Note: This advice is given by the CAP Executive about non-broadcast advertising. It does not constitute legal advice. It does not bind CAP, CAP advisory panels or the Advertising Standards Authority.
The Gambling Act & the CAP Code
Unique bids or reverse auctions
The Gambling Act & the CAP Code
The Gambling (Licensing and advertising) Act 2014 took effect on the 1st November 2014. It contains provisions relating to the licensing of gambling operators advertising or offering remote gambling facilities to consumers in the UK. We urge you to seek legal advice regarding the requirements of the act if you are unsure.
Under section 16 of the CAP Code, marketers should not exploit the young or vulnerable nor imply gambling can solve financial or personal problems. All gambling ads must comply with the Code and the law. The Gambling Act does not apply outside Great Britain. Specialist legal advice should be sought when considering advertising any gambling products in Northern Ireland or the Channel Islands.
Unique bids or reverse auctions
The Copy Advice team has, in the past, been approached to give advice on what is commonly known as ‘unique bid’ auctions in which significant ‘prizes’ are either given or sold to the participant who guesses the lowest (or highest) unique number. Sometimes the marketers will give an upfront indication of the ‘price’ similar prizes have gone for in the past; sometimes they go back to the bidder and say the bid is not unique and often very little, if any, information is given.
CAP has taken legal advice and believes that this type of promotion could be illegal lotteries because the outcome may depend more on chance than on skill.
The Gambling Commission
The Gambling Commission have information on their website for those organising a unique bid or reverse auction. However, please note it is the responsibility of those organising the auction to ensure it is compliant with the law. If in doubt, you should seek independent legal advice.