Competition Terms And Conditions Template: What To Include In Australia

Running a competition can be a great way to build brand awareness, grow your email list, and reward your customers (or potential customers). But as soon as you post “Win!” on social media or your website, you’re stepping into a space where unclear rules can quickly turn into customer complaints, platform takedowns, and legal risk.

That’s why having solid competition terms and conditions (and a reusable template you can adapt each time) matters. It’s not just admin - it’s the rulebook that tells entrants (and you) what’s actually going on, who can enter, how the winner is chosen, and what happens if something goes wrong.

Below, we’ll walk you through what Australian businesses should include in competition terms and conditions, common pitfalls, and how to set your competition up so it’s clear, compliant, and protects your business.

What Is A Competition Terms And Conditions Template (And Why Do You Need One)?

A competition terms and conditions template is a structured set of rules you can adapt for each giveaway, contest, trade promotion, or “win” campaign you run.

In plain English, it’s the document (or webpage) that answers the questions entrants will ask - and the questions a regulator, platform, or customer might ask later if there’s a dispute.

A good template helps you:

• Reduce legal risk by setting clear rules and avoiding misleading conduct
• Lower operational risk by preventing misunderstandings (especially around how to enter, dates, and winner selection)
• Protect your brand by showing you run promotions fairly and transparently
• Comply with platform requirements (for example, if you run the competition on social media)

Even if you’re only giving away a small prize, it’s worth having proper terms in place. Most issues come from ambiguity, not prize value.

Before You Use A Template: What Type Of Competition Are You Running?

Not every “competition” is treated the same way under Australian rules.

Before you copy-and-paste any competition terms and conditions template, it helps to get clear on what you’re actually running, because different legal and compliance issues can apply.

Game Of Skill vs Game Of Chance

Broadly, promotions often fall into one of these buckets:

• Game of skill: winners are judged on skill (for example, best photo, best slogan, best answer). The selection criteria matters.
• Game of chance: winners are selected randomly (for example, a random draw). These are often called “trade promotions” and permit or notification requirements can apply depending on the state/territory, the prize value, and how the promotion is run.

If you’re unsure which category your promo falls into, it’s worth getting advice before you launch - changing the rules mid-way is a common (and avoidable) headache.

Free Entry vs “Purchase To Enter”

A “no purchase necessary” promo is usually simpler from a risk perspective than a promotion where customers have to buy something to enter.

If purchase is required, you need to be especially careful about clarity, fairness, and ensuring your advertising matches the actual rules. This ties closely to Australian Consumer Law obligations around advertising and conduct.

Raffles And Fundraising Promotions

Some businesses (and many community organisations) use the word “raffle” loosely, but raffles and lotteries are typically heavily regulated in Australia and are generally not something a business can just run without checking licensing requirements first. If your promotion starts looking like a raffle (particularly if entry is paid), you should check the applicable rules in your state or territory (and get advice if needed) before launching.

What To Include In Your Competition Terms And Conditions Template

If you want your competition terms and conditions template to be genuinely useful (not just filler text), it should cover the practical, real-world points where disputes usually arise.

Here are the key clauses and sections Australian businesses typically need.

1. Promoter Details

Start with who is running the competition (the “Promoter”). This should include:

• legal name of your business (or company name)
• ABN/ACN (where relevant)
• business address (or registered office)
• contact details (email is usually fine)

This is a simple section, but it’s important for transparency and accountability.

2. Eligibility (Who Can Enter?)

Your template should include an eligibility clause you can easily adjust each time. It should cover:

• geographic eligibility (e.g. Australia-wide, or specific states/territories only)
• age limits (e.g. 18+), and what happens if someone under the age enters
• employee exclusions (e.g. employees of the promoter and immediate family members can’t enter)
• residency requirements (e.g. must be an Australian resident)

If you’re running the competition through a third party (like an agency) or with partners, also consider whether their staff should be excluded too.

3. Competition Period (Start And End Dates)

Include clear dates and times for:

• opening of entries
• closing of entries
• draw/judging date
• notification date

Be specific about time zones (for example, “AEST”). This is one of the most common sources of arguments - especially for online competitions where entries can come from anywhere.

4. How To Enter

This section should be extremely clear and written in plain English. For example:

• steps required to enter (e.g. fill out a form, follow an account, tag a friend)
• entry limits (e.g. one entry per person, or multiple entries allowed)
• whether entry is free
• what counts as a valid entry (and what does not)

If entry requires submitting content (photos, videos, written answers), your terms should say what format is allowed and whether any content restrictions apply.

5. Prize Details (And What’s Excluded)

Your competition terms and conditions template should include a prize clause that covers:

• what the prize is (be specific - model numbers, colour, inclusions)
• prize value (commonly included, and can matter for permit thresholds or notification rules in some jurisdictions)
• number of prizes and whether there are runner-up prizes
• any conditions (e.g. travel dates, booking requirements)
• what’s excluded (e.g. flights not included, insurance not included)

Also include the standard protections:

• prize is not transferable
• prize is not redeemable for cash (unless you intend it to be)
• what happens if the prize becomes unavailable (e.g. you may substitute for a prize of equal or greater value, where permitted)

This is also a good place to sanity-check your promotional claims. If you’re advertising “Win a $5,000 holiday”, make sure the prize clause backs that up.

6. Winner Selection (Random Draw Or Judging Criteria)

This is where many templates fail, because they use vague wording that doesn’t match the actual competition mechanics.

If it’s a random draw, include:

• where and how the draw occurs (and who conducts it)
• how you will ensure entries are included (especially if you’re collecting via multiple channels)
• whether reserves will be drawn

If it’s a judged competition, include:

• who the judges are (by role, not necessarily by name)
• the judging criteria (e.g. originality, creativity, relevance)
• how decisions are made and that the decision is final (where appropriate)

From an Australian Consumer Law perspective, you want your conduct to match what you promised. If you say “most creative entry wins” but you actually draw randomly, that’s a real risk.

7. Winner Notification And Publication

Set out how and when winners will be notified (email, phone, direct message), and what happens if they don’t respond.

Also include how winner names may be published (for example, on your website or social channels), and consider privacy obligations if you’re collecting personal information. If you’re collecting entries via your website (or email list), having a proper Privacy Policy in place is often a key part of running promotions properly.

8. Redraws, Unclaimed Prizes, And Disqualification

Your template should cover practical “what if” scenarios, such as:

• what happens if a winner can’t be contacted
• timeframe for claiming the prize
• your right to redraw (noting that redraw requirements can vary depending on your state/territory and whether a permit applies)
• your right to disqualify entries that are incomplete, fraudulent, or do not comply with the terms

Be careful: disqualification rights should be exercised fairly and consistently. The goal is to protect your business, not give you unlimited discretion to change outcomes after the fact.

9. Your Rights To Cancel, Suspend Or Vary The Competition

It’s common to include a clause allowing you to cancel, suspend, or vary the competition if something outside your control occurs (for example, a platform outage or tampering).

However, you should be cautious about overly broad “we can change anything at any time” wording. If you vary the competition in a way that disadvantages entrants, you can create reputational issues and potential legal risk.

If you need to make changes, transparency is key - update the terms, communicate clearly, and consider whether you should extend timeframes to be fair.

10. Limitation Of Liability (Handled Carefully)

Most competition templates include a limitation of liability clause dealing with things like:

• technical issues preventing entry
• lost, late, or misdirected entries
• prize use risks (where relevant)

These clauses can be useful, but they need to be drafted carefully - especially because consumer protection rules can limit how far you can exclude certain guarantees or liability.

If you want to understand this area better before relying on “standard” wording, it helps to be across limitation of liability clauses and what they can (and can’t) do in Australia.

11. Intellectual Property And Content Permissions (User-Generated Content)

If entrants submit content (photos, videos, testimonials, designs), include clauses covering:

• whether entrants confirm they own the rights to the content
• whether they give you permission to repost/use it (and for how long)
• any moral rights consents (where appropriate)
• what happens if the content infringes someone else’s rights

This is particularly important for social media promotions, where “tag us to enter” often results in you wanting to reshare entries later.

12. Privacy And Marketing Consent (Be Clear)

If your competition involves collecting names, emails, phone numbers, or addresses, you’re collecting personal information. That means you should think about:

• what information you collect and why
• how you store it and for how long
• whether you’ll use it for marketing
• how entrants can opt out

If the competition is run through a landing page on your site, you may also need Website Terms and Conditions that support your site use rules alongside your competition rules.

If you intend to add entrants to a mailing list, it’s generally safer to have an explicit opt-in tick box, rather than burying consent in fine print.

13. Platform Disclaimers (Social Media Competitions)

If you run a competition on social media, you usually need to make it clear the promotion is in no way sponsored, endorsed, administered by, or associated with the platform (wording varies depending on the platform’s terms).

You should also ensure your entry mechanic complies with the platform’s rules (for example, some platforms restrict certain “tag your friends” mechanics).

Common Legal Risks When Running Competitions In Australia

Most businesses run competitions with good intentions. The problems usually come from rushed launches and vague rules.

Here are some common risk areas we see.

Misleading Or Unclear Advertising

If your promo post says one thing but the terms say another, you can end up with complaints that you’ve misled customers.

Even if it’s an honest mistake, it can still cause issues under the Australian Consumer Law. It’s worth understanding the elements of misleading or deceptive conduct so you can pressure-test your ads and terms before launching.

Not Handling Personal Information Properly

Competitions are often used to collect leads. That’s fine - but if you’re collecting personal information, you need to handle it responsibly and tell entrants what you’re doing with it.

As your business grows, privacy compliance usually becomes more important (and more visible). A competition is often the first time a small business starts collecting personal information at scale.

Not Understanding Permit And Unclaimed Prize Rules

One of the most common blind spots is assuming the same rules apply Australia-wide. In reality, trade promotion rules can differ between states and territories, and the steps you need to take can depend on factors like prize value, whether the winner is chosen by chance, and where entrants are located.

Unclaimed prizes can also trigger specific requirements (including how long a prize must remain claimable and how a redraw must be handled), especially where a permit applies. If you’re running a larger promotion or a random draw, it’s worth checking the rules that apply to your particular circumstances before launch.

Not Having A Clear Dispute Process

Even with the best planning, things can go wrong: duplicate entries, allegations of cheating, a prize that can’t be supplied, or a winner who can’t be reached.

Good terms won’t stop every complaint, but they give you a consistent framework to respond fairly and confidently.

Using A Generic Template Without Customising It

A competition terms and conditions template is a starting point - not a final product.

If you copy a template that assumes a random draw when you’re actually judging, or it doesn’t match your entry method (for example, it mentions “email entries” when you’re using Instagram comments), you can end up with a mismatch that creates confusion and risk.

Do You Need Any Other Legal Documents When Running A Competition?

Your competition terms and conditions template is important, but it’s usually not the only legal document relevant to a promotion.

Depending on how you run the competition, you may also need:

• Privacy Policy (especially if you’re collecting personal information online): Privacy Policy
• Website Terms if the competition is hosted on your site or you’re directing traffic to your site: Website Terms and Conditions
• Marketing terms if you’re running email or SMS campaigns (including making sure your opt-in/opt-out settings are appropriate)
• Supplier or sponsor agreements if another business is contributing prizes (so responsibilities are clear)

If you’re also running the promotion as part of a broader sales campaign (for example, “buy X and go in the draw”), it can also be worth checking your broader customer-facing terms (such as refund handling and claims about your goods/services).

Key Takeaways

• A well-drafted competition terms and conditions template helps you run promotions clearly and protects your business if disputes arise.
• Your terms should match the type of promotion you’re running (game of skill vs chance, free entry vs purchase-to-enter), and reflect your real entry method and winner selection process.
• Strong competition terms usually include eligibility rules, dates, entry instructions, prize details, winner selection method, notification, disqualification rights, and a fair approach to cancellations or changes.
• If you collect personal information through your competition, you should clearly explain how you handle it and have a compliant Privacy Policy in place.
• Be careful with advertising and public claims - inconsistency between your promo post and your terms can create risk under Australian Consumer Law.
• For random-draw promotions and higher-value prizes, check state/territory permit and unclaimed prize rules early, as requirements can vary depending on where entrants are and how the promotion is structured.

If you’d like a consultation about drafting or reviewing your competition terms and conditions, you can reach us at 1800 730 617 or team@sprintlaw.com.au for a free, no-obligations chat.