Giveaways and competitions are a great way to promote your business and get new customers excited. However, there are regulations you have to follow both in advertising and conducting your event, so understanding these regulations and having clear terms and conditions set out is key. In this article, we’ll talk about what trade promotion lotteries are, as well as a couple of things to know when conducting one in Victoria, Australia!
Please note that this article focuses on the requirements of Victoria, Australia. Further requirements apply for other States or multi-state trade promotion lotteries.
What is a trade promotion lottery?
Trade promotion lotteries are lotteries that aim to promote your business. You might have seen these through giveaways or other competitions—think of posts online where you see some form of ‘Comment below for a chance to win!’.
If your event includes any sort of chance in the drawing of winners, they are trade promotion lotteries. This applies even if they involve skill-based activities . In Victoria, trade promotion lotteries are regulated by the Gambling Regulations Act 2003 and Gambling Regulations 2015. However, each State has their own trade promotion laws, so you will need to ensure to comply with all of them depending on which States you allow entry from.
Trade promotion lotteries must be free to enter. If entrants have to spend money on phone calls, text or mail to enter, this price cannot exceed $1, including GST. However, you can set a condition that buying a product or service from your business comes with a free entry to the trade promotion lottery — you just can’t sell the lottery entries as a standalone product. You must also sell this product or service at its regular retail price.
In Victoria, you don’t need a permit to run a trade promotion lottery, but this isn’t the case for all states in Australia. If you’re running an Australia-wide trade promotion lottery, you will fall under jurisdictions outside of Victoria as well, so make sure that you have the relevant permits!
You need to ensure that your trade promotion terms and conditions comply with laws and regulations, so it is recommended to have a lawyer draft these carefully for you.
How do you advertise your trade promotion lottery?
According to Victorian legislation, any advertisement for your trade promotion lottery should include:
- When entry closes
- Entry requirements
- When and where it’s drawn
- When and where winners’ names will be published
How do you conduct the lottery?
Of course, all entries must have an equal chance of winning. You also have to send the prize within 28 days after the lottery has been drawn.
The next thing to do is tell the winners in writing that they have won your trade promotion lottery. If the prize of the trade promotion lottery is worth more than $1,000, you also have to publish the names of the winners. This can be in:
- Newspapers circulated in Victoria
- Online for at least 28 days; or
- The platform on which you advertised the trade promotion lottery, given it was the only platform you advertised the trade promotion lottery on.
What next?
Trade promotion lotteries may seem straightforward, but writing your terms and conditions and running your event within guidelines can be challenging, especially if you allow entry from multiple States or Australia-wide. For help with your business’ giveaways and competitions, contact us for a free, no-obligation chat.
