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.
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…”. Other examples include “post a photo with the competition hashtag” or “send us a video explaining why you should win”. The winner will be determined entirely by merit either by judges or by vote.
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 prize draw or instant win. In Australia, a game of chance trade promotion is also known as a Trade Promotion 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. You will need a trade promotion permit in some states to operate a promotion where the winner is determined by an element of chance.
It is your responsibility to ensure that you are complying with the laws of your jurisdiction.
For example, South Australia only requires you to have a permit for a “major trade lottery” where the total prize pool value is greater than $5,000.
Normally the state regulator will require you to submit the competition terms and conditions 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 in Australia:
★ Promoter – details of the business running the competition, including ABN and contact details
★ Competition Period – when the competition starts and ends
★ Eligible Entrants – who is eligible to enter the competition
★ How to enter – instructions on how people can enter the competition
★ Draw date and time – when and where the prize draw will be held
★ Prize(s) – specific details of the prizes to be won, including the RRP or dollar value, as well as any restrictions or exclusions
★ Winner Notification and Publication – method in which the winner(s) will be contacted, and how winners will be published (online and/or in newspapers)
★ Unclaimed Prizes – what happens if any prizes are not claimed, including details for an Unclaimed Prize Draw
★ Privacy – consent to collect personal information from entrants for purpose of conducting the competition
★ Intellectual Property – permission to use content of entries for promotional purposes
★ Social Media – refers to any third party social media platforms (e.g. Facebook)
★ General Conditions – important legal terms
★ Competition Permit Number – add permit details for your state/territory when required
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. Consider including a simple prize structure e.g. major prize and a couple minor prizes. This could add a fun element to your competition or encourage more entrants if there are more chances of winning a 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 an authority is required if the total prize value for a single trade promotion exceeds $10,000. Fees starts at $421 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.
What are the important dates for the competition?
It is important that you clearly identify when the competition starts, when submissions will close including date and time, and when the winner will be announced. If there is a draw, the date and location of the draw must be included.
Different states have different requirements concerning when the draw must take place.
For example, In Queensland, the draw must be held in Australia and within 12 months of the commencement date of the promotion. In New South Wales and Australian Capital Territory, it must take place within 12 months of the date on which the permit is issued.
Is this Competition Terms and Conditions template legally binding?
All of our templates have been drafted by qualified Australian lawyers who hold an Australian legal practicing certificate.
We are affiliated with a commercial law firm based in Sydney.