16 April 2021 | Reading time: 2 minutes
Trade promotions, such as competitions and other promotional games, are winners for generating hype for your brand. However, trade promotions are heavily regulated and organisations must ensure they comply with relevant laws, including state and territory trade promotion laws.
Below we discuss key considerations for running a trade promotion.
1. T&Cs apply – be alert to the fine print.
While the requirements for terms and conditions differ in each state and territory, trade promotion terms and conditions generally need to include at least the following information:
|Eligibility criteria||Who can enter the competition? Consider any residency and age requirements.|
|Entry requirements||What do entrants need to do to enter the competition?|
|Promotion period||When does the competition open and close?|
|Prizes||Total prize pool value and details of prizes (including any conditions regarding the receipt, acceptance or use of a prize).|
|Draw||How, when and where the draw (and any redraws) will take place.|
|Winner announcements||When and how winners will be announced.|
|Promoter details||Full name, address and contact details of the promoter.|
2. Chance, skill or both?.
In Australia, trade promotions are split into the following 2 categories:
3. Are permits required?.
Games of skill do not require permits in Australia. Whether a game of chance requires a permit will depend on which states and territories the trade promotion is running in and the total prize pool value.
4. Keep it clean.
Trade promotion laws prohibit, or restrict the award of, certain prizes (eg tobacco products, firearms or ammunition, weapons, cosmetic surgery and alcohol). Furthermore, trade promotion laws, amongst other advertising requirements, prohibit advertising that:
5. Other legal considerations.
In addition to trade promotion laws, take care to ensure your terms and conditions and the conduct of your trade promotion comply with other laws, including:
6. The fun stops here.
Failing to comply with trade promotion and other relevant laws, including failing to obtain a permit (if required) may attract fines of varying amounts in each state and territory. Ensure you are informed about, and allow enough lead time to ensure compliance with, your obligations.
Get in touch with the Bespoke team if you want to discuss further.