Lottery Authority drags Airtel to court

March 16, 2011 (Page 3 Lead)

THE National Lottery Authority (NLA) has dragged Airtel Ghana Limited, a mobile telecommunications network, to court over Airtel’s “freedom to dream” promotion which is currently being run in the media.
Joined in the suit is the National Communications Authority (NCA).
The NLA is praying the Accra Fast Track High Court to grant an interim injunction to restrain Airtel and its agents from promoting, sponsoring and advertising the ongoing purported promotion or engage in a game of chance or lottery in any form.
The writ of summons is also praying the court to order the NCA to exercise its statutory mandate under the National Communications Authority Act of 2008, Act 769, and the Electronics Communications Act, 2008, Act 776, to develop guidelines for marketing promotions by mobile network operators in accordance with international best practices of telecommunications in other jurisdictions in order to protect consumer interest and prevent illegal activity disguised as marketing promotions.
The plaintiff is further praying the court to restrain Airtel and its agents from allowing Airtel’s mobile network platform to be used by third parties to promote, conduct, run and advertise illegal lotteries or games of chance disguised as marketing promotions, including the ongoing “Crack the Safe and Win”.
Under the promotion, which is running from February to the end of March 2011, Airtel subscribers must, among other things, either activate a new SIM card or purchase and load top-up airtime with minimum cash value of GH¢2 or usage of minimum of 50Gp airtime, all within a 24-hour period, to enable participants to win a broad range of cash rewards and a grand draw prize of GH¢400,000.
The NLA is, accordingly, praying the court to declare that Airtel’s “freedom to dream” promotion is not a promotion but, in fact and in law, a lottery which is prohibited by Section 4 of the National Lottery Act of 2006 (Act 722).
It is also urging the court to declare that Airtel’s operation of lottery without the requisite statutory licence is illegal and unlawful because Airtel has failed to comply with the mandatory statutory provision of Section 4 of Act 722.
The NLA is also asking the court to declare that Airtel has committed a crime, as provided by the National Lotto Act and the Gaming Act of 2006, Act 721, by engaging in lottery and or games of chance without a statutory licence.
The plaintiff is praying the court to order Airtel to account for all proceeds and payments it has received from participating subscribers from the start of the promotion till the date of the cessation of the said promotion.
The plaintiff is further praying the court for a permanent injunction to restrain Airtel and its agents from promoting, sponsoring and marketing “freedom to dream” and “crack the safe and win” lottery game, together with other illegal lottery games or games of chance disguised as marketing promotions and now being or about to be implemented, sponsored and promoted.
Under the writ of summons, the NLA is asking for general and special damages, cost and any other relief the court may deem fit.
With regard to the NCA, the NLA is asking the court to declare that it is the statutory function and duty of the NCA to classify communication services provided under the mobile network and, therefore, statutorily bound to determine whether Airtel’s purported promotions could pass as value added services or permissible communications or marketing services under the National Communications Authority Act of 2008, Act 769.
The plaintiff is urging the court to declare that the NCA had the statutory and regulatory authority and responsibility to restrain Airtel from sponsoring and promoting the “freedom to dream” promotion and all other illegal lotteries and or games of chance which are disguised as marketing promotions in order to protect the rights and interests of the millions of consumers who unknowingly participate in illegal lottery.
The NLA is further praying the court to direct the NCA to take regulatory steps to protect the consumer interest of millions of mobile network subscribers who unwittingly participate in the illegal lottery, as well as grant any other relief it deems fit.