Most businesses will use a promotional code to boost sales during special events or at certain times of the year, such as at the end of the financial year or when doing a stock clearout. If you are operating a business, you should already have a standard set of business terms and conditions. Your business terms allow you to run your business transparently. Furthermore, a good set of terms may increase business in some cases. In this article, we will discuss different types of promotional codes, the key terms to include in your promotion code terms and conditions, and some additional considerations to be aware of.
What Promotion Code Can I Use?
There are endless ways to promote your business. Some of the most common promotional codes are in email marketing campaigns. For example, customers who sign up for your direct marketing list may receive promotional codes. One important thing to note is ensuring the customer receiving the promotional code understands and consents to sign up for your direct marketing. Australia’s spam laws also have additional obligations.
Other promotional activities include using vouchers to entice customers to purchase from your shop or using influencer marketing to spread awareness of your brand further on social media. If you choose to engage an influencer, ensure you also understand the regulations surrounding influencer marketing before pursuing it.
What to Include in the Terms and Conditions
Regardless of how you get your promotional code out into the world, there are key concepts to include in your promotion terms and conditions. Let us explore a few of these.
1. How to Use It
What good is a promotion if no one can reap the benefits? A good starting point for any promotional code terms and conditions is to describe how the code can be used.
2. Time Period
Your terms should outline the time period for which the promotion will be valid. This should include the start and end dates. Additionally, if you offer goods or services to international customers, it is also prudent to have the relevant time zone. This will protect your business and avoid any doubt.
3. Limitations
If your promotion has restrictions on its use, you should clearly state this in the terms.
4. Value
The promotional code should be for a specific value or discount and not redeemable for cash or anything else. You must clearly state this in the terms.
5. Refunds
Consider and note how your current refund policy or warranty against defects might interact with the promotional code. Suppose a customer makes a purchase is made using a promotional code and requests a refund or changes their mind. Your policy should outline whether this is possible.
Before sending electronic messages, learn how your business can comply with the Spam Act with our free Spam Consent Factsheet.
Marketing Considerations
Beyond the considerations mentioned above, you must ensure that the promotion of your promotional code does not involve any misleading or deceptive conduct. Misleading and deceptive conduct occurs when your conduct induces or can induce your customers in error. Regardless of your intent, if the conduct leads a consumer to purchase a product or service that they would not have otherwise purchased if they had known certain information, this will be considered misleading and deceptive.
For example, in the context of promotions, an example is when you offer a promotion. However, the individual has to buy at least $100 worth of goods before accessing a discount or free item. Other than clearly advertising the scope of the promotion, a well-drafted set of terms and conditions can mitigate any additional risk of confusion.
Key Takeaways
Promotions are a great way to increase sales and raise awareness of your brand. However, any promotion you run needs to comply with your obligations under Australian Consumer Law, Spam Laws and any other applicable regulations.
If you need help drafting your promotion terms and conditions or understanding your obligations, our experienced contract lawyers can assist as part of our LegalVision membership. For a low monthly fee, you will have unlimited access to lawyers to answer your questions and draft and review your documents. Call us today on 1300 544 755 or visit our membership page.
Frequently Asked Questions
Yes, you can run a single-day promotion. However, you must ensure this is clear when advertising and in the promotion terms and conditions.
You can request customers provide their email addresses in exchange for a promotional code. Still, you should note how you will use the email address, whether in direct marketing or otherwise. The best practice is to have customers opt-in to receive email marketing, but there are some cases where their consent can be inferred.
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