Skip to main content

Trade Promotion Eligibility Requirements

By Sharmila Pamamull, Senior Counsel

30 July 2020

Trade Promotion Eligibility Requirements

It is important to outline in your competition terms and conditions who entry is open to. This is to avoid issues of people entering who you didn’t intend to enter and to make it clear to potential entrants whether or not they are entitled to enter. If you don’t make competition eligibility clear you could find yourself awarding a prize to a person to an unintended recipient; or you may receive queries from the public with questions on competition eligibility which could have been avoided.

The typical considerations for considering who can enter your competition are outlined below:

Location of residence

Typically, you will outline whether the entrant for your competition must be an Australian or New Zealand resident or resident of any specific State/Territory. You may also want to require the entrant to be a permanent resident or only a person with a VISA.

If you are conducting a game of chance promotion, the place of residence of an entrant may also impact where you will need to obtain permits. E.g. if you are opening entry to QLD residents only, no promotion permit will be required. If you open to NSW residents, a NSW permit is required.

It is important to outline the winner’s place of residence, as if the winner is located in an area unintended or overseas, you may need to organise delivery of the prize to that location which could be expensive. If a travel prize, this could also be a financial concern in terms of providing flights from their place of residence to the prize destination.

Most Common: Australian residents

Age Restrictions

For any trade promotion, age restrictions are always a consideration.

Individual or Business Entrant

You need to consider whether the entity who enters is an individual or a business (or both). In some instances, it will be necessary to specify who on behalf of a business can enter (e.g. an authorised representative of the business, owner or manager, etc) and include any age/residency requirements for that individual.

For a business, you need to also consider whether they have to be a certain type of business e.g. a business with an account with the promoter or who purchases XXX products from the promoter.

No overdue monies owing

If a competition entrant is a customer of the promoter, you may not want to award the prize to them if they have outstanding debts owed at the time the prize is awarded. In such a case, we would recommend including the following clause (or similar): The entrant must be within the Promoter’s trading terms throughout the promotional period and must not have overdue monies owing to be eligible to win a prize.

Employee entrants

If you are opening entry to employees of the promoter or a particular business, you must be quite specific as to which employees may enter the competition. If this is a big company, and entry is restrictions to members of one particular office or department or only a certain type of employee (e.g. sales staff), this needs to be included in your terms.

Where you award a prize, fringe benefit tax may be required to be paid by the winner’s employer. Therefore if you are asking employees of a third party company to enter, ensure you first obtain permission from the third party company owner and flag to them they may be liable for fringe benefit tax (or let them know you will cover this tax, if it applies).

Other eligibility requirements for competitions in Australia

If the entrant must comply with certain other criteria, you should ensure this is clearly specified in the terms and conditions. E.g. if they must be a member of an organisation/website/Facebook page. If this is simply a requirement of entry, and not a pre-requisite as an entrant, this should be referenced in the how to enter instructions instead.

Run your trade promotion with Promotion Wizard

Back to Insights.

Digital Transformation

A General Counsel's guide to modernising their legal function.

Digi transform ebook

Increase productivity, reduce workloads and simplify your legal processes on a platform built for in-house teams.

Want to speak to someone instead?

Call us on +61 (3) 9908 3784

Your Ebook is on its way to your inbox!

You can also download via the link below:

Download now

Thanks for reaching out.

One of our consultants will be in touch shortly.