for any contest i've done or been a part of - it's been percentage lost over the entire contest - not lbs lost...
a heavier person is bound to lose more weight than a thinner person - so by keeping it to percentages -it all pretty much balances out.. and some folks lose more some weeks than others - so by doing over the entire challenge - again it balances out to some degree.
But one challenge I did -because it was for money and people do strange things for money - if a person lost more than 3 percent of total
body weight in a week - they got penalized... (1 percent I'm going with is the healthy range to lose)