Are you running a trade promotion lottery in Victoria? You should first consider whether your competition satisfies the necessary requirements. Is it a game of skill or chance, or is it a combination of the two? Is it being run to promote your business? If you are running a competition as a charity, then you will have to meet another set of conditions.

If you are planning on running a trade promotion lottery in Victoria, it is important that you are aware of the updated regulations removing the requirement for a permit for a trade promotion, irrespective of the total prize value. There are still, however, regulations that your business must meet. We step through these below.

Entry to the Trade Promotion Lottery

A trade promotion lottery should be free enter. Although you can require the entrant to purchase a product to enter the competition, you cannot add additional fees. You cannot also add phone costs greater than 70 cents (including GST).

Your business may require the winner to cover incidental costs of receiving the prize. For example, travelling to an event.  If you are planning on running trade promotion lotteries in other states, be sure to comply with their respective regulations.

Conducting the Trade Promotion Lottery

The promotion must be for the purpose of promoting the business and your terms and conditions must include the following:

  • the date entrants must submit their entries;
  • when you will announce the prize winners; and
  • any other requirements.

Any advertising you employ should also include these details.

You must publish the winners if the individual prize is greater than $1000 and notify the prize winner in writing of their win.

Prizes and notifying winners

If you collect personal information for competition, you should set out whether you will also use this for any other purpose (i.e. further marketing).

You must provide the winner his or her prize within 28 days of drawing it, and you can substitute prizes in certain circumstances. Be careful to run the competition in a manner that is inoffensive. Critically, you must keep associated records with the running of the trade promotion lottery for at three years after the competition is complete.

Conclusion

Even though you no longer require a trade promotion lottery permit in Victoria, you must still meet your obligations under Victorian regulations. It is sensible to engage an experienced competition lawyer to assist you with drafting your terms and conditions, and to ensure compliance with these requirements.

LegalVision can also assist you with other legal needs to might have including marketing and advice compliance and consumer law issues. Get in touch with LegalVision and speak with one of our lawyers about trade promotion lotteries on 1300 544 755.

Edith Moss

Next Steps

If you would like further information on any of the topics mentioned in this article, please get in touch using the form on this page.