Prize Operations are promotional initiatives that award a prize to all who buy or sell a product or service.
Prize Operations aim to promote knowledge of goods, services, companies, brands or to promote the sale of products and services. This is done through the attraction of awarding prizes.
The prizes consist of goods (including even real estate), services, and price discounts.
However, prizes cannot include money, public and private loan securities, shares in corporate capital and mutual funds and life insurance policies.
When planning a Prize Operation, the promoting company must be able to make an adequate estimate of the redemption of the initiative, i.e. the activity is based on the predicted number of end users expected to respond and join the competition and gain the right to the prize.
As a word of caution, it is important to note that it is always better to manage risks and legal implications carefully during planning so that consumer acceptance of the campaign are not at much higher (or much lower) levels than assumed in the planning phase and declared in the regulation of the initiative.