If you’re running a business, having a competition can be a great way to promote your brand. Often, these are called “trade promotions”.
To hold a competition, however, you’ll need to be aware of several legal requirements. For example, you may need a permit to operate some competitions, and these rules vary across the states in Australia.
And you’ll also need Competition Terms & Conditions that set out the terms by which consumers will participate in your competition.
But what are Competition Terms & Conditions and why do you need them? Here’s what you need to know.
What Are Competition Terms & Conditions?
Competition Terms & Conditions are an important contract between your business and those who are entering into a competition you have created.
It sets out important matters you’ll need to address to be compliant with Australian Consumer Law when holding a competition — such as who can enter, how they can enter, when the competition will occur, how long it will take, prize requirements and much more.
Why Do I Need Competition Terms & Conditions?
Competition Terms & Conditions are required by Australian Consumer Law and some state regulations in order to run a competition.
Depending on if the competition is based on skill or chance, you will need Competition Terms & Conditions as well as any applicable state permits
Competition Terms & Conditions are important because they:
- State who can enter. It is important to make it clear if there are any requirements for entry in your competition. For example, you may wish to limit entries to people who are over the age of 18 and live in Queensland.
- Explain who is eligible. Ensuring that people know how they can be eligible to win is a key part of Competition Terms & Conditions. When holding a competition, you may be legally required to clarify how people can enter and win it. Having a set of Competition Terms & Conditions is the best way to ensure you have a legal document to fall back on if this does come into dispute.
- Set out exactly what the prize is. An important element of a competition is that entrants must be absolutely clear what the prize is and what is included within it. For example, if the prize is a ticket to a concert, you must clarify that it is only the concert ticket itself and does not include factors such as airfares or accommodation.
What Is Included In Competition Terms & Conditions?
Competition Terms & Conditions typically include clauses dealing with:
- Eligibility criteria of the participants
- Competition duration
- How the prize can be claimed
- What happens if the winner is unable to claim their prize
A good lawyer will be able to draft your Competition Terms & Conditions to ensure that your competition is compliant with Australian Consumer Law, and that the terms of the competition are clear to your customers.
At Sprintlaw, we focus on drafting comprehensive, easy to understand and user-friendly agreements for businesses.
Feel free to get in touch with us to get things started with your Competition Terms & Conditions! Our friendly team can be reached at [email protected].
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