SAM’s Trade Promotion Tips - Uncovering The Secrets of Trade Promotion Compliance

SAM are pleased to share some regulations relating to Australian Trade Promotion compliance that you may not be aware of. In doing so, we hope to save you time and hassles when planning your next sales promotion.

This month, we’re focusing on Promotion Prizes.

Travel Prizes

When promoting a prize, descriptions must be clear, accurate, and not misleading. For example, if a prize is a “holiday package,” you must state what’s included (e.g. economy airfares, 4-star accommodation, airport transfers) as well as what isn’t (e.g. spending money). Avoid broad or vague terms that could confuse entrants. When assessing Trade Permit applications, State and Territory Trade Lottery departments will only approve permit applications that include detailed travel prize descriptions.

Prize Valuation

The total retail value of each prize (and the overall prize pool) must be disclosed in the Terms & Conditions of Entry. Overstating or understating prize value can breach consumer law. Ensure values are based on genuine retail prices available to the public.

Motor Vehicles, Motorbikes, Boats and Personal Watercraft

When motor-powered vehicles such as Motor Vehicles, Motorbikes, Boats and Personal Watercraft are prizes, the A.C.T Government require promoters to submit an independent valuation or a formal Dealer quotation with a Trade Permit application.

Availability & Substitutions

If the advertised prize is unavailable, you cannot substitute it with something of lesser value. Any substitution must be of equal or higher value and clearly stated in your Terms & Conditions.

Delivery of Prizes

Prizes must be delivered to winners within 28 days of the prize draw. Delays or failures to award prizes may result in customer complaints, negative PR and reputational damage. In addition, fines can be issued.

Winner Notification & Publication

Winners must be notified promptly. In some states, details of winners for higher-value prizes must also be published online or in print. Always check local requirements before launch.

Why It Matters

Getting prize compliance wrong can result in penalties, permit issues, or worse - damage to your brand reputation. With SAM Sales & Marketing, you’ll have peace of mind knowing your promotions are fully compliant and consumer-ready.

Thinking about running a prize-based promotion? Let SAM handle the compliance so you can focus on results.

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