Are you running a trade promotion in Western Australia? If so, you will need first to consider whether your competition falls under the definition of a trade promotion lottery under the Gaming and Wagering Commission Act 1987 (WA). Provided your business satisfies certain criteria, the Gaming and Wagering Commission will give a permit to run a trade promotion lottery. To protect your business, it is also prudent to comprehensively draft terms and conditions.
Running the Competition: Costs
The competition must be free to enter. If the cost is a phone call, then it cannot cost more than 55 cents. If the entrant enters the competition online, you cannot require him or her to pay an additional cost. You should also consider the competition’s purpose. For example, is it to promote your business’ goods and services?
Running the Competition: Paperwork
If entrants enter your competition via a form, then it must include the following:
- A description of the prize, and
- Competition terms and conditions (on a website or in a national newspaper).
Running the Competition: Promoting your Promotion
If you are promoting your competition via a television advertisement or video, you must describe the prize including the terms and conditions, or provide a link as to where viewers can find them. You should also set out the method of drawing the prize winner. In certain circumstances, you may be required to supply the competition’s conditions to the Gaming and Wagering Commission Act 1987 (WA).
Terms and Conditions: How Will You Run the Lottery?
Is your business running trade promotions in other states? If it is, you should ensure that you comply with the other states’ regulations and permit requirements.
The competition can require the entrant to purchase goods as a manner of entry, as long as it is not more than the usual price. For example, if the competition requires the entrant to buy a book to enter the prize, then the entry is the cost of the book. You cannot require the entrant to pay any additional charges.
Further, you cannot offer medical or cosmetic surgery as a prize under the Gaming and Wagering Commission Act 1987 (WA).
After the Competition Ends
The competition cannot run longer than for 12 months. After the competition’s closing date, you cannot wait longer than one month to draw the prize. You must also keep records relating to the prize for at least one year. The reason being is that under the Act, the Gaming and Wagering Commission has a number of requirements and powers to request documents, records and audit your competition.
Conclusion
Although you are not required to apply for a permit for a trade promotion lottery in Western Australia, you still need to comply with the regulations.
If you have concerns about trade promotion lotteries, speak to one of our competitions lawyers. We can also assist you with other legal needs you might have including drafting your competition terms and conditions.
Speak with one of LegalVision’s lawyers about trade promotion lotteries today by getting in touch on 1300 544 755.
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