Social media platforms are the playgrounds where businesses are actively connecting with their loyal customers and attracting new ones in a flash. So, what are the Australian laws around running an online promotion or giveaway? At Sanicki, we understand how important it is to seamlessly integrate marketing with legal compliance. Our Trade Promotion services provide the perfect balance, ensuring your promotions are both captivating and legally sound. Trade promotions go beyond marketing—they’re key to enhancing your brand’s visibility and connecting with your audience. From offering giveaways and creating interactive games to skill-testing contests, we’re here to help you craft promotions that are exciting and engaging for your audience.
Different Types of Trade Promotions:
- Game of Chance: A game of luck! These games randomly assign winners, adding an element of excitement to your promotions without the need for skill. From lottery-style tickets to simple social media shares, we’ll help you implement games that keep participants eagerly awaiting a chance to win.
- Game of Skill: Put your audience’s skills to the test! These promotions rely on skills and expertise. Whether it is a quiz, creative challenge, or skill-based competition, this promotion highlights the best of your audience’s capabilities.
- Gift with Purchase: These promotions provide a purchaser with a gift upon acquisition of a product. This could be a free pair of socks with a purchase of shoes, or a free case alongside the purchase of a technological product.
Why do I need a lawyer for this?
It is pivotal to remain well-informed regarding regulations, as a failure to comply with regulations can lead to severe consequences, including hefty financial sanctions and significant damage to your business’ reputation. Our lawyers will help you navigate the legal framework, ensuring your promotions remain fully compliant with all relevant laws and regulations, allowing your business to thrive and helping you avoid potential penalties or fines.
A Game of Chance Gone Wrong – Adrian Portelli
Failing to meet regulations can land you in similar troubled waters to Adrian Portelli. In 2022, Mr Portelli made headlines on the TV series The Block, and since then, he’s built a fortune running promotions and giveaways through his business Xclusive Tech Pty Ltd, operating under the brand Licensed Motor Car Trader (LMCT+) across Australia. The business offers a tiered subscription model that provides shopping discounts and entries into extravagant prize draws, as well as one-off packages available for individual purchase. This strategy, based on offering prizes through an element of chance, falls under the category of a “trade promotion lottery”—a type of game of chance.
However, trade promotion lotteries come with a unique set of rules depending on the State or Territory, and they require proper permits and terms and conditions. Regulators are always on the lookout for compliance issues, and LMCT+ recently found itself under investigation. The South Australian Consumer and Business Services Agency (CBS) is examining LMCT+ for allegedly running unlawful lotteries. The charges stem from activities between 29 January 2023 and 16 May 2024, when the lottery was open to South Australian residents without the proper licenses. The Lotteries Act 2019 sets out to regulate this type of conduct in South Australia (SA) and the CBS court documents assert that LMCT+ was not compliant with this legislation.
Mr Portelli faces nine charges for conducting or assisting in an unlawful lottery, and his company has been charged with ten counts of the same offence. On 15 January 2025, Mr Portelli will appear in the Adelaide Magistrates Court. If he is found to be guilty of these charges, he could face a fine of up to $5,000 for every lottery ticket sold to South Australian residents. It’s a reminder that running promotions and giveaways is exciting—but it pays to play by the rules!
How will Trade Promotions benefit my business?
Whilst navigating the technicalities and regularities may seem daunting, the benefits of trade promotions have the potential to outweigh the tediousness of the procedure. By engaging your audience and fostering customer involvement, you can boost sales, increase revenue, and enhance brand awareness. The domino effect of trade promotions can increase brand awareness through word of mouth, as participants exclaim their positive experiences to friends and family. Additionally, these positive experiences may help in developing brand loyalty, which is utterly invaluable to sales growth and business image. And who doesn’t love a free game?
With our guidance, you can transform trade promotions into a dynamic tool that drives business growth and strengthen your brand’s reputation. Ready to elevate your marketing strategy? Partner with Sanicki Lawyers for unparalleled expertise in trade promotions that captivate your audience, ensure compliance, and deliver impactful results. Let’s take your business to new heights!