Common Errors in Competition Terms and Conditions

When planning a trade promotion or competition, you will need to quickly turn your mind to the competition terms and codnitiosn.

Competition terms and conditions set out the way that your competition will be run. In this article we look at some of the common errors in chance-based competition terms and conditions.

1. Set out the Terms and Conditions

Terms and conditions need to specify the entire entry process. As we have noted previously, to attract more entrants it is important to ensure that the entry process is as simple as possible.

When considering the entry process, break it down into small steps. For example, an entrant may need to go to your website to enter. Break that down into the URL, the entry period, the details that need to be provided, and whether the entrant needs to also agree to the terms and conditions.

Any limitations on who can enter need to be clearly stated. For example, if you are running a competition that is only open to those over the age of 18, you must clearly state this in the terms and conditions.

2. Adqeuately Describe the Prizes

Prizes must be described in detail. You are not able to exclude taxes from prizes, i.e. meaning you are not able state that the winner will be responsible for GST, airport taxes and so on.

When offering a travel prize, ensure that you note whether or not transfers and accommodation are included (including the star rating of the accommodation) and the room type.

3. Address all mandatory requirements

Various States have specific requirements for terms and conditions. For example, in NSW you are required to note that cash prizes will be paid via crossed cheque.

A number of states require that you have an unclaimed prize draw no sooner than 3 months after the original draw if the prize remains unclaimed by that date.

You will need to check each state and territory guideline to ensure that you terms and conditions comply, or you can simply get in touch with us.