To conduct a trade promotion in South Australia with a prize pool of over $5,000, or where prizes are awarded instantly i.e. via a game card, a business must apply for a permit from Consumer and Business Services. The requirement to obtain a permit and to conduct the trade promotion in accordance with the Regulations and the guidelines are important to ensure that consumers are protected and that legitimate competitions are conducted. Similar requirements exist in other Australian States and Territories including NSW, VIC, the ACT and WA.
There are some discrepancies apparent in the requirements for conducting a trade promotion in South Australia which make it more onerous to do so in South Australia than in any other Australian State or territory. These are:
- Requirement: The requirement to publish winners of prizes of over $250 in a newspaper, unless the lottery was advertised in a particular publication or entry was only accepted via a website. In VIC, amendments that came into effect on 16 August 2012 reduced the requirement so that only winners of prizes over $1,000 needed to be published and that those winners could be published online for 28 days (regardless of how people were to enter or where the lottery was advertised.) South Australia is the only state which generally requires publication in a newspaper (unless one of the exceptions apply)
- Requirement: When submitting a permit application, an application fee must be paid. In South Australia, there is a schedule of fees to be paid which are dependent on the prize pool in the trade promotion. South Australia’s permit fees are one of the highest in Australia. To submit an application for the one promotion to Victoria would cost a business $333.80. To apply for the same permit in South Australia with exactly the same trade promotion would cost a business $3,525. i.e. more than 10 times the VIC application fee. If that same business wanted the permit to be assessed within 5 business days (something that a state like NSW would do for no extra cost) they would need to pay a ‘premium fee’ of over $7,000. The costs and timing involved in obtaining an SA permit has led to a number of companies simply excluding South Australian residents all together.
Whilst there are good reasons for having businesses comply with the regulations some regulations do make it difficult to do business. We are asking for minor changes to address the above and will keep you posted.