On 1 July 2020, the New South Wales (NSW) department of Fair Trading updated the trade promotion lottery rules to make it simpler and easier for businesses to run competitions (otherwise known as trade promotions) to promote their products and services.
As part of the changes, NSW Fair Trading introduced an updated structure, with a ‘Trade Promotion Authority’ replacing the old ‘Trade Promotion Lottery Permit’. But what exactly is a trade promotion authority, how does it work, how do you apply for one and what’s the difference between a ‘Trade Promotion Authority’ and a ‘Notification of Gaming Activity’?
Let’s find out.
What is a Trade Promotion Authority?
A trade promotion authority is the new term for the licence or permit from NSW Fair Trading that enables you to run a legal trade promotion (or competition) open to NSW residents.
As per the fair trading website:
“If you’d like to promote your business by running a free-entry competition such as a sweep, giveaway or contest, and the total prize value for the promotion exceeds $10,000, you’ll need a trade promotion gaming authority.”
Unlike the old trade promotion lottery permits, which allowed you to run a single competition per permit, for the dates specified on the permit only, an authority allows you to run multiple promotions or competitions during a 1 year, 3 year or 5 year period.
An example of the old Trade Promotion Lottery Permit next to an example of the new Trade Promotion Authority.
How do Trade Promotion Authorities work?
If you are running a competition, contest or giveaway open to residents of NSW, Australia, you will need to check if you require a Trade Promotion Authority.
If your competition is a free to enter, game of chance that genuinely promotes the goods or services of your business and the total prize value for your competition is over $10,000 AUD you will need to apply for a Trade Promotion Authority.
To be clear, if you are running a game of skill trade promotion, you will not need an authority and if your total prize value for a single trade promotion is under $10,000, you will not need an authority.
If you do need a trade promotion authority to conduct your competition, you will need to apply for one online via the NSW Fair Trading website.
Once you have your Trade Promotion Authority (which is usually immediate), you will need to complete a ‘Notification-Trade Promotion’ form (see below) online each time you run a competition or trade promotion with a total prize value of over $10,000 during the validity of your authority.
WHAT IS A TRADE PROMOTION?
A trade promotion is a gaming activity, commonly known as a competition, contest or giveaway that promotes a business or service. Trade promotions must be free to enter, but can require the purchase of a product or service in order to gain an entry. You will need an ABN (or Australian Business Number) in order to run a trade promotion.
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How do I apply for a Trade Promotion Authority in NSW?
NSW Fair Trading make it easy to apply for a trade promotion authority.
In order to complete your application for an authority to run your competition or trade promotion, you will need just need your contact details and a method of payment.
- Head to https://tponline.onegov.nsw.gov.au/
- Read the instructions and information and check the ‘I’m not a robot’ box and start your application
- Confirm the total value of the prize(s) for your trade promotion and continue
- Select whether you are applying as an individual or an organisation and continue
- Enter your name and contact details and continue
- Select the duration of your authority (1, 3 or 5 years) and continue
- Review the information and click confirm
- Read through the declaration and click to agree to continue
- You will then be shown the applicable fee. When you are ready to pay, click proceed to payment to process your payment.
What’s the difference between a ‘Trade Promotion Authority’ and a ‘Notification of Gaming Activity’?
A Trade Promotion Authority is your authority (or what used to be called a permit and some states refer to as a licence) to run trade promotions or competitions. It’s issued to an individual or organisation and acts as a blanket authority to run multiple trade promotions for the duration of the permit, which is usually one, three or five years.
A Notification of Gaming Activity is a notification of a specific, single trade promotion or competition you plan to run under a valid and current authority. A notification of gaming activity must be completed for each and every trade promotion or competition requiring an authority. Notifications must be completed at least 10 business days before a gaming activity commences.
Head to https://tponline.onegov.nsw.gov.au/ntp-form to submit your notification, you will need your authority number, competition details, company details and a copy of your terms and conditions with you. No further payment is required for a notification of gaming activity.
The changes to permits, licences, authorities and notifications have made it much easier (and more cost effective) to run competitions that are open to residents of NSW, Australia. Prior to the introduction of Trade Promotion Authorities, every game of chance competition open to NSW was required to purchase an $80+ licence, regardless of the prize value. Since the changes, you only need to apply for an authority if your game of chance trade promotion has a total prize value of over $10,000.
If you need a hand applying for your authority or need a set of terms and conditions to complete your application, OrigamiGlobe can help. Check out the T&Cs, rules and licences package, grab yourself a reusable terms and conditions template, or get in touch here.