What are Competition Terms and Conditions?
Competition Terms and Conditions are the legal terms which define how a competition will be run. These terms include who can enter, what the prize is, when the prize will be drawn and so on.
Competitions (also know as trade promotions) are used to promote your business and bring your brand to a wider audience.
Types of Competitions
In Australia, there are two types of promotional competitions:
1. Game of Skill
In this competition, participants must put forward an entry, or show their ‘skill’. For example, “describe in 50 words or less the best party you have ever been to”. Other examples include “post a photo with the competition hashtag” or “send us a video explaining why you should win”.
2. Game of Chance
This is a competition where winners are picked at random. The participant does not need to show any skill, and all entries are equal. An example of a game of chance is a lottery.
Do I need a permit to run a competition or trade promotion?
Each state and territory in Australia has its own laws in relation to trade promotions. It is your responsibility to ensure that you are complying with the laws of your jurisdiction.
For example, NSW law requires businesses wishing to run a trade promotion to apply for and obtain a trade promotion lottery permit. Visit https://www.service.nsw.gov.au/services/business-industries-and-employment/running-business/fundraising-and-trade-lotteries for more information on eligibility, fees and how to apply.
Normally the state regulator will require you to submit the competition terms and condtions BEFORE they will issue a permit. Make sure you allow enough time to complete your T&Cs and arrange the permit before you launch your competition.
What does this Competition Terms and Conditions template include?
Our Competition Terms and Conditions template covers everything you need for a game of chance competition:
★ Competition Period
★ Eligible Entrants
★ How to enter
★ Draw date and time
★ Winner Notification and Publication
★ Unclaimed Prizes
★ Social Media
★ General Conditions
★ Competition Permit Number
Do we have to include the full Terms & Conditions in all of our marketing material?
You need to publish T&Cs in any advertising material which promotes the competition (e.g. flyers, email marketing etc). However, this is often not practical because of limited space available. Therefore, it is acceptable to include only the most relevant information and then refer people to the full T&Cs (which are usually available on your website).
Be careful to avoid false or misleading advertising.
Who is eligible to enter?
If you want to limit entries, it is important to clearly state who is eligible to enter in your competition terms and conditions. Often businesses exclude people under the age of 18, employees, family members and contractors or suppliers related to the business. We have included a clause in our competition terms and conditions template to cover all of these circumstances.
What details of the prize should we include in our T&Cs?
You should be as specific as possible about the details of the prize(s). Your description should include the value of the prize (RRP or total dollar value), any special conditions, how long the prize is valid for and anything that is NOT included as part of the prize.
How many times can people enter a competition?
This is up to you.
You could limit the competition to one entry per person, or allow for multiple entries.
We have included wording for both options in our competition terms and conditions template.
Do I have to pay any government fees to run a trade promotion?
It depends on the state or territory you are in.
Some states charge an application fee for trade promotions. For example, in NSW the application fee starts at $80 and it increases depending on the value of the prize.
In other jurisdictions, you may not have to pay any fees. Make sure you check the relevant government website before you get started.