Tag Archives: Competition permits

When do you need a competition permit?

Competition permits are usually required for chance-based competitions. As a result of the different regulations in each State, it can be difficult to work out when a permit is required and how a permit may be obtained. The below sets out when a permit is required in each state.

Game of Skill vs Game of Chance

A competition permit will never be required for a game of skill. To be classified as a game of skill, the competition cannot have any element of chance i.e. competition draw involved in the determination of winners. Examples of games of skill include those asking entrants a question with answers then judged on the basis of merit and photo or video submission competitions.

A mixed game of skill/ game of chance would be considered a game of chance.

The below summary relates solely to games of chance.

NSW

A competition permit will be required regardless of your prize pool. NSW are the cheapest and quickest State, so you can set up a competition in NSW with ease, provided that your terms and conditions comply with the various requirements.

NSW require an independent (or approved non-independent) scrutineer of draws over $10k in value.

SA

A competition permit will be required regardless of your prize pool if your competition is instant-win.

Otherwise, i.e. if you are simply drawing your winners, you will only need a competition permit from SA if your prize pool is over $5,000. Allow significant time for SA to issue a competition permit if required.

A particular requirement of note in SA is that you must use approved software if you are drawing your competition winners electronically.

SA require an independent scrutineer of draws over $20k in value.

ACT

ACT changed their laws in November last year. You will now only need an ACT permit if your prize pool is over $3,000. There are some exceptions to the need for permits but if you plan to promote your competition on social media, or in print or TV, these will not apply.

NT

If your prize pool is over $5,000, however a permit is never required if you have a permit from another state. i.e. if you run a national competition and obtain a permit from

WA

All competitions must comply with the permit conditions found on the regulator’s website, but there is no need to apply for a permit here.

TAS and VIC

No need for a competition permit in either VIC or TAS.

QLD

No need for a permit here. As in SA, you use approved software if you are drawing your competition winners electronically.

About us

Our work is covered by PI insurance and we guarantee that we will obtain the permits you required. Unlike other providers we apply for permits online, saving extra permit fees and reducing the time it takes to obtain permits.

Permitz Group has a very straight forward briefing process and can provide you with terms and conditions within 24 hours.

Obtain an obligation fee quote today.

 

Competitions that Stand Out

Be unique

It’s peak time again for marketing in Australia, as brands seek to stand out in the Summer. Consumer competitions are one way to do this. I am involved in hundreds of competitions every year and see some great examples.

Competitions are effective for many types of businesses. Just last week, we worked on competitions conducted by charities, clothing brands and hotels. We also had the pleasure of working on a competition connected to Sir Richard Branson.

Here are four tips for running successful competitions:

1. Many and often- Competitions can give consumers a sense of excitement. Running competitions regularly associates your band with that feeling. For example, running regular competitions on Facebook will encourage consumers to keep checking back in, to see what they can win and to see if they have won. There is a specific type of licence which can be useful for this strategy, called a blanket permit, allowing a business to run as many competitions as they like.

2. Keep entry simple- I am often involved in competitions from start to finish, and as a result, see the number of entries received. There is a direct correlation between the ease of entry and the number of entries received. Whilst this may sound obvious, too many competitions ask you to enter online and then share your entry on Facebook and then purchase a product and then share again. Resist the temptation to overexploit the potential of a competition.

3. Keep it interesting- Prizes and the method of entry need to be designed for your intended audience. Whoever your audience, there will always be a positive response to simple gamification type tricks, like awarding bonus entries (so long as the bonus entries are not too hard to gain.

4. Keep it proportional- Larger cash prizes do not necessarily result in a greater number of entries. Essentially, a competition is a trade between the chance to win (given by you to the consumer) and the disclosure of personal information or the purchase of a product by the consumer. The trade should be a fair trade. Just as important as a prize pool is an entrant’s perception of their chance of winning. There won’t be much of a difference in terms of how many entries you receive if you give away $10k vs $20k. If you are planning to run a massive competition, consider Prize Insurance, which gives entrants you draw the chance to win an amount such as $100k or $1 Million- the cost of such promotions is much lower than you might think.

For competition ideas, info on the requirements or competition permits, send me an email to info @permitzgroup.com or call me on 0406 509 198

Inside tips on how to win competitions

You have probably seen the stories of people literally living off competition winnings. For these people, holidays can be so common they become a way of life.

Permitz sets up hundreds of competitions each year for Promoters and have seen ALL of the tricks and we are now happy to share some of secrets with you.There are some simple rules you can follow to increase your chances of winning.

Target particular promotions

The simplest way to win a competition is to enter one that doesn’t have many entries.

Some competitions get hundreds of thousands of entries, there isn’t much point in targeting those competitions. Public lotteries have ridiculously low odds of winning and cost money to enter. You should never have to pay to enter a trade promotion.

Permitz conducts a large number of competition draws for Promoters so has a good understanding of which competitions attract entries.

One of the most important factors in determining the number of entries a competition is how many people know about it. If you have read about a competition in a public forum, seen it advertised on TV and heard about it on radio, then chances are, you won’t be the only entrant.

There are a few other important factors and by something called multivariate analysis, which is much less fancy than it sounds, we are developing a tool for determining the approximate number of entries a competition will get. This works well with our clients in the design of a competition but could also be a secret weapon (well, until now) for you folk who simply want to win competitions… Want to know more about that? Send us an email to info@permitzgroup.com with the subject line ‘Entry tips.’

Of course, nothing in life is certain, in fact, in competitions there is no direct correlation between these factors and your chance of winning, merely a chance they may improve your chances (mhh.. hows that for a disclaimer).

Greater effort= greater potential reward

Competitions which require you to run through hoops to enter scare entrants away i.e. visit x website, then complete a long survey, then share it with your friend, and then purchase our product and go back to our website.

Our advice for Promoters is always ‘keep it simply.’ Our advice for you, seeking to win a competition, is target those that are complex or require a purchase to enter or seem like they would be too hard for others to enter.

Follow the terms and conditions

The competition terms and conditions are the rules which both you and the Promoter must follow. The competition terms and conditions set out how many times you can enter, how to enter, what the prizes are and so on.

If you think you are being smart by entering using slightly different variations of your name, despite this being in breach of the terms, then think again. If you think that your entry script will guarantee your success in a competition, when the use of such methods is prohibited, then think again. Promoters are well aware of the tricks used by some entrants to win.

By following the competition terms and conditions you can ensure that your entries are not disqualified.

Avoid competitions which are potentially bogus

A reasonably significant risk with any competition is that the prizes on offer will never leave the office of the Promoter (or simply don’t exist). There are very significant fines and other penalties for companies running competitions in this way,  but… how do you know which competitions are potentially bogus?

One easy way is to check the competition terms and conditions to ensure, if the competition is a chance-based competition, that it is approved by the correct competition permits. Competition permits are not needed in all States or for all competitions but if a competition is open nationally and is a chance-based competition, then it would usually have a permit from NSW and the ACT (although there are some exceptions in the ACT).

 

Blanket Competition Permits

A blanket competition permit can be a good alternative to applying for individual competition permits for each promotion you run.  A blanket competition permit can offer significant cost and time savings if your organisation runs a number of competitions each year.

If you are looking at running a number of competitions over 12 months and:

a. Cap the value of each prize at $1,000 or less;

b. Give away less than $100,000 over the life of the blanket;

c. Give away less than $5,000 in each draw; and

d. Are able to keep records of each prize given away, the winners details and the promotion details.

Then a blanket permit may be the answer.

You can obtain a blanket competition permit from New South Wales and the Australian Capital Territory. In NSW you can obtain either a Class B or a Class C blanket (different rules apply to each).

The two main benefits of having a blanket permit are that it can be cheaper to obtain a blanket than to obtain individual competition permits for each competition you run and that, once you have the blanket permit, you can set up a competition very quickly. Once you have a blanket competition permit you are able to use that permit number in each competition you run (provided that the competition complies with the requirements of that permit).

If you are running a number of smaller competitions, want flexibility in the competitions you run and see value in a blanket permit give us a call and we can obtain a permit on your behalf.

Do I need a competition permit?

If you are considering running a chance-based competition there are a number of regulatory requirements that you need to be aware of. In this set of articles we provide a summary of some of the general requirements, assuming you are conducting a national chance-based competition.

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Do you need competition permits?

The first question to consider is whether competition permits are required to conduct a competition. If your proposed competition involves an element of chance when determining winners you then you will need competition permits. Competition permits are required from New South Wales and the ACT for any competition where winners are determined by an element of chance.

Competition permits are also required from Victoria and South Australia for chance-based competitions with a prize pool of over $5000. If you are conducting an instant win promotion you will need a competition permit from South Australia, no matter how much you are giving away.

In Western Australia a trade promotion lottery is a lottery conducted to promote the sale of goods or the use of services for which a cost (i.e. entry fee) cannot be charged to enter, other than the cost of the purchase of goods or services, at their retail- ordinary value. So long as you meet the prescribed conditions associated with a trade promotion lottery then you are not required to apply for a permit to conduct a competition in Western Australia. The Gaming and Wagering commission authorises companies to conduct a trade promotion lottery so long as each of the conditions are met. In a practical sense, Promoters must ensure that a copy of the competition terms and conditions are emailed to the Gaming and Wagering Commission of Western Australia.

The other States and Territories each have their own set of requirements which must be met when conducting a competition but do not require you to obtain a competition permit.

Common examples

The most common example of a chance-based competitions is one where winners are drawn randomly. Winners may be drawn manually, i.e. out of a barrel, or using an approved electronic system. Approval is required from the office of the Liquor and Gambling Commission in South Australia.

Approval is not required from New South Wales but the Promoter must ensure that they obtain two reports, an appraisal report and a draw procedure report. The Appraisal Report must detail whether the computerised system is random in its selection of winners. The Draw Procedure Report must detail the safeguards and controls in place to overcome any possibility of any person manipulating any stage of the draw or the announcement of the prize winners.

The other most common example of a chance- based competition is an instant win or scratch game card promotion. Such competitions will always require a permit from South Australia, New South Wales and the ACT. It is a requirement from New South Wales that terms and conditions for an instant win promotion include a statement that all prizes from the advertise prize pool will be distributed and that all claims prizes will be met notwithstanding the advertised prize pool being exceeded.

In the next article we will review less common promotion types (i.e. First x to register, combined games of skill and chance, and fantasy sports promotions) and the requirements for permits in relation to these promotions.

About us

Permitz Group aims to make the world of trade promotion, competition and lottery permits simply and easy to navigate. Permitz works for some of the world’s largest brands including Sony, Hilton Hotels, Suzuki and BUPA.

Contact details:

Phone: (02) 8324 7406

Email: info@permitzgroup.com

Post: Suite 3.11, 4 Ilya Avenue, Erina NSW 2250

NZ: Suite 6037, 17B Farnham Street
Parnell, Auckland 1052, New Zealand

Read more about what we can do here.


Why businesses give away cash!

Each year hundreds of thousands of dollars in cash and prizes are given away by businesses via competitions. There are a number of reasons why businesses run competitions (also referred to as trade promotions). Competitions, when compared to discounting, can be a more cost effective marketing method in that predetermined prizes are being given away as opposed to a percentage off an undetermined number of sales.

Competitions can increase sales. Entrants in a competition can be required to purchase a product or service to enter. If the competition is structured correctly, the same customers can then lodge multiple entries when they purchase multiple products. Most of the top consumer brands run competitions in this way, promoting the competition on the product and at point of sale.

Competitions can also help businesses build customer databases. When it receives an entry in a competition, a business is provided with useful information about a consumer. In doing so, it is essential that the business comply with the Privacy Act, National Privacy Principles and Spam Act.

The essentials

There are many requirements to consider when establishing a competition. When drafting terms and conditions, a business must fully set out how and when people can enter, what the prizes are, their value, how the winners will be determined and how winners will be notified. Consideration must also be given to how many times people can enter the competition. The primary responsibility of the business is to be fair and abide by the terms and conditions.

Competition permits will usually be required from the state gaming agencies if the winners of a competition are determined on the basis of an element of chance such as a prize draw. Competition permits will not be required if winners are determined by a suitably qualified judge or judges on the skill shown in the entrant’s answer and there is no element of chance involved.

Conclusion

When conducted properly, competitions can be an exciting and cost effective way of increasing sales and further promoting a business’ goods and services. Businesses give away cash and prizes as they receive something in return and consumers love to win prize.

Permitz Group has been set up in the niche of competitions and trade promotions. Permitz Group can help set up your business’ competition and apply for competition permits on your behalf.

Competitions to get Facebook ‘likes’

Facebook competitions are a good way of encouraging customers to ‘like’ your page and interact with your business. If you are going to set up a Facebook competition, make sure you do it properly.

Facebook has Pages Terms (last updated April 3, 2013) that govern any competition/promotion that you run on Facebook. It is imperative that you comply with Facebook’s Terms and the other regulations that apply to competitions. If you fail to do so, Facebook may pull your page down without warning. This in turn can lead to issues with the State Lottery, Fair Trading and/or Consumer Protection agencies.

Will it be worthwhile?

Before you decide to run a competition on Facebook consider whether doing so will be worthwhile. Is your brand or product targeted to those who use Facebook? Facebook is certainly popular, but it may not be an appropriate marketing platform for you. Having said this, with such a large number of dedicated users from all walks of life, you should not discount Facebook as a possible way of attracting new customers. Facebook ‘likes’ do not equate to customers so once you have the likes you will need to continue to work and impress to convert likes to customers.

It is surprising to see how many businesses, that do run Facebook competitions, are unaware of the requirements. Although many will get away with not complying, those that don’t will sure know about it.

Below we set out some of that the requirements you should consider.

So what do the Terms say?

Firstly, it’s important to note that there are many laws that apply to competitions and that Facebook’s Guideline does not give you a complete understanding of those laws. You must also consider consumer protection, privacy and trade promotion laws when designing and running a competition.

Here is a summary of some of the key points in the Guideline:

  • You must use a third-party developed application to administer your competition (either on a Canvas Page or a Page App). There are few applications around that you can use, such as Wildfire.
  • You can’t enter people into your competition simply by them ‘liking’ your page or uploading content onto Facebook or tagging photos. You can have people ‘like’ your page, but then must have them take other steps, i.e. register to enter the competition using the third-party application. If you are running a voting competition you cannot use the ‘like’ function to collect votes.
  • You must acknowledge that your competition is run by you and not by Facebook and include:

“a.    A complete release of Facebook by each entrant or participant.

b.    Acknowledgment that the promotion is in no way sponsored, endorsed or administered by, or associated with, Facebook.

c. Disclosure that the participant is providing information to [disclose recipient(s) of information] and not to Facebook.

d. You mustn’t notify competition winners on Facebook. i.e. when you determine your winners, you can’t notify or announce them over Facebook.”

It is possible that you have seen a competition on Facebook that does not comply with some or all of the requirements listed above. Its important that you do ensure you do comply with Facebook’s Terms and any other regulatory requirements surrounding competitions- i.e. including the requirement to obtain competition permits from some Australian states.

Conclusion

A Facebook competition may be a very worthwhile method of getting people to like your page and interact with your brand. However, remember that there are a number of requirements to consider when running a Facebook competition. If you are going to go ahead with a Facebook competition, make sure that you check the current version of Facebook’s Terms and comply with all other requirements.

Win! Grateful customers

Most of Australia’s largest and best-known brands give away cash and prizes every year via competitions, but there’s nothing to stop soloists getting a piece of the action, too.

Competitions can work very well to promote what it is that businesses large and small sell. Entrants can be required to purchase a product or service. Some applicants lodge multiple entries by purchasing multiple products, which can give your bottom line a boost.

When it receives an entry in a competition, a business is provided with useful information about a consumer. However, it is essential to comply with the Privacy Act, National Privacy Principles and Spam Act in the collection, storage, use and updating of, this information.

Competitions also create a general feeling of excitement and interest in a business brand. As an alternative to discounting, competitions can be a more cost effective option in that predetermined prizes are being won as opposed to losing a percentage off an undetermined number of sales, which cannot be accounted or budgeted for in advance.

How to successfully run a competition and avoid the pitfalls

Compliance with all state based regulations on trade promotions is absolutely essential if you are running a chance-based competition. Compliance with Australian Consumer Law is also essential for all competitions, whether they are chance or skill-based.

For national competitions, where the winners are determined by an element of chance, there are a number of essential requirements. These include:

  • You need terms and conditions clearly setting out how and when people enter, the prizes including their value, the number of winners, and how you will notify the winners;
  • Trade promotion permits will be required from NSW and ACT (unless an exception applies) if your prize total is $5,000 or less;
  • Trade promotion permits will be required from NSW, ACT (unless an exception applies), SA and VIC if your prize total is over $5,000.
  • You cannot begin advertising your competition unless you have received all of the relevant permits.
  • You will need to display minimum (condensed) terms along with permit numbers in all advertising of your competition; and
  • You must collect entries, draw the winners and award the prizes you say you will in your terms and advertising. Records, including entries and winners, must be kept.

If you are going to run a competition, it’s essential to ensure that you comply with the relevant laws.

When conducted properly, the running of competitions can be an exciting and cost effective way to generate increased sales and further promote your company’s goods and services.

Have you run a competition? Was it a success?

Skill and chance based competitions

By Connor James

The differences

A competition that is based on skill does not involve an element of chance in determining the winners. A competition based on skill does not require competition permits.

In any skill based competition judges should be qualified. An example of a skill based competition is one which asks a question for entrants to answer in 25 words or less. A competition that asks entrants to complete the wo_d is not a skill based competition as more than one person will get the correct answer. You can run a skill based competition where winners are determined on the number of votes i.e. in a search for Australia’s next top househusband. If you do run a vote based competition you would need to have a mechanism to determine the winner if two or more people get the same number of votes- i.e. the Promoter will determine the winner based on some element of the entry if there is a tie.

Chance based competitions are usually more difficult to set up but do attract more entries (as they are easier to enter). Competitions where winners are determined instantly, such as with a scratchie game card, or draw are chance based competitions. Chance based competitions require competition permits.

The essentials

There are many requirements to consider when establishing a competition. 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, their value, how the winners will be determined and how you will notify winners. It is important to be clear to avoid confusion and complaints. You then need to ensure that everything you do is consistent with your terms and conditions i.e. your advertising material and the way you accept entries.

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’ and, if your competition is online, use CAPTCHA. 

One of your main responsibilities is to be fair and 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.

Chance based competition requirements

For national competitions, where the winners are determined by an element of chance, there are a number of essential requirements. These include, but are not limited to:

  1. You need terms and conditions clearly setting out how and when people enter, the prizes including their value, the number of winners, and how you will notify the winners;
  2. Trade promotion permits ( competition permits ) will be required from NSW and ACT (unless an exception applies) if your prize total is $5k or less;
  3. Trade promotion permits will be required from NSW, ACT (unless an exception applies), SA and VIC if your prize total is over $5k.
  4. You cannot begin advertising your competition unless you have received all of the relevant permits;
  5. You will need to display minimum (condensed) terms along with permit numbers in all advertising of your competition; and
  6. You must collect entries, draw the winners and award the prizes you say you will in your terms and advertising. Records, including entries and winners, must be kept.

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Conclusion

When conducted properly, competitions can be an exciting and cost effective way of increasing sales and further promoting your company’s goods and services. Permitz Group can help set up your competition and apply for competition permits on your behalf. We work with both skill and chance based competitions.