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  • #987587
    Ryan.R
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    Hi,

    Great to be on here :)

    Im looking for solicitors advise on the below issue, thanks to everyone and anyone for there input.

    Is it legal in Australia to put a product in the market that if you find a “ticket” in a product that is purchased for example a “Chocolate bar” can the ticket be redeemed for Cash?

    This product is to go in petrol stations, supermarkets & department stores.

    The only reason i say this is it may fall under a lottery. and thatt means you have to be 18+ is that correct? is there any lottery that you don’t have to be 18+ to enter?

    and if it is a product like a chocolate bar can they buy the product knowing they have the chance to win cash? Like a promotion but running all the time.

    If you cant is there away around this?

    Thanks all for your advise

    #1163459
    Peter – FS Administrator
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    Hi Ryan,

    Thanks for joining Flying Solo.

    If you’re up for it, it might be worth adding an introductions post with a bit more info about you and your business to help us get to know you.

    It may be tricky to get advice without specifics, but my understanding from being involved in a few promotions in the past is that businesses need a lottery permit for any promotions that involve a ‘game of chance’ (rather than a game of skill) such as what you describe.

    For example the NSW Govt site says:

    “A Trade promotion Lottery permit is required by business to conduct a free-entry trade promotion lottery, where winners are determined by chance, to promote its products or services.”

    Perhaps others will have more specific experience in this field.

    All the best with it
    Peter

    #1163460
    ConnorLJames
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    Hi Ryan,

    You certainly can run a promotion with a ticket within the wrapping of a chocolate bar which can be redeemed for cash. This type of promotion is known as a trade promotion lottery- or instant win trade promotion as the consumer knows that they have won instantly. There is no need to restrict entry to those who are over the age of 18 (unless the prize is not suitable for someone under the age of 18).

    Competition permits would typically be required from NSW, ACT and SA for this type of promotion if the prize pool is under $5,000 and from VIC and WA if the prize pool is over $5k. To apply for a competition permit you will need to develop terms and conditions which set out how someone can enter, the promotional dates, the prizes, their values, any conditions on entry and on taking the prize, how winners will be determined and how winners will be notified.

    In NSW it is a requirement that there be a clause in the terms and conditions noting that printing errors will not invalidate an otherwise valid claim to the prize i.e. if you accidentally print winning tickets in every single bar, everyone who has purchased the bar would need to be awarded the prize- sounds bad? It has happened!!

    Competition permits take some time to obtain i.e. up to a month. There are a range of risks to consider, not only printing errors, but in how you deal with entrants and winners and in makings sure the advertising is clear. There are also a range of other obligations in the competition permits themselves and in each state’s legislation including with regards to unclaimed prizes and how long you need to hold on to the winner’s details.

    Feel free to send me an email if you have any questions on the above- [email protected].

    Check out our website for more info on how to apply for a competition permit.

    Cheers,
    Connor

    Ryan.R, post: 189092 wrote:
    Hi,

    Great to be on here :)

    Im looking for solicitors advise on the below issue, thanks to everyone and anyone for there input.

    Is it legal in Australia to put a product in the market that if you find a “ticket” in a product that is purchased for example a “Chocolate bar” can the ticket be redeemed for Cash?

    This product is to go in petrol stations, supermarkets & department stores.

    The only reason i say this is it may fall under a lottery. and thatt means you have to be 18+ is that correct? is there any lottery that you don’t have to be 18+ to enter?

    and if it is a product like a chocolate bar can they buy the product knowing they have the chance to win cash? Like a promotion but running all the time.

    If you cant is there away around this?

    Thanks all for your advise

Viewing 3 posts - 1 through 3 (of 3 total)
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