Giveaways like Macca’s Monopoly* are a popular way for businesses to increase brand awareness and drive sales. People love to win free products and services, and running a competition or giveaway could be the boost you need for your business. However, if you’re looking to run a giveaway like Macca’s Monopoly, it’s important to understand the legal framework surrounding trade promotions to avoid breaking the law. This article explains what your business should consider in running a competition like Macca’s Monopoly to ensure legal compliance.
*Gladwin Legal has no association or affiliation with McDonalds or Macca’s Monopoly.
What is a trade promotion?
Trade promotions come in different forms and are an increasingly popular marketing tool amongst businesses. While Macca’s Monopoly allows you to enter the competition by purchasing participating menu items and scanning your tickets, some trade promotions require you to purchase a membership to enter the competition. A popular example of a membership-based trade promotion is LMCT Plus.
What do you need to run a giveaway like Macca’s Monopoly?
There are different requirements for trade promotions depending on the type of promotion and location of your competition. Each Australian state has a different legal and regulatory framework for trade promotions. If you are looking to run your competition Australia-wide, you will need to comply with the requirements for each state.
Generally, you will need:
- A permit or authority from the relevant Regulator;
- A Competition Terms and Conditions, which set out the rules for participants and limits your legal liability; and
If you are running a membership-based trade promotion like LMCT Plus, you will also need specific Membership Terms and Conditions.
Permits for giveaways like Macca’s Monopoly
You will need to apply to the relevant Regulator for a permit or authority to run your trade promotion depending on the location and the value of the prize pool of your competition. The general rules are set out below:
- New South Wales: You will need an authority if your prize value is $10,000 or over.
- Australian Capital Territory: You will need a permit if your prize value is $3,000 or over.
- South Australia: You will need a permit if your prize value is $5,000 or over.
- Northern Territory: You will need a permit if your prize value is $5,000 or over and you do not already have a permit in another state or territory.
You do not need a permit where your trade promotion is conducted in Tasmania, Victoria, Queensland or Western Australia. However, you will still need to comply with the requirements of the relevant Regulators, such as specific lodgement rules or provisions in your Competition Terms and Conditions.
- Macca’s Monopoly is a type of trade promotion.
- A trade promotion is a competition or giveaway that is conducted to promote the goods or services of a registered business.
- Businesses must comply with the relevant state and territory requirements for running a trade promotion.
- Businesses will need a permit or authority depending on the location and total prize value of their trade promotion.
How can Gladwin Legal help?
Gladwin Legal are experts in trade promotion law and have extensive experiencing in setting up compliant competitions and giveaways. We can help you with:
- Applying for permits and authorities with the relevant Regulators across Australia;
- Drafting a tailored Competition Terms and Conditions for your trade promotion;
- Advising on your trade promotion and other business matters.
This article was written by Ruth Ong.