Running a competition? Strict rules apply
Often, businesses conduct competitions and give away prizes as a way of attracting new customers and rewarding existing ones. Most competitions are run as random lotteries that promote the goods or services supplied by a business, and offer a chance to win a prize.
These types of competitions are known legally as Trade Promotion Lotteries. Certain laws apply and a permit is required from the NSW Department of Gaming and Racing.
In order to obtain a permit you must complete an application form, provide a copy of any advertisements promoting the competition, information about the prize or prizes, the proposed start and finish dates of the competition, and full disclosure of all terms and conditions or rules of the competition.
Finally, you need to keep complete records of the competition and your records may be inspected by authorised representatives from the Department of Gaming and Racing.
So if you are going to run a competition to promote your business, you need to obtain a permit and be aware of how to stay compliant. The department does impose severe penalties if there are any infringements of the rules!
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