Draw promotional scheme is legal or not?
20-Aug-2023 (In Civil Law)
We are a Pvt Ltd firm and we have a plan to sell our product Water purifier in a Draw scheme. in this scheme total customer or member will be 3000 and prizes for that member also 3000.and scheme will run on draw. a Customer can participate in this scheme by two type, one if a customer purchase a water purifier in it's original price Rs. 12000/- he will be part of this draw he will get a lucky coupon. every month we will organised draw and lucky winner get price and out from scheme, remain participate in next month and it's going on 12 month. after that remaining member get a Water purifier. Is it legal or not?
In case of Companies chooses to come up with a sales promotion scheme, it should demonstrate its genuineness by disclosing material information to the public/ultimate consumers in case of not attracting the provisions of unfair trade practices. The following practices such as disclosing the terms and conditions of the scheme, disclosing the relevant time period, disclosure of the date for the announcement of the scheme, disclosure of the methodology to choose a winner, disclosing the chances of winning a prize in a scheme etc., these disclosures would keep the trustworthiness, fairness and credibility of a Company in conducting such schemes.
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