Trade Promotions in the ACT and What You Need to Know

Are you considering running a trade promotion lottery in the Australian Capital Territory? It can be daunting sifting through the Lotteries Act 1964 (ACT) and understanding what you can and cannot do. So, we have set out some quick pointers for you to keep in mind.

Permits

Firstly, you need to confirm whether you are required to have a permit or if your competition is exempt under the Lotteries Act 1964 (ACT). If your trade promotion’s total prize value is under $3000, then you will likely not need a permit. If your trade promotion’s total prize value is over $3000, then you will likely require a permit in ACT, and there are a number of things you should keep in mind when running your competition. An experienced lawyer should draft your terms and conditions and apply for a permit.

Who?

The competition’s eligibility requirements should be clearly set out in your terms and conditions. For example, who can enter the competition? Is there an age limit? You should also set out your full business details and permit number, if required.

When?

Your terms should set the dates and times for entries to be received and the end date when a redraw will take place if required. You must notify the winners:

• Within the time set out by the Commission;
• Via direct means;
• In written format (email or mail); and
• Within three weeks.

If you are planning on running multiple competitions throughout a 12 month period, you should also consider applying for a blanket permit. A blanket permit covers you for 12 months provided the value of an individual prize doesn’t exceed $1,000.

How?

You should plan how the draw will be done, remembering that you must first draw the major prize and then the smaller prizes. The manner in which you should keep records is also regulated by the Commission and you should keep the results for a minimum of 12 months.

Why?

Is your trade promotion lottery intended to promote your business? If not you may not be considered a trade promotion for the purposes of the regulations. Consider the purpose of the prize when deciding whether you require a different permit.

What?

Depending of the nature of the prize, additional regulations may also apply to your trade promotion. For example, alcohol or tobacco products may be banned in certain circumstances.

Where?

If your prize involves travel, you must make all of the necessary information clearly available to the entrant, and include this information in your terms and conditions. You are also required to set out in your terms the location of the draw.

Conclusion

If your trade promotion lottery does require a permit, then you should take steps to ensure that you satisfy the permit’s requirements. You should also make sure that you are meeting all ongoing requirements. For example, reporting and drawing the prize correctly. If you have questions about drafting or running a trade promotion lottery, then get in touch with one of our competition lawyers about trade promotion lotteries on 1300 544 755.