Promosfera responds: prize-draws and -competitions in Japan 21 April 2021 Useful information for organising prize-draws and -competitions in Japan Today we speak with our international team that explains to us what prizes are permissible in Japan, whether it is possible to ask the winner to collect them personally and what are the rules applied in that country for prize-draws and -competitions with purchase. Is it possible to organise a prize-draw or -competition tied to a purchase? In Japan, it is possible to organise prize-draws and -competitions with a purchase obligation. In this country many types of prize promotions are allowed, with certain limits and exceptions. Specifically, in the case of prize-draws and -competitions with purchase, Japan has very precise rules regarding the value of the prizes at stake. The value of the individual prize awarded must comply with the maximum amount established by law, based on the purchase price of the product or service being promoted, and the total value of the prize pool must not exceed 2% of the estimated total sales of the promoted product expected during the prize-draw or -competition period. Can any kind of prize be offered? Yes, both goods and services may be offered in prize-draws and -competitions provided that, both in prize-draws and -competitions requiring a purchase and those free of charge, there are constraints related to the value of the prize pool as well as to individual prizes. In fact, even in the case of free-of-charge prize-draws and -competitions, precise rules must be respected, such as the one that sets a ceiling on the total prize pool of 10 million Yen. Is it possible to ask the winner to collect a prize in store? Yes, you can ask the winner to collect the prize in store. This saves shipping costs and creates a precondition for any purchase that the winner may make in store. The prize can thus become an incentive to purchase. The only condition to be met, in this case, is to maintain a proper relation between the value of the prize and the price of the least expensive item sold in the store. These limits do not apply to discounts which are not considered prizes. To learn more and to organise a prize-draw or competition in Japan, contact us!