The May 2007 issue of Shutterbug Magazine touched on this issue in their special feature called
"Privacy Rights and Copyrights: What Photographers Need to Know". Don't know about Canada, but this is how it is in the States.
From what I understand from the article, photo contests are considered "commercial use" and therefore would require model releases. Quoting from the article, it states:
Quote:
Basically, getting privacy rights released to you with a model release is necessary if you plan to use the images for any "commercial" use such as websites, photo contests, annual reports, advertising, product promotion, promotional brochures, posters, greeting cards, calendars--even your own marketing--as these are all considered non-editorial use.
Shutterbug Magazine - May 2007, pg 30
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I would guess that Canadian Law is probably not that different than American Law in this regard.