Part III – Give Your Marketing Team the Gift of Legally Compliant Promos


Part 3: Promotion Terms and Conditions – Instant Prize  

Welcome back to our series on Promotion Terms and Conditions. In this final edition, we unravel the complexities surrounding Instant Prize Trade Promotions. If you’re considering running such a promotion, it’s crucial to understand the legal landscape to ensure a smooth and compliant campaign.

Understanding Instant Prize Trade Promotions

An “Instant Prize Trade Promotion” refers to a specific type of promotional activity where participants have the opportunity to instantly win prizes without waiting for a drawing or selection process. In this type of promotion, individuals typically receive immediate feedback on whether they have won a prize or not. Examples include scratch and win cards, gamified retail displays and mystery gift boxes. However, it’s important to comprehend the diverse regulations governing these promotions as they can vary by jurisdiction.

Is the Promotion a Game of Chance?

Determining whether your trade promotion falls under the category of a game of chance is the first step. If chance or a random element is involved in deciding a participant’s likelihood of winning, it’s considered a game of chance. For instance, if the type of prize awarded is random, participants can’t choose their prizes, and the number of gifts is limited, you might be dealing with a game of chance.

Legal Landscape in Various States

New South Wales: If your promotion involves chance or a mix of skill and chance and the prize pool exceeds $10,000, you’ll need an authority to operate.

South Australia: A licence is required for promotions consisting solely of instant prizes, regardless of the prize pool.

Australian Capital Territory: A permit is required unless the total prize pool is less than $3,000.

Queensland, Victoria, and Western Australia: Fortunately, no permits, licences, or authorities are required in these states.

Key aspects in the Terms and Conditions

Crafting comprehensive terms and conditions is pivotal for a successful promotion. Cover these key aspects:

Eligibility Criteria: Clearly define who can participate, including age restrictions and any other relevant criteria.

Entry Method: Specify how participants can enter, whether through a purchase, online registration, or another method.

Instant Win Mechanism: Clearly describe how participants will find out instantly if they have won a prize.

Prize Details: Provide a list of potential prizes, including descriptions, values, and any restrictions.

Prize Distribution: Outline how and when winners will receive their prizes.

Duration of the Promotion: Clearly state the start and end dates, including the time zone reference.

Entry Limits: Specify restrictions on the number of entries per person and any daily or overall limits.

Winning Odds: Disclose the odds of winning or provide information on how participants can inquire.

Notification of Winners: Explain how and when winners will be notified, including communication methods and timeframes.

Claiming Prizes: Provide clear instructions on how winners can claim their prizes, including any required documentation.

Unclaimed Prizes: Outline procedures for unclaimed prizes, such as redraws or reallocation.

By carefully considering these aspects and tailoring your terms and conditions accordingly, you can navigate the legal landscape and run a successful and compliant Instant Prize Trade Promotion.

If you need any help drafting your promotion terms and conditions, please get in touch via [email protected].


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