When do you need a Trade Promotion Permit?

We are back in 2019, already working on some exciting promotions.

One of the questions we are often asked is when trade promotion permits are needed?

Have a bright idea for a competition? Do you need a trade promotion permit?

The first consideration is whether you are planning to run a competition based on skill or chance. A competition based on skill involves no element of chance in the determination of winners. For example, if you run a promotion where entrants submit an answer to a question in 25 words or less and you judge the winner (being qualified to do so), then you are running a competition based on skill.

A competition based on skill does not require a trade promotion permit. Click To Tweet

Now oftentimes chance based promotions are preferred as they are easier to enter and result in more entries. You can have whichever entry criteria you wish. For example, you might wish to have entrants buy your product or service to enter. A competition based on chance may required competition permits.

The next consideration is whether your competition will be open nationally or in specific states. The states that require competition permits are the Australian Capital Territory, South Australia, and New South Wales. New South Wales is planning to remove the need for competition permits any day now- we will keep you updated. Currently, a competition permit is required from New South Wales regardless of the following final two factors.

The final two factors are whether you are running an instant- win promotion, if you are you will always need a permit from South Australia, and what your total prize pool is. If your total prize pool is over $3,000 in the Australian Capital Territory or $5,000 in South Australia, then you will need a permit from each respective state (or territory and state!).

If you have any questions please feel free to get in touch- info@permitzgroup.com and we will respond immediately!