Trade Promotions: Potential Legal Issues - Checklist for businesses

Trade promotions, also known as competitions, sweepstakes, contests or giveaways, are an increasingly popular way to promote goods and services to consumers. A trade promotion typically falls into one of two categories:

• a game of skill, in which skill is used to determine the winner/s. For example, requiring each entrant to "describe your dream holiday in 25 words or less". The entrant that submits the most creative response wins; or
• a game of chance, in which winners are determined by chance (for example, a draw).

Each promotion must be conducted in accordance with the law in each State and Territory in which it is being conducted, that is, those jurisdictions whose residents can enter the trade promotion.