Québec Repeals Its Contest Regime, Reducing the Regulatory Burden for Canada-Wide Promotions

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On October 27, 2023, Québec repealed the provisions of the Act respecting lotteries, publicity contests, and amusement machines pertaining to publicity contests and abolished the Rules respecting publicity contests entirely. These changes mark a significant regulatory shift in the province: previously, anyone conducting a contest that was open to Québec residents was required to adhere to a strict and unique set of rules administered by the Régie des alcools, des courses et des jeux (“Régie”), the Québec regulator that also has responsibility for alcohol and gaming.

Over the years, the cost of complying with Québec’s unique rules led some companies conducting promotional contests to exclude Québec residents from eligibility. Going forward, however, such exclusions should no longer be necessary: contest sponsors will no longer need to register the contest with the Régie, seek permission from the Régie for any modifications to a contest once it starts, file a winners’ report, or pay fees or duties to the Régie, among other things. Additionally, contest rules will no longer need to include certain previously prescribed disclosures.

One of the motivating factors behind this legislative change was to reduce the administrative burden on contest sponsors and make the regulatory landscape in Québec more in line with those of the other provinces. This initiative should accomplish that, but it should be noted that the Régie will continue to govern any contests that were declared prior to October 27, 2023, regardless of the contest’s start date. Additionally, the Québec Consumer Protection Act will continue to apply, as well as the “illegal lotteries” provisions of the Criminal Code, the disclosure requirements of the Competition Act, and general contracts law.

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DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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