Trade Promotions & Lotteries – the Laws
At Sharon Givoni Consulting we believe in proactive law which is based on the philosophy that legal knowledge is at its best when applied before things go wrong.
In Australia, trade promotions and lotteries are regulated by the Australian Consumer Law (ACL) and the State and Territory legislation.
“You could buy 100 lottery tickets and not win, or you could buy 1 and get it” – Luis Gonzalez
What is a Trade Promotion?
A trade promotion is a promotion that is run by a business to promote its goods or services. Examples of trade promotions include competitions, sweepstakes, and discounts.
What is a Lottery?
A lottery is a form of gambling where participants buy tickets or tokens in the hope of winning a prize. Lotteries can be run by the government or by private organisations, and include raffles, bingo, and charity lotteries.
What does the Law say?
The ACL and state and territory legislation provide specific rules around the conduct of trade promotions and lotteries, including requirements for disclosing terms and conditions, notifying winners, and ensuring that promotions are conducted fairly and honestly.
The laws do vary from State to State, with each state and Territory having its own legislation that regulates the conduct of trade promotions and lotteries.
For example, in Victoria, the Victorian Commission for Gambling and Liquor Regulation (VCGLR) is responsible for regulating lotteries, while in New South Wales, the Office of Liquor, Gaming, and Racing (OLGR) is responsible for regulating lotteries.
What happens if the laws are not followed?
If a business runs a promotion illegally, the consequences can vary depending on the specific laws that have been breached. Penalties can include fines, legal action, damage to the business’s reputation, and even criminal charges. In some cases, the business may also be required to refund any money paid by participants or to provide alternative prizes. It’s important to check with the laws in each state or territory you wish to run your promotions or lotteries in and to get legal advice before proceeding.
In summary, trade promotions and lotteries are regulated by the Australian Consumer Law (ACL) and the state and territory legislation. Businesses must comply with these laws to ensure that the promotions are conducted fairly, honestly and transparently, and that the prizes are awarded to the winners. Penalties can include fines, legal action, and damage to the business’s reputation if a business runs a promotion illegally.
Please note the above article is general in nature and does not constitute legal advice.
This article was written by Sharon Givoni, Principal Solicitor at the law firm Sharon Givoni Consulting (https://www.sharongivoni.com.au/). We do a lot of work in the area of interior design and understand the industry.
Please email us email@example.com if you need legal advice about your brand or another legal matter in this area generally.