Votes, shares, and referrals- do I need a competition permit?

We are often asked if competition permits are required for a competition where the winners determined on the basis of the number of votes, shares or referrals.

Such competitions can be an effective way of spreading a message or growing a customer database in a viral manner. Commonly such a competition would require the original entrant to submit an entry which others then vote on or require the entrant to refer friends and colleagues. The winner would be the individual with the most number of likes, shares or votes.

When conducting a referral based competition it is important to ensure you are compliant with the Privacy Act and Spam Act. It is not okay to send third-parties marketing material when they have not consented to the receipt of such material.

When conducting a vote based competition it is important to ensure you consider means to limit the risk of individuals buying votes or submitting multiple votes in breach of the terms and conditions. Permtiz can assist you in understanding your options to limit this risk.

Such a competition may involve an element of chance which would result in a need for competition permits. An element of chance may be introduced if a draw is involved or if a limited number (determined at random) can participate.

Chance can be avoided if the winners are determined on the most number of likes, shares or votes and there is a tie-break mechanism that requires and is judged on the basis of skill. For example, if two or more entrants receive the same number of votes, to determine the ultimate winner the Promoter could ask the tied winners to submit an answer to a question and then judge the winner on the basis of their answer.