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House competitions - guidance |
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Increasing numbers of (desperate?) homeowners are trying to sell their homes via competitions. In response to this increase, the Law Society has issued guidance.
One particular area to watch out for is whether the competition amounts to an illegal lottery or prize draw. Under Gambling Act 2005, lotteries cannot be operated for commercial or private gain, although the usual way to avoid that rule is by introducing a degree of skill in the event and therefore turning it into a prize competition (which must involve (i) skill, (ii) judgment, and (iii) knowledge). So, something more than a simple prize draw is needed – and that will usually mean asking a not-too-difficult question. © Practical Lawyer
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December 2008 |