TRADE PROMOTIONS

Trade promotions are a great way to promote your business, retain customers and attract new customers

However, if choosing to run a trade promotion, you must be careful. Trade promotion competitions are regulated under various State and Territory legislative regimes and requirements vary between the States and Territories.
This article provides an outline of different types of trade promotions and an overview of the matters that may be required to be attended to by the various States and Territories to run a trade promotion.
Importantly, the requirements vary between the States and Territories. If you have questions or concerns about the requirements for a trade promotion that your business would like to run, please contact Industry Legal Group.

Types of trade promotions
Trade promotions used to promote a business may be based on a game of skill or a game of chance.
A game of skill is where the winner of the trade promotion is selected based purely on skill. A common game of skill is to answer a question in 25 words or less, with the most creative response winning. The winner in a game of skill is determined by a process of judging each entry against a set criteria, importantly, each entry must be considered against the criteria to determine the winner.
A game of chance is where the trade promotion winner is selected by chance, for example by way of a draw. There is no skill involved in a game of chance with the winner determined only by chance or luck.

Will a permit be required to run a trade promotion?
Some States and Territories require the business to obtain a permit to run particular trade promotions. Whether a permit will be required may depend on the type of promotion or game and the prize pool.

Are terms and conditions required?
Terms and conditions are required for trade promotions. Specific items required to be included in the terms and conditions may vary between the States and Territories. There may also be restrictions on the types of prizes that may be offered.

Can a trade promotion be run across several States and Territories?
If a business wishes to run a trade promotion across several States or Territories, or nationally, the requirements of each State or Territory in which the business wishes to run or offer the trade promotion will need to be considered and complied with.
Where trade promotions are run online it is particularly important to be aware that the laws of the States and Territories vary and must be complied with if the trade promotion is offered in that State or Territory.

Other considerations
When promoting and advertising the business’ trade promotion, remember to comply with laws relating to advertising, in particular the Australian Consumer Law.
If the trade promotion is promoted by way of a social media, such as Facebook, the terms and conditions of use for the social medial platform may also have requirements relating to the running or advertising of the trade promotion.

Where can I find information on trade promotion requirements?
When running a trade promotion, it is important to check that your business is complying with State and/or Territory requirements in which the trade promotion is offered. Information relating to the requirements can be found on the website of the government authority responsible for trade promotions in the relevant State or Territory and/or by contacting Industry Legal Group.

Takeaways
The key takeaways are:
• there are requirements to comply with to run a trade promotion;
• the requirements vary between the State and Territories; and
• check the requirements before running a trade promotion by contacting Industry Legal Group and/or the relevant government authority in your State or Territory.

AAAA Member Benefits
Industry Legal Group provides advice to AAAA members on commercial law matters.

If you have any questions relating to the above information, please contact Industry Legal Group on 1300 369 703 or aaaa@industrylegalgroup.com.au

This document is intended for general information purposes only and should not be regarded as legal advice. Please contact Industry Legal Group if you require legal advice.