RUGBY WORLD CUP 2011 AND THE MAJOR EVENTS
MANAGEMENT ACT 2007
SAM MCIVOR, LAW CLERK
(Date goes here)
With the Rugby World Cup 2011 (“the RWC”) just around the corner, businesses are getting ready to capitalise
on the lucrative advertising opportunities and flood of consumer spending associated with an event of this
magnitude. The RWC is expected to draw in over 80,000 visitors to New Zealand, and an estimated television
audience of over 4 billion. Hence, many New Zealand and international businesses are taking steps to maximise
their earning potential and advertising activities. However, it is important for businesses to be aware of the Major
Events Management Act 2007 (“the Act”). It has implications for businesses particularly in relation to ambush
marketing.
The purpose of the Act is to prevent ambush marketing. Essentially, to protect major event organisers and
sponsors from illegitimate profiteering by parties not associated with the major event. The Act does this by
preventing parties that are not official sponsors of any major event from advertising or otherwise promoting their
goods and services, in a manner that suggests they are official sponsors or somehow associated with the major
event. A breach of the Act constitutes an offence which carries a maximum penalty of $150,000.
IS THE RWC A MAJOR EVENT?
A major event is any event which has been declared such by an Order pursuant to the Act. The GovernorGeneral may declare that an event is a major event on the recommendation of the Minister of Economic
Development and the Sports Minister.
The RWC has been declared a major event for the purposes of the Act. Therefore, all the protections under the
Act will apply to the RWC.
PROTECTIONS AGAINST AMBUSH MARKETING
Ambush marketing is a promotion tactic where a company associates itself with a particular event, or attracts the
attention of people attending or viewing the event, without payment being made for an official sponsorship.
The most notable example of ambush marketing occurred at the 1996 Olympics in Atlanta, where Nike (which
was not an official sponsor) advertised on billboards on all major routes to the stadium, handed out free Nike
banners to spectators attending the games, and erected a Nike Centre overlooking the Stadium. Reebok, who
paid $50 million to be the major sponsor of the games, were totally overwhelmed by Nike advertising. The
billions of people who viewed the games perceived Nike to be the major sponsor.
The Act contemplates two types of ambush marketing: by association and by intrusion. It is important to note that
the Act applies equally to small businesses as well as large international corporate organisations.
AMBUSH MARKETING BY ASSOCIATION
The RWC’s official sponsors are granted an exclusive right to create an association with the RWC. Those who
are not official sponsors do not have the right to create and benefit from an association with the RWC.
The Act provides that no person may, during the protection period for a major event, make any representation in
a way likely to suggest to a reasonable person that there is an association between the major event and goods or
services, a brand of goods or services or a person who provides goods or services.
To that end, the Act has declared various emblems and words as “major event emblems” and “major event
words”. The use by a person of these emblems or words, or anything closely resembling them, is deemed an
automatic breach of the Act. Breach of the Act is not overcome by using the words “unofficial” or “unauthorised”
in conjunction with the major event emblems and words.
These emblems and words are set out by the Major Event Emblems and Words (Rugby World Cup 2011) Order
2008. Some of the key RWC emblems and words are as follows:
1. “Rugby World Cup”, “RWC”, “World Cup 2011”, “Rugby New Zealand 2011” and “Total Rugby”.
This has implications for businesses. Businesses, for example, cannot advertise their goods or services in a
magazine or newspaper where the advertisement includes the protected words “Rugby World Cup”. Nor can a
retailer have a “Rugby World Cup Sale”. Further, the Act prohibits RWC tickets being offered as prizes in
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195 Marshland Road Shirley PO Box 4341 DX WP21518 Christchurch 8140
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P 64 3 379 7622 F Commercial 64 3 379 2467 F Litigation 64 3 353 0247 AUCKLAND P 64 9 363 2751 F 64 9 363 2755 EMAIL [email protected]
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fundraising activities, competitions, and other promotional activities as it would create an association between the
‘fundraising’ business and the RWC, to which the business is not entitled.
A business may engage in the above only if written consent is obtained from the major event organiser. The
protection period for the RWC began on 11 September 2008 and continues until 21 November 2011.
AMBUSH MARKETING BY INTRUSION
In addition to the association protections created under the Act, intrusion provisions are also in place.
These provisions allow the Minister of Economic Development (the “Minister”) to declare ‘clean zones’.
Restrictions apply to clean zones and clean transport routes which are yet to be declared by the Minister. No
street trading or advertising is allowed within the clean zone without the written authorisation of the major event
organiser. Unlike ambush marketing by association, the advertisement does not have to create an association
with the RWC to breach the Act.
The Minister has declared the following areas as clean zones:
1.
The RWC match venue;
2.
The RWC match venue’s immediate surroundings;
3.
Any other necessary area to allow the major event activity to occur; and
4.
‘Clean transport routes’
Clean transport routes include motorways, state highways or train lines (or areas directly proximate to these)
which are 5km or less from the clean zone and likely to be used by a ‘substantial’ number of people to travel to
and from the clean zones. Clean zones and clean transport routes do not include private land and buildings,
other than billboards, the venue of the major event and land the public has access to.
A business, for example, cannot place an advertisement outside the RWC match venue without written
authorisation. Also, as was seen in the recent FIFA World Cup 2010, a business cannot give spectators clothing
or banners advertising its products to people who are about to enter the RWC match venue. This would
constitute advertising within the clean zone and would be in breach of the Act.
Further, advertising is not permitted which is clearly visible from within the clean zone. This applies even to aerial
advertising. However, it is permissible for advertisements outside the clean transport routes to be visible from
within the clean transport routes.
There are various exceptions to the Act. One of the exceptions applies where the advertising is carried out by an
existing organisation continuing to carry out its ordinary activities in connection with honest practices in industrial
and commercial matters. This will be a matter of fact and degree in each case. For example, if a business has
been advertising in the same place within the clean zone for a number of years and did not radically change its
advertisement, it is likely that the exception will apply. The same cannot be said for a business that takes
advantage of its position and conducts various other advertising strategies within the clean zone.
It is important for businesses to be aware of the Major Events Management Act 2007. If you are intending to
advertise your business during the protection period and are unsure whether you will breach the Act, or you
require any advice on the Act’s various implications, contact Wynn Williams & Co. We will provide sound advice
and practical solutions.
CHRISTCHURCH
Homebase
Unit B
195 Marshland Road Shirley PO Box 4341 DX WP21518 Christchurch 8140
New Zealand
P 64 3 379 7622 F Commercial 64 3 379 2467 F Litigation 64 3 353 0247 AUCKLAND P 64 9 363 2751 F 64 9 363 2755 EMAIL [email protected]