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.

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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.

Risk management 101- consumer promotions

Other than ensuring that you obtain competition permits to authorise a chance-based competition, you then need to ensure you consider key risks. A failure to manage and mitigate risk in any promotion or consumer interaction can be disastrous.

The terms and conditions you develop for your competition must be adhered to at all times. Terms and conditions mitigate many of the risks associated with competitions by clearly setting out how someone can enter, the prizes on offer and how winners will be contacted. If you follow the terms and conditions to the letter you will avoid many of the common pitfalls. You should ensure that any onerous conditions are clear in your terms and conditions, including any limitations on taking the prize. The prize itself should be described carefully to avoid any future disagreement.

A failure to award the prize on offer may be a breach of the terms and conditions, the competition permit conditions and the Australian Consumer Law. It is very important to be transparent and act in accordance with your obligations.

Once you conduct the draw you should be careful to check that the winner complied with the terms and conditions (ensuring before the draw that only valid entries were included).

When communicating with the winner be careful to confirm their identity and to note limitations with the prize and any information that the winner must give you.

Fake iphone - Copy

Permitz work with chance-based competitions every day so are well placed to assist you in identifying and managing any risks.

Premium SMS competitions- earn revenue from entries

Premium SMS is one way to raise some revenue from your next competition. For each entry that you receive you will get a proportion of the revenue received by the telcos. Revenue can be used to off-set or exceed the cost of the permits and prizes. Revenue could also be donated to a charity of your choice.

Premium SMS is often used in national voting competitions including those on national TV networks. There are specific requirements about how you advertise a Premium SMS competition, which Permitz can help you with. Entry to a premium SMS competition cannot exceed 55 cents.

The success of your competition will depend on a number of factors. Premium SMS can be used as the sole entry mechanic or in combination with others. We can provide you with code to be embedded on your website or Facebook entry page so that all entries are collated in one list. We can then also conduct a competition draw.

Permitz are able to provide you with a low cost Premium SMS number, manage the back- end and send you a cheque for revenue realised from the promotion at the conclusion. Permitz are able to offer one of the most competitive rates available (probably the most competitive) for setting up a Premium SMS competition. If you are interested contact us today using the form below.

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Frequently asked questions about competitions and competition permits

Do I need competition permits?

Competition permits are usually required to conduct chance-based competitions. There can be significant penalties imposed on your organisation by the regulatory bodies if you fail to obtain competition permits when required.

A competition that is based on skill does not involve an element of chance in determining the winners. Chance based competitions are usually more difficult to set up but do attract more entries (as they are easier to enter). An example of a skill based competition is one which asks entrants to submit an answer in 25 words or less. Winners must be selected based on the criteria set out in the competition terms and conditions.

Is it difficult to set up a competition?

Unfortunately, it can be difficult to draft compliant terms and conditions and apply for competition permits in each state. Each state has different requirements under their respective gaming regulations. The reason is obviously to ensure that only legitimate competitions are run and that entry is free and all entrants are given a fair chance of winning.

We set out some of the requirements below. If you are setting up your own competition, we suggest you read the relevant regulations and guidelines produced by the State Gaming agencies. Some of the rules that State Gaming agencies apply are not published anywhere and you may only find out about them when your application for a permit is rejected.

What should I look out for?

If you are drafting your own terms and conditions be careful to fully set out how and when people can enter, what the prizes are and their value, how the winners will be determined and how you will notify the winners. You must ensure that you set out any conditions you want to impose in relation to how to enter, and in relation to the prizes themselves. It is important to be clear to avoid confusion and complaints.

You should be careful to consider how many times you want people to enter your competition. If you only want entrants to enter once, be sure to set this out in your terms and conditions. If you fail to limit the number of entries you may end up with some people entering hundreds or thousands of times! This could, or could not, be what you want. You should consider noting that use of ‘scripting software to enter is prohibited.’

Your main responsibility is to be fair and to abide by your terms and conditions. If you are going to be running a number of competitions over time, you should consider implementing policies and procedures to ensure that your company complies with the applicable regulations. Contact us to assist you in setting this up in compliance with the principles in Australian Standard AS 3806-2006.

What do I need to know when setting up a skill based competition?

While you do not need permits to conduct a skill-based competition you need to ensure that you comply with all other requirements such as those in the Privacy Act.

If your competition is open to NSW residents, you should review the NSW Department of Fair Trading’s site on Special Offers and Competitions. Requirements include that you supply the prizes that you offer and that you disclose special terms and conditions that must be met before someone can claim a prize.

What prize(s) should I give away?

The competition prize being given away will directly influence the number of entries you receive. The type of business or product you are promoting should help you determine which prize to giveaway. Giving away your own products or services as a prize can give you a good source of demographic data and potential future marketing contacts within entrants.

The type of people you want to enter will have a big impact on your choice of prize. Consider the age, gender, income and habits of entrants you want to target. Think about what is popular in that group of potential entrants at the time you are running your competition. Tastes and trends change over time so ensure you keep up to date with the latest.

Cash, Holidays, Electrical appliances are almost always sought after. Our own research has shown that the actual dollar amount of cash given away has less of an impact on the number of entries than anticipated. We have seen little difference in the number of entries received for a $10k prize pool as opposed to a $5k prize pool.

When are permits required for competitions?

You need permits for chance-based competitions where you pick winners at random. Permits are required when your competition is open to residents of NSW, ACT, and SA, VIC and WA (for promotions with a prize pool over $5K). There are substantial penalties for not complying with relevant state legislation.

Have a look at our YouTube clip on Facebook competitions and the different requirements at www.permitzgroup.com.au

Each state has its own requirements. Even states such as QLD that do not require permits have rules that you must comply with in running a trade promotion.

How long will it take to get permits?

Different states take different lengths of time to get permits back to you. At some stages SA and VIC can take three weeks to approve permits. Ultimately it depends on their workload at the time. In SA you can pay a premium fee to have your permit assessed within 5 business days.

It will typically take Permitz Group 2 days at most to draft compliant Conditions of Entry. Once you have reviewed the Conditions of Entry, we will then submit for permits the same day.

How much do the permits cost?

The cost depends on the total prize pool you are giving away. Send an email to info@permitzgroup.com for an obligation free quote.

Do I need competition permits for an unusual promotion?

 

Your competition may be a combination of skill or chance, may involve a prize that cannot be valued, or may determine the winner on the order in which they enter.

The general rule is that you will need competition permits if your promotion involves an element of chance. If your prize cannot be valued, you will still need to work out a value for your competition permit application.

The best advice is to check if you are unsure. You can either call each of the lottery agencies or call us and we will work out if you need competition permits.