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Lawyer picks holes in NLRC incursion into sales promo

A legal luminary, Gbolahan Gbadamosi has declared that it is unlawful for the National Lottery Regulatory Commission (NLRC) to compel companies engaging in consumer sales promotions (CSPs) to pay levies.
He is of the opinion that NLRC is not operating within the confines of the law establishing it and has no power to close down any business premises for failure to pay the levies the Commission imposed on them.
Gbadamosi, who is an Associate with Rickey Tarfa and Co, a firm of Legal Practitioners and Notaries Public, says that CSP is a typical marketing technique that adds value to a product in order to achieve specific marketing goals; stating that some companies use CSPs for short term promotions which are not within the contemplation of the promoters of the National Lottery Act 2005.
He therefore noted that in line with Section 29 of the Act, it is illegal for the NLRC to issue letters alleging a breach of the provisions of the Act to some companies that engage in short term promotions. His words: “This section requires that it is mandatory that a ticket from any lottery regulated by the Act shall be sold on behalf of a licensee through personal applications, postage or electronic transmission…”.
According to him, companies conducting CSPs do not sell tickets, it is only additional value or incentive for patronising a particular product, as the consumer is definitely not engaging in a lottery game rather the customer gets value for money in terms of the product paid for. His words: “companies or corporate bodies conducting CSPs do not sell tickets; there are no proceeds out of which they are to pay the required percentages to the National Lottery Trust Fund.”
The legal practitioner also threw more light on Section 20 of the Act, which states that a licence granted shall be valid for a minimum period of 10 years and a maximum of 15 years. He said there is no valid reason why a company should apply for a licence for a CSP with a minimum duration of 10 years when the maximum duration of such a campaign is just for a period of six months.
“This section does not reflect the spirit and letter of the Act that companies utilising one marketing form or the other to create the sale of their products including CSP should apply for a lottery licence”, he stated.

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