Regulations for Competitions: Trade Promotion Rules

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Regulations for competitions: Trade promotion rules

Competitions and promotions are great to grab attention, generate conversation and gather data but there are plenty of rules to be considered before they are brought to life.

Legal terminology defines most competitions as ‘trade promotions’ which are designed to boost awareness or sales for different businesses.

Some important things for businesses running competitions or trade promotions is to:

Have clear terms and conditions written to outline the rules and policies supporting the promotion – the business conducting the promotion will be classified as ‘The Promoter’
Make sure there is a clear privacy policy in place explaining how you store personal information.
Understand the state lottery or consumer affairs laws that govern the promotion in whichever Australian state or territory the competition runs in

There are two distinct types of competitions, and some states require permits under their different trade, consumer or lotteries regulations.

Game of skill: where a winner is chosen against certain criteria, such as writing an answer in 25 words or less
Game of chance: where all entries have an equal chance of winning, such as drawing a name out of a barrel

WHAT YOU NEED TO KNOW ABOUT COMPETITIONS

Many state and territory regulations have rules around publishing winners and clear terms and conditions for each promotion. Some also require permits, often based on prize value.

Generally, marketers need to adhere to the lottery and trade promotion regulations of each state and territory their planned trade promotion or competition runs in.

As always, many businesses require specific advice to ensure their promotion complies with state and territory laws.