I know im probably out of line saying this, but i think the punishment should be that the person who is posting should have there entry removed from the contest.
You're not out of line at all actually - that's probably the most easiest 'punishment' that a Competition Organizer can give out.
In more
severe cases, however, the offender may be barred from being able to participate in those certain type of competitions (for example, if he promotes his card idea in a comp. illegally, he can't join card design comps.), or being banned from all non-pvp competitions indefinitely.
...more punishments might be possible, but hopefully people won't force us to make such rulings.