Christmas promotions

There is still time to set up a competition for your customers to coincide with Christmas!

Permitz suggests you consider submitting a request for terms and conditions and competition permits this week or early next week if you want to run a competition near Christmas.

Christmas competitions, competition permits

Competitions can be a very effective way of increasing sales, building a customer database or launching a new product or service. To run a chance-based competition you would require competition permits from at least NSW and the ACT. Competition permits can take some time to be issued, so get in touch now.

Common issues in terms and conditions leading to a knock back

When terms and conditions are submitted for a competition the lottery departments issuing competition permits will review the terms to ensure that they are consistent with the relevant guidelines.

Here is a list of the most common errors in terms and conditions leading to a knock back (request that the Promoter change the terms before permits are issued):

1. Not including compulsory costs in the prize. The general rule is that a winner cannot be required to incur a cost to take a prize. For example, you would not be able to offer a winner a travel prize but at the same time exclude taxes from the prize. Similarly you could not offer a boat or car, that requires registration/ transfer costs, and ask the winner to pay for those.

2. Running the promotion for over 12 months. A competition can run for a maximum period of 12 months.

3. Not completely setting out how someone enters and what the prizes are. The terms and conditions need to go into detail on how someone enters i.e. saying someone enters online without saying where would not result in competition permits being issued. A full description of the prize must also be included. i.e. if you are giving away a trip which includes accommodation you would need to set out the hotel type, room type, number of nights, location of the hotel and value.

If you have any questions on the process of obtaining competition permits, give us a call.

‘Get your hangovers ready and livers prepared’ deemed not to be an appropriate competition

In not particularly surprising news the Office of Liquor Gaming and Racing in NSW  (OLGR) have been focusing on trade promotions which encourage the excessive consumption of alcohol.

The OLGR’s recently released newsletter noted the OLGR targeted 66 irresponsible alcohol promotions in 2013/14. One such promotion had the name ”Get your hangovers ready and livers prepared.”

OLGR Executive Director Paul Newson said OLGR will continue to target irresponsible promotions that risk encouraging misuse or abuse of alcohol or are out of step with community expectations.

The OLGR’s recent newsletter notes “Venues caught conducting irresponsible promotions will face increased inspections as well as bans or restrictions on their activities, with potential fines of $5,500 for failing to comply, and strikes under the Three Strikes disciplinary scheme.”

If you would like assistance in ensuring that your competition is compliant with the Liquor Promotion Guidelines and has the competition permits it requires, get it touch.

 

It will soon get (slightly) easier to run a giveaway

Changes will shortly come into effect which will make it easier for businesses to run chance-based competitions in Victoria.

Competitions are extremely common in Australia. They are used by businesses to attract customers, increase sales and to increase customer/ potential customer databases. Competitions, which give away prizes, are heavily regulated in Australia.

Trade Promotion Permits

A ‘trade promotion’ (aka competition) permit is required from a number of Australian states and territories to conduct a national chance-based competition. A chance-based competition is one which involves an ‘element of chance’ in the determination of winners. Common examples include those that involve draws or award prizes instantly.

A competition which does not involve chance may require entrants to answer a question in writing or submit an answer in another form. That answer would then be judged by a qualified judge or judges. To remove any element of chance there would need to be enough ‘scope’ in the question for unique responses; to determine the winner/s.  A question such as “what is the largest ocean on Earth?” would not form the basis of a skill-based competition as a number of entrants would submit the correct answer.

Trade promotion permits must be obtained, for chance-based competitions:

  1. From NSW, regardless of the total prize pool value (i.e. combined value of all prizes);
  2. From the ACT, regardless of the total prize pool value (unless an exception applies);
  3. From SA, if the prize pool value is over $5k or the competition is an ‘instant win’ competition;
  4. From VIC, if the prize pool value is over $5k; and
  5. From the NT, if the prize pool value is over $5k and if a trade promotion permit has not already been obtained from another State/ Territory for the same competition.

In WA a permit is automatically given so long as the competition meets certain conditions. Other States have guidelines or requirements which must be met.

There are a range of further requirements which apply to competitions, regulating how the competition must be advertised and managed.

The diversity and complexity of regulation makes it difficult to run competitions. There are now specialist companies, such as Permitz Group, who can assist in the design and conduct of competitions.

www.permitzgroup.com.au

Gambling and Liquor Legislation Further Amendment Bill 2014 (Victoria)

There are some changes coming which will make it easier to run a national chance-based competition.

The Gambling and Liquor Legislation Further Amendment Bill 2014 (Victoria) passed the second house (the Victorian Legislative Council) on Tuesday 2nd September. The bill  will come into effect following Royal Assent & proclamation.

The Victorian treasurer, The Hon. Michael O’Brien, MP, noted in the first reading speech:

The bill will remove the requirement to obtain a permit for all trade promotion lotteries, resulting in a significant saving for both small and large businesses.
It is important to note that existing conditions that protect consumers, including limitations on entry prices, restrictions on trade promotion lotteries and gaming machine play and standard terms and conditions for trade promotion lotteries will continue to apply. Businesses conducting trade promotion lotteries must also still comply with Australian Consumer Law.

Whilst the complex maze of trade promotion requirements will largely remain, the removal of the need for a permit from Victoria will save businesses wishing to run a national chance-based competition some time and money.

Facebook to pull down the ‘like-gate’

From 5 November 2014, all current ‘like-gates’ will be pulled down. Facebook has announced the changes in an attempt to ‘improve’ the quality of Facebook page fans. This will have an impact on brandHeavens Open Ornate Gatess using a like-gate to ensure that fans like a page to enter a competition.

What is changing?

Facebook previously allowed you to ‘force’ someone to like your Facebook Page to
enter a competition or to access another incentive, such as downloadable content via a ‘like-gate.’

Here is an explanation of the change from Facebook’s developers post:

You must not incentivize people to use social plugins or to like a Page. This includes offering rewards, or gating apps or app content based on whether or not a person has liked a Page. It remains acceptable to incentivize people to login to your app, checkin at a place or enter a promotion on your app’s Page. To ensure quality connections and help businesses reach the people who matter to them, we want people to like Pages because they want to connect and hear from the business, not because of artificial incentives. We believe this update will benefit people and advertisers alike..

When are fans really fans?

Facebook’s concern is that like-gating encourages individuals to like a page where they are really only interesting in entering a competition.

The cynical view might be that ‘like-gating’ redirects attention away from Facebook advertising. One could also argue that it is up to brands themselves to determine which strategy results in better quality fans and that Facebook should concentrate on ensuring those fans are reached.

In any event, Facebook’s practice of continually changing weighting of company posts in individual’s feeds makes life difficult for page admins- with or without fans.

How will the change impact competitions?

Well the obvious implication is that you will not be able to use ‘like-gating’ any more. The unanswered question is whether Facebook will next prohibit (in its Promotional Guidelines) brands from requiring a ‘like’ to enter a competition under the individual competition terms and conditions (i.e. without the ‘like-gate’ in place but with a requirement under the competition rules).

Conclusion

Facebook’s changes are important for brands currently or intending on using the ‘like- gate’ feature. Overall, if the change does improve the quality of fans for brands then that is a good thing.

The truth is we can expect to continue to see changes, some positive and others negative, from Facebook.

Not long until Father’s Day- make it a big one for your brand with a promotion

There is still time to prepare a trade promotion in time for Father’s Day. With Australian’s spending in excess of $650 million on Father’s Day, the main winners typically being restaurants, retailers & gift card providers.

Chance-based competitions can be an effective way of giving consumers a chance to win fantastic prizes for their dads/ husbands. Competition permits will be required if you are giving prizes away on the basis of chance. If you require competition permits, need assistance with prize sourcing or ideas for a promotion- get in touch.

Do I really need competition permits?

From time to time we are asked what the consequences would be if a client ran a chance-based competition without a competition permit.

Wanting to unneccesary avoid red tape

Understandably people don’t like red tape and don’t want to wait for a trade promotion permit to be issued. Unfortunately, like many things in life you can’t avoid the requirement to obtain competition permits if you need them.

So when and where do you need a competition permit

The two main categories of competitions are those based on skill and those based on chance. Competitions can involve both elements of skill and chance.

Competition permits are required in the following states for chance-based competitions (or competitions with elements of chance and skill):

ACT: You will need a competition permit from the ACT no matter what the prize pool is -if the competition is a game of chance. Note that there are some exceptions from requirement to hold a competition permit in the ACT, Give us a call to find out.

NSW: Again, no matter what the prize pool is if the competition is a game of  chance. NSW issue permits very quickly and are inexpensive.If your prize pool (total given away under the competition) is over $5,000 then you will need a competition permit from VIC. VIC: If your prize pool (total given away under the competition) is over $5,000 then you will need a competition permit from VIC. The cost of a permit in VIC is not tied to the value of all prizes unlike in other states.You will need a National Police Certificate to obtain a permit from VIC

SA: If your prize pool (total given away under the competition) is over $5,000 or involves instant- win then you will need a competition permit from SA

WA: Under the WA regulations you are automatically issued a competition permit so long as you comply with the permit conditions. You will need to email a copy of the competition terms and conditions to the regulator and may need approval if you subsequently amend the competition terms and conditions.

NT: You will only need a competition permit from the NT if you don’t have a permit for that same competition from another state.

Elsewhere: You will not need a competition permit from any other Australian state or territory. States such as Queensland have guidelines which you will need to comply with- they are classified as Type 4 promotions.

Should I both obtaining a competition permit?

With so many sets of regulations to consider it is no wonder that many want to avoid the need for competition permits altogether. Unfortunately, if you fail to obtain competition permits when they are required you risk regulatory investigations/ prosecution and penalties- in short you will be breaching your legal obligation. Although the likelihood of getting caught may be low, the consequences could be very substantial.

Trade promotion permit costs

Whether you are looking at running a simple online or facebook competition, or something a little more complex, perhaps involving Premium SMS or voting- Permitz can help. Permitz have translated complexity, found in the trade promotion permit conditions and state guidelines, into a simple and easy to follow process.

Competition permits are required for chance-based competitions that are run nationally. Each state has a different set of requirements, that makes it difficult to ensure you comply. There is a push by a number of business groups, including the NSW Business Chamber, to reduce the regulatory burden. We can assist businesses right now by translating the complex requirements into simple to follow instructions. We can take care of the competition permit application process and obtain competition permits quickly and without hassle.

We have developed nationally compliant terms and conditions, that have been reviewed by a number of leading law firms and in-house legal teams as well as the trade promotion permit lottery departments.

A risk when apply for trade promotion permits is the need to lodge amendments to make changes to terms and conditions already approved by other states. If an amendment is required as a result of an oversight on our behalf, we pay the fee and don’t charge you extra. This ensures we get it right, the first time!

If you are looking for a quick and obligation free quote, including permit costs, complete our quote form. There is no obligation to proceed to use our services, so if you are just after the costs, complete our quote form for a quote to be delivered instantly to your email inbox.

We offer Premium SMS set up and revenue share that you simply won’t find elsewhere.

Businessman Holding A Mobile Phone And Coffee

Steps involved in competition marketing

There are a number of steps involved in setting up and running a trade promotion.

From concept development to winner notification, it is important to ensure you consider the various regulatory requirements.

Trade promotion permit applications involve the preparation of the applications and then chasing and liaising with each state regulator. It is the chasing and liaising that takes the longest period of time.

Permitz can assist in all aspects of trade promotion management from initial design to trade promotion permit lodgement and ensuring that permits are obtained as quickly as possibly by speaking to each state regulator on your behalf.

Permitz will lodge trade promotion permits but then ensure all permit applications were received, following up on any questions asked by the state lottery departments. We ensure we maintain a professional working relationship with each state trade promotion regulator who issues permits.

Permitz can manage all time consuming aspects of trade promotions on your behalf. Allowing you to focus on the actual execution of the campaign and on other work which demands your attention.

We have a National Police Certificate and can conduct an electronic draw on your behalf.

Each of the aspects set out in the chart below are aspects you can send to Permitz.

Competition elements

Limits on number of entries

When planning a chance-based competition it is important to consider how many times you want to allow one individual to enter.

If you do not require a purchase to enter and fail to place a limit of the number of entries per person, you may end up with one individual entering hundreds or thousands of times! This could be seen to be unfair to other entrants. If your competition terms and conditions fail to note any limitation there is nothing to stop one person from entering your competition multiple times. The terms and conditions that you submit to obtain a competition permit must consider and be clear about these requirements.

Multiple entries can be a pain! Consider any restrictions when planning your next promotion.

Multiple entries can be a pain! Consider any restrictions when planning your next promotion.

Other strategies you may wish to consider are requirement to verify entry via email, systems in place to stop multiple entries from the one email or one IP address. Contact us for other ways to limit this risk.