Draw scheme for promotional of products is legal or illigal ?
Dear Sir, Good afternoon.
we are looking your guidance in below promotional plan, please consider all legal issues and advice us best, is it legal? or anything?
We are a Pvt Ltd firm registered in Madhya Pradesh, India have a plan to sell our product LED TV 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 LED TV in it's original price Rs. 12000/-
he will be part of this draw he will get a lucky coupon from us and after completing all 3000 scheme will start. every month should be certain no. of draw will be organised and winning member get high cost prizes like Bike, Car, LED TV, refrigerator etc.
second if he has not whole amount and he want to enroll in this scheme, than he has to pay amount in installment of all amount (12000) which is equally distribute in all month, in this case, during monthly draw he get lucky prize he can stop paying installment and get winning prize if he don't want purchase LED TV. if he also want LED TV than he can continue installment but after winning any gift he can't participate any other draw.
this draw continue up to 12th month and after that remaining all member which doesn't won any price get LED TV of their total installment cost.
all biggest gift and expenses cover by margin of our product's.
I am confuse about lottery act, and consumer protection act, please clear this scheme is legal or not.