Part 1: Promotion Terms and Conditions – Game of Chance
Running promotions can be an exciting way to engage your audience and boost brand awareness, but it’s crucial to navigate the legal landscape carefully. In this three-part blog series, we’ll explore the intricacies of different promotion types, shedding light on the key things to include in your terms and conditions. In Part 1, we focus on “Game of Chance” promotions and the key elements you need to consider to be legally compliant.
Understanding Game of Chance
A Game of Chance is a promotion where the outcome is determined purely by luck, such as winners being chosen through a random draw. Unlike skill-based competitions, participants don’t need any particular skill to be crowned the winner.
Permit Requirements
When running a national promotion involving a Game of Chance, it’s essential to comply with the trade promotions legislation in each state. Notably, permits are required in New South Wales (NSW), Australian Capital Territory (ACT), and South Australia (SA). The permit requirements are based on the total prize value, as outline below:
ACT: A permit is necessary if the total prize value exceeds $3,000.
NSW: A permit is required for competitions with a total prize value exceeding $10,000.
SA: A permit is required if the total prize value is over $5,000, or if the competition involves an ‘instant prize’ like a scratch card, or if the prize is drawn electronically.
Ensure you check the specific rules and permit application fees for each state on their respective authority websites. Applying for permits early is advisable to avoid campaign delays.
Permit Numbers Must be Displayed
You must include the permit number/s (for each State where the permit applies) in your terms and conditions and marketing materials.
Key Aspects to Cover in Terms and Conditions
Crafting comprehensive terms and conditions is vital for a legally compliant Game of Chance promotion. Here are key elements to include:
Promotion Details: Clearly outline the nature of the promotion.
Entry Requirements: Specify how participants can enter, including entry open dates and when entries close.
Prize Description: Clearly define what the prize comprises.
Eligibility: Detail any restrictions, such as geographic location or age requirements.
Winner Selection: Specify the date the winner will be drawn and explain the method used to select the winner, for example that the winner will be selected at random.
Claiming the Prize: Provide specifics on when and how winners will be notified and how they can claim their prize.
Unclaimed Prize: Clearly outline the procedures for redraws in the event a prize goes unclaimed.
Publicity and Marketing: Address whether participants’ entries or information may be used for promotional purposes. If so, obtain consent and specify how their information will be used ensuring you comply with your Privacy Policy.
Social Media Advertising Considerations
If your promotion involves social media advertising, be aware that each platform has specific requirements. Include disclaimers that the promotion is not associated with the social media platform. Ensure your terms and conditions are accessible on your website and your social media promotion collateral refers your audience to the terms and conditions on your website.
Running a legally compliant Game of Chance promotion requires careful attention to permit requirements and meticulous crafting of terms and conditions. Stay tuned for Part 2, where we’ll delve into Game of Skill promotions.
If you need any help drafting your promotion terms and conditions, please get in touch via [email protected].