'Illegal lottery' rocks Vodacom

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What happens if this is deemed to be an illegal lottery?.. do the people who have entered get their money back?
 
Woohoo!!! :o

This is not looking good for Vodacom or the ppl that have entered thus far!
And whats up with those crazy bills that have been run up!!??
Damn if you can afford to run up R150000.00 on an outside chance to win the car - Why the hell not fit that kind of expenditure into your budget to buy one? :eek: :confused:

Anyone here that has been taking part in it so far?
 
Whats the difference between this and just about every other sms competition? Sure the marketing has been excessive but at the end of the day if you're not smart enough to realise you're wasting thousands of Rands on a competition then you shouldn't have a cellphone.
 
Firstly, one needs to prove that the competition is in fact a lottery. Given the various loopholes in National Lotteries Act (e.g. paragraph 36), Vodacom may just escape censure, as is happening in FNB's millionaire promotion. The promotion is not so much as winning a BMW but rather promotion of some new on-net games from Vodacom, if info 100cars.co.za is anything to go by.
 
Points of concern!

Besides the entire article :p

"Any promotional competition in which the cost of an entry is more than a normal SMS, is illegal," said Sershan Naidoo, spokesperson for the National Lottery Board.
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You know that only they bake this pie!

Cape Town IT, internet and media law specialist Reinhardt Buys said the competition was illegal as the SMS messages encourage multiple entries, and thus contravened the Wireless Application Service Provider Association (Waspa) code of conduct, which regulates cellphone networks.
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So glad I'm with MTN and don't enter SMS competitions :D

Independent Communication Authority of South Africa (Icasa) spokesperson Sekgoela Sekgoela, said Icasa had referred all the complaints it had received to the National Lottery Board.
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Nothing new here with Icasa just passing the buck :rolleyes:
 
rzarector said:
Firstly, one needs to prove that the competition is in fact a lottery. Given the various loopholes in National Lotteries Act (e.g. paragraph 36), Vodacom may just escape censure, as is happening in FNB's millionaire promotion. The promotion is not so much as winning a BMW but rather promotion of some new on-net games from Vodacom, if info 100cars.co.za is anything to go by.
Click to expand...

Not sure about the law, but just look out if any of the National Lottery execs get a mixture of new cellphones and or Luxury Sedans if this matter gets dropped ;)

There certainly will be some corporate shanannigans.
Vodacom if proven wrong - will bust the powers that be's chops, about the negative impact it will have on the company and losses of revenue and or jobs (the job aspect is exaggerated - what do I know)

But capitalists mingled with the blend of communism and corruption in this country should see Vodacom walk away unscathed.
Winners without their cars and legal battles concerning susbscribers wanting a credit passed on their accounts :p

BMW SA in the meantime should organise some warehouse space, as 100 cars are likely to come back :D
 
It will not be an illegal lottery if the competition is exclusive to Vodacom customers - it is allowed under the current lottery law (unless it has chnaged and I am not aware of it) - that is how clubs, churches and schools are allowed to run ticket draws without having to apply for a lisence.
 
"Any promotional competition in which the cost of an entry is more than a normal SMS, is illegal," said Sershan Naidoo, spokesperson for the National Lottery Board.
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So virtually all promotional competitions that have been conducted so far are illegal!
 
Vodacom spy in our midst?

I'm gonna go waaayyyyy out of left field on this one.

Don't ya think that the fact this article pops up and the joining of a member whose post count of 2 - has been accumalated in this particular thread, defending the good name of this competition, kinda lets you feel that...

YES I'M SAYING THAT: (drumroll and insane laughter) rzarector has some vested interest in seeing this competition run smoothly :p :D

EDIT: Awaits the virtual klap and flame suit is now on level 3.
 
rzarector said:
Firstly, one needs to prove that the competition is in fact a lottery. Given the various loopholes in National Lotteries Act (e.g. paragraph 36), Vodacom may just escape censure, as is happening in FNB's millionaire promotion. The promotion is not so much as winning a BMW but rather promotion of some new on-net games from Vodacom, if info 100cars.co.za is anything to go by.
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What is in par. 36?
 
See my post SMS Spam
So the Caribbean Cruise is illegal. :p
Damn, I will have to settle for a trip to Robben Island as my overseas trip. :D
 
Don't ya think that the fact this article pops up and the joining of a member whose post count of 2 - has been accumalated in this particular thread, defending the good name of this competition, kinda lets you feel that...

YES I'M SAYING THAT: (drumroll and insane laughter) rzarector has some vested interest in seeing this competition run smoothly

EDIT: Awaits the virtual klap and flame suit is now on level 3.
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FYI, I'm not connected to Vodacom (except as a voice/data subscriber) nor affiliated to people running the competition. I was just trying to highlight the fact that the Vodacom promo is no different from other competitions which require sending premium rated SMS's. If this is not the right forum for me to discuss the issue (instead of flame suits and stuff) then I shall refrain from commenting. (And no virtual klaps!)
 
No, no, nvm that. You sound like you know about the lottery legislation. Tell us about the loopholes in the act.

Naidoo's opinion about the premium-rated smses sounds like a bit of a reach.
 
rzarector said:
FYI, I'm not connected to Vodacom (except as a voice/data subscriber) nor affiliated to people running the competition. I was just trying to highlight the fact that the Vodacom promo is no different from other competitions which require sending premium rated SMS's. If this is not the right forum for me to discuss the issue (instead of flame suits and stuff) then I shall refrain from commenting. (And no virtual klaps!)
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Aggh man - I was just taking the piss :p :D
Welcome!!
 
loopholes

To Shake&Bake, no offense taken.

About the loopholes: I take my cue from the FNB millionaire case currently before the Supreme Court. This is para. 36 of the NLA (1997) (I'm not aware of changes but the Appeal Judge did ask the Parliament to re-visit the whole Act):

36. ( 1 ) A lottery conducted as an incident of an exempt entertainment shall not be
unlawful if --
(a) all the proceeds of the entertainment. including the proceeds of the lottery.
after deducting--
(i) the expenses of the entertainment. excluding expenses incurred in
connection with the lottery:
( ii) the expenses incurred in printing tickets in the lottery and advertising of
that lottery: and
(iii) such sum. if any. nor exceeding the prescribed amount for any expenses
incurred in purchasing prizes for the lottery.
are utilised for the benefit of any deserving section of the public;
(b) none of the prizes in the lottery are money prizes;
(c) the total value of tickets sold or to be sold, is not more than the prescribed
amount;
(d) the opportunity of participating in lotteries contemplated in this section. or
such opportunity together with any other opportunity of participating in
lotteries or gambling. is not the only substantial inducement to persons to
attend the entertainment: and
(e) it is conducted for members of a society established and conducted for
purposes not connected with lotteries. gambling or betting.
(2) For the purposes of subsection ( 1 ) "-exempt entertainment" means a bazaar, sale.
fete, dinner. dance. sporting event or other entertainment of a similar character.
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This is just an excerpt; other paragraphs later on society lotteries can be used to show the loopholes. Anyway, from the above quoted para. (as well as other paras), it is simple for Vodacom to argue on a number of points including that that they're promoting some on-net games; the promotion is restricted to their subscribers, etc. I'm sure when they launched the promo their legal advisors could have devised the on-net game as a diversionary tactic in case legal problems.
I'm probably thinking on the top of my head here, but one thing is that a n Act similar to the National Credit Act is required to protect consumers from these and other games.
 
Shake&Bake said:
Woohoo!!! :o

This is not looking good for Vodacom or the ppl that have entered thus far!
And whats up with those crazy bills that have been run up!!??
Damn if you can afford to run up R150000.00 on an outside chance to win the car - Why the hell not fit that kind of expenditure into your budget to buy one? :eek: :confused:

Anyone here that has been taking part in it so far?
Click to expand...

My thoughts as well. But I think some people just get addicted to it (the idea of winning) and don't realise how many entries they have sent in. Also on Vodacom's part, it is unreasonable of them not to cap people's accounts at say 20% over their normal spend.
 
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