What is a trade promotion?

A trade promotion occurs when an organisation, whether it is a business, community or charitable organisation, promotes its products or services by offering prizes to winners selected through a game of chance (e.g. a random draw) or skill.

For the entrant, entering a trade promotion can be as simple as entering a draw by sharing an image on social media, completing an online entry form or purchasing (or even expressing interest in) a product. Regardless of the method of entry it is important to have a set of terms and conditions for the promotion that comply with relevant regulations and that protect your organisation in case things go wrong.

Each state and territory in Australia regulates trade promotions under their own jurisdiction with their own set of rules. This means that if you’re conducting a national promotion you will need to comply with all of the requirements specified by each state. If your promotion is specific to one state, which will limit entry to residents of that particular state, your promotion will need to comply with the regulations in that state.

In addition to regulating the conduct of a promotion, each state and territory has rules regulating the advertising of a promotion. This includes specifying the minimum information that must be included in any advertisement (including print, television and radio).

Penalties

If a business does not comply with the regulations in respect of the promotion or advertising the promotion, there is a risk that the relevant state or territory government department will impose a monetary penalty or refuse to grant a permit which could prevent the promotion from proceeding.

CIE Legal can assist

Even if you have regularly run trade promotions, the laws in some States regarding promotions have changed.

CIE Legal can assist in all aspects of trade promotions including, drafting terms and conditions, submitting permit applications where required, reviewing advertising material associated with the promotion and conducting the prize draws. If you would like assistance with conducting a trade promotion or would like to know more,


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+61 3 9948 2470
info@cielegal.com.au
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