Tag Archives: online competitions

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?