgium. In countries where chance-based promotions are prohibited, however, it is still possible to identify alternative methods of participation that meet the needs of the promoter in compliance with local regulations. Prize-draws/-competitions with purchase One of the main incentives in the organisation of prize-draws/competitions is stimulating purchases, however beware because there are various countries in which this type of prize-draw/competition is strictly prohibited, such as Switzerland and the USA. To involve countries where this prohibition on incentives tied to purchases applies, it will be necessary to find solutions that offer an alternative free entry route to participants. Prize-Draws/competitions using software In some countries, modern participation formulas using software can be a problem. For example, while it is mandatory in Italy for prize-draw/competition servers to be located in Italy, in Portugal and the Philippines the software must be delivered to the authorities in advance for them to check its operation. Once you have identified any limitations, an international prize promotion agency can help you find the ideal way to engage consumers in full compliance with the regulations.