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A trade promotion is a free entry competition, to promote goods and services, conducted by a registered business. Trade promotions require full competition Terms and Conditions, to set out the details of the promotion, protect the Promoter, and to comply with State and Territory regulatory requirements. Competition Terms and Conditions in effect create a contract between the Promoter and the consumer. Therefore, non-compliance with the competitions will amount to a breach of contract.
Trade promotion competitions are regulated by state and territory legislation, and therefore the contents of competition Terms and Conditions in will depend on where the Promotion is being conducted. If the Promotion is being conducted nationally, or in several jurisdictions, the Terms and Conditions must be drafted in accordance with the most restrictive requirements.
It is therefore important that the Terms and Conditions accurately reflect your Trade Promotion and comply with the relevant State and Territory requirements. Notably, some states and territories require competition permits or authorities, and the Terms and Conditions must be submitted with the necessary applications.
For national Trade Promotions, the following will generally need to be included in the Terms and Conditions:
· the Promoter’s details, including ABN;
· the promotion period;
· closing date and time for entries;
· draw date(s) and the draw method;
· full prize particulars, including the value of the prize;
· the method of claiming the prize;
· notification and publication particulars;
· a privacy clause, in accordance with the Australian Privacy Principles; and
· any other relevant factors.
The contents of most clauses will depend on the states and territories requirements and time frames, which must be adhered to when drafting competition Terms and Conditions. For example, the following requirements apply for notifying winners:
· VIC- in writing (e.g., e-mail, mail, fax, SMS);
· ACT- within 21 days of the prize draw, in writing (e.g., e-mail, mail, fax, SMS; and
· SA- within 14 days of the prize draw, in writing (e.g., e-mail, mail, fax, SMS)
Including all the different requirements would substantially lengthen and complicate the competition Terms and Conditions, and therefore, for a national promotion, the competition terms should include the most stringent requirement to ensure compliance in all states and territories. So, looking at the example above, the competition terms and conditions would include notification of winners in writing within 14 days of the prize draw.
In summary, competition Terms and Conditions are vital to the success of your trade promotion, to protect your interests, and to comply with state and territory regulatory requirements.
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