Are you thinking of running an LMCT giveaway?* Here are four common questions we encounter.
Gladwin Legal has no association or affiliation with LMCT.
1. Do I need to have a charity to run an LMCT giveaway?
No. Having a charity or being affiliated with a charity is not a mandatory requirement to run an LMCT type giveaway. LMCT giveaways are actually a type of trade promotion. A trade promotion requires you to have a legitimate business (for example selling goods or services or memberships) and then giving your customers a FREE ticket to the promotion.
Provided you are not selling any tickets to the giveaway then you do not need an affiliation with a charity. Of course, its always an option to have one if you feel like it would bolster your brand or if you just want to do something nice and give back!
2. Can I do an LMCT giveaway overseas?
Yes you can, but you would need to comply with the laws of the country in which you were making the offers. For example, we work with UK lawyers who have confirmed that our terms and conditions that we drafted for Australian promotions are suitable for UK promotions with only a few minor changes.
3. Is there a limit on the cash prize for an LMCT giveaway?
No. There is no limit of the cash prize for an LMCT giveaway. The value of the prize may change the permit requirements, but it will not be prohibited at law. It’s common for promoters to offer a physical prize or the option of taking a cash payment instead.
4. What do I need to run an LMCT giveaway?
- Legitimate business offering goods or services
- Company to operate the business
- Trade mark to protect your branding
- Website terms and conditions
- Prize supplier agreement
- Discount partner agreement
- Competition terms and conditions
- Membership Terms/Terms and conditions of sale of goods
- Permits (depending on your promotion)
This article was written by Rosalyn Gladwin.