What Legal Rules Apply to Running a Trade Promotion in Australia?
Introduction
Competitions and giveaways are a great way to attract customers, but they’re tightly regulated in Australia with each state and territory having its own laws. Running a trade promotion without complying with the rules can expose you and your business to fines and reputational risk. This article explains the key laws and what to consider before launching a promotion.
Do You Need a Permit?
Not all promotions require a permit. The requirements for a permit depend on:
- The value of the prize (cash or goods)
- The state or territory where the promotion runs
- Whether it’s a game of chance or skill
Consumer Law Obligations
Even if no permit is required, consumer protection laws and rules regarding illegal lotteries and raffles still apply. Trade Promotions must:
- Be fair and transparent
- Honour advertised prizes
- Avoid misleading conduct
Example: A business promising “unlimited prizes” but limiting winners breaches the Australian Consumer Law.
Common Mistakes to Avoid
Many businesses inadvertently breach the trade promotion laws. Some common breaches we see include:
- Charging for entries
- Using confusing terms and conditions
- Failing to deliver prizes on time
- Not disclosing important prize restrictions (e.g. expiry dates)
Why Legal Advice Matters
Getting advice ensures your trade promotion complies with both state laws and the Consumer Law. This protects your brand and avoids costly penalties.
Conclusion
Trade promotions can boost sales, but only if they’re compliant. A lawyer can help you draft terms and check whether a permit is required.
👉 Contact Gladwin Legal for help setting up compliant trade promotions.
FAQs
Do I need a lawyer to run a promotion?
Yes, to ensure terms and conditions comply with the Australian Consumer Law.
What happens if I don’t get a permit?
You could face fines, cancellation of the promotion, and reputational harm. Fines may apply to your company and you personally.