Do You Need a Permit to Run Your Online Competition?
Launching an online competition is one of the best promotional tactics a company can use to attract new customers and reward loyalty. With proper management and skilful execution, both you and your customers will find it rewarding.
Before you launch your online competition, you need to be aware of the competition laws which govern the different Australian states. You need specific permits based on the type of competition you’re planning. You can apply for the requisite permit via your state’s government agency.
Competitions that ask consumers to purchase goods or services first need to get the approval of local government authorities in the relevant states. Most states will ask you to apply for a permit, which range in cost from $50 to $2,000: often the cost is tied to the size of the prize.
Before applying for a permit you will need to provide some information about the contest, such as:
- The complete terms and conditions of the competition
- Advertising material for the competition
- The start and end dates of the competition. Permits are usually issued for up to 12 months
- Details on what will happen to unclaimed prizes
- Additional information relevant to the prize
- Complete contact details on phone lines: for paid lines there are certain conditions that need to be met
- Details on the type of competition: whether it’s scratch, instant win or break open
- You will need to provide information on how you plan to prevent tampering
- If the draw is computerized you will need to provide compliance details, for example the type of mechanical device that will be used in the draw. These will have to meet specific regulations
- Details on when and how the competition results will be announced, and how the winner will go about collecting their prize
Competitions that are based on the competitor’s skills generally don’t require a permit. If your competition includes a combination of chance and skill, you will need a permit. You will need to provide complete details on the terms and conditions of the competition, its operations and who will be held responsible in the event that it doesn’t go according to plan.