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NLA floored over MTN ‘Go Rio’ Promo

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Mon, 27 Oct 2014 Source: Daily Guide

An Accra Fast Track High Court, presided over by Justice L.L Mensah on Friday ruled that National Lotteries Authority (NLA) did not have the authority to stop MTN from holding the MTN ‘Go Rio’ promotion.

NLA had secured an ex-parte injunction in an Accra Circuit Court against MTN’s Go Rio promotion in the run-up to the 2014 FIFA World Cup in Brazil, insisting the promotion was a lottery so MTN had to pay 20% of the SMS proceeds to NLA.

MTN prayed the High Court to cancel NLA’s injunction and also sought a qou warranto relief, challenging NLA’s authority to stop the promo. MTN consequently went ahead with the promotion, while the case was in court.

However, the court ruled that the MTN Go Rio Promo was not a lottery but an ordinary consumer reward promotion.

MTN also sought damages to the tune of GH¢2 million against NLA for preventing the promo for a few days.

The judge nonetheless did not grant the damages but awarded cost of GH¢20,000 against NLA.

The much-anticipated judgment was postponed several times.

The ‘MTN Go Rio’ promotion was designed by the telecommunication giant to reward customers with Kia Rio saloon cars, all-expense paid trips to and from Brazil, 32-inch Samsung LED TVs, Samsung Galaxy tabs, phones and free airtime over a period of four months.

Earlier, David Lamptey, counsel for NLA, had argued that the MTN ‘Go Rio’ promotion was a lottery being presented as a consumer promotion.

Mr. Lamptey said no person under section 4(1) of the Act could operate any form of lottery other than the NLA, adding that “no judge has the authority to grant immunity to a party from the consequences of breaching an Act of Parliament.”

He said MTN had failed to adduce any evidence in court to show that it was running a consumer promotion.

“It’s not a consumer promotion, they can never run away from it, high points are used to select winners, if you (MTN) want to organize a promotion make sure it does not stray into lottery,” he said.

Mr. Lamptey stated that MTN was clearly deceiving the public with respect to the number of cars it intends to give to winners at the end of the promo.

However, counsel for the applicants, Samuel Cudjoe, accused Mr. Lamptey of deliberately producing a ‘concocted’ story by DAILY GUIDE in court to argue his case.

He insisted that MTN Go Rio’ was purely promotional and intended to award subscribers.

Source: Daily Guide