How To Get A Trade Promotion Permit In NSW

Running a competition, giveaway or prize draw is a great way to boost engagement and reward your customers. If you’re planning a trade promotion in New South Wales (NSW), you’re probably wondering whether you still need a permit and what rules apply.

The good news is that in NSW, permits for trade promotions were removed - but there are still clear rules you must follow to stay compliant. In this guide, we’ll explain what counts as a trade promotion, whether a permit is required, and the practical steps to set up your promo legally, from drafting fair Terms and Conditions to handling personal data the right way.

By the end, you’ll have a simple, step-by-step plan to launch your NSW competition confidently - and know when to get help from a legal expert so everything runs smoothly.

What Is A Trade Promotion In NSW?

A trade promotion is a free-to-enter competition used to promote your business, products or services. The “prize” can be anything of value - gift cards, products, experiences, cash, or discounts - as long as entry doesn’t cost more than standard communication charges (for example, normal SMS or postage fees).

Trade promotions can be games of chance (e.g. random draw, instant win, barrel draw) or games of skill (e.g. best answer wins). Many businesses run hybrid promotions (skill-based entry followed by a chance draw), which is fine if your Terms and Conditions are clear.

If you’re comparing options, it’s worth revisiting the broader rules for running promotions and giveaways across Australia, including how the Australian Consumer Law (ACL) applies to advertising and prizes. Our overview of giveaway laws in Australia is a helpful companion resource.

Do You Still Need A Trade Promotion Permit In NSW?

No - NSW removed the requirement for trade promotion permits. You can usually run a trade promotion without applying for a permit, provided you comply with the applicable NSW rules for “games of chance” promotions and general consumer and privacy laws.

That said, if your promotion is open to entrants in other Australian states or territories, you may still need a permit elsewhere. Some jurisdictions continue to require permits for certain prize pools or promotion types. If you’re going national, it’s best to get tailored advice on operating a competition so you’re covered across the board.

Also keep in mind that some prize categories (for example, alcohol, tobacco or certain high‑risk items) can attract extra rules about advertising and winner eligibility. We touch on these below.

How To Run A Legal Trade Promotion In NSW: Step-By-Step

1) Define Your Promotion Clearly

Decide if it’s chance, skill or both. Set the promotion name, entry dates, eligibility (age, residency), how to enter, the prize pool and how winners will be selected and notified.

2) Draft Competition Terms And Conditions

Your Terms and Conditions (T&Cs) are the backbone of a compliant promotion. They should be easy to find and read, and cover the rules of entry, winner selection, verification, unclaimed prizes, liability caps and dispute handling. Most businesses use tailored Competition Terms & Conditions so everything is clear and enforceable.

3) Plan Your Advertising And Entry Mechanics

Check that your ads are truthful, not misleading and consistent with your T&Cs. If you’re emailing customers, ensure your campaign follows Australia’s spam rules and email marketing laws. If social media is involved, review the platform’s promotion guidelines and make sure your formatting doesn’t hide material terms (like eligibility or closing dates).

4) Set Up Privacy Compliance

Promotions often collect personal information (names, emails, phone numbers, user-generated content). At a minimum, your entry page should link to a Privacy Policy and include a clear Privacy Collection Notice explaining why you’re collecting the data and how it will be used, stored and shared (for example, public winner announcements or marketing consents).

5) Prepare The Draw Or Judging Process

For chance-based promotions, use a fair and random method (e.g. independent randomiser or barrel draw). For skill-based promotions, set objective judging criteria and record how winners were chosen. Keep records of entries, the draw process and outcomes.

6) Run The Promotion And Keep Proper Records

Open entries on time, manage any variations transparently (and in line with your T&Cs), and publish winners as promised. Keep your winner verification and prize distribution records for a reasonable period in case of complaints or audits.

7) Award Prizes Promptly And Handle Unclaimed Prizes

Deliver prizes within the timeframe in your T&Cs. If a prize is unclaimed by a stated date, follow your published redraw or re‑award process. Communicate clearly with winners and keep proof of delivery or collection.

What Rules Apply? Key Compliance Requirements

Free To Enter

Entry into a trade promotion must be free (apart from ordinary communication or postage costs). Avoid premium-rate phone or SMS numbers, paid entry fees, or conditions that effectively require a purchase to enter unless the “purchase” element is permitted and transparently disclosed in your T&Cs.

Clear, Accurate Advertising

All advertising must be accurate and consistent with your T&Cs. Under the Australian Consumer Law, you can’t mislead or deceive consumers about eligibility, odds, prize value, timing, or the number of prizes. If you’re promoting discounts or “was/now” pricing as part of your campaign, make sure your statements comply with advertised price laws to avoid penalties.

Chance Versus Skill Mechanics

Chance-based draws should use a fair, random method and be conducted when and how your T&Cs promise. For skill-based giveaways, define judging criteria (for example, creativity or originality) and have a reasonable process to apply those criteria consistently.

Eligibility, Age And Restricted Prizes

If your prize involves alcohol, age restrictions apply. You’ll need to exclude minors and ensure your advertising doesn’t encourage irresponsible consumption. Similar care is required with other restricted items (e.g., knives). For more context on what counts as “gambling” versus a lawful promotion, see our guide on gambling laws in Australia.

Winner Notification And Publication

Notify winners as set out in your T&Cs and be ready to verify identity and eligibility (for instance, age or residency). If you say you’ll publish winners on a website or social media page, make sure you actually do it and keep the post live for a reasonable period.

Unclaimed Prizes And Redraws

Your T&Cs should set a clear timeframe for claiming prizes, plus a redraw or re‑award process if the original winner can’t be contacted or verified. Follow that process precisely and document it.

Privacy And Data Handling

Only collect the personal information you actually need, store it securely, and use it as described in your collection notice and Privacy Policy. If you’re sharing data with sponsors or publishing user-generated content, be upfront about it. If you handle significant volumes of data, consider how you’ll manage risks and whether broader privacy compliance support would help.

Social Media Platform Rules

Facebook, Instagram, TikTok and other platforms set their own rules for promotions (for example, requiring a release or prohibiting you from using certain engagement mechanics). Your campaign must meet both the platform rules and your legal obligations.

Record Keeping And Audit Trail

Keep records of entries, draw mechanics, judges and scoring for skill‑based contests, winner notifications, and prize distribution. Good records help resolve complaints and demonstrate compliance if regulators ask questions.

What Legal Documents Should You Prepare?

A compliant promotion is built on clear, accessible documents. Most NSW businesses running a trade promotion will need some or all of the following:

• Competition Terms & Conditions: Sets the rules of your promotion, including eligibility, entry method, prize details, draw/judging process, winner notification, unclaimed prizes and liability limits. Tailored Competition Terms & Conditions reduce disputes and compliance risk.
• Privacy Policy: Explains how you collect, use, store and disclose personal information from entrants and winners. This is essential for most digital promotions and can be hosted on your site for easy reference in ads and entry pages. Use a compliant, plain‑English Privacy Policy.
• Privacy Collection Notice: A short notice on your entry form telling entrants what data you’re collecting, for what purposes (e.g., administering the promotion and marketing, if consented) and who you’ll share it with. A tailored Privacy Collection Notice helps you meet Privacy Act requirements.
• Website Terms & Conditions: If entry happens on your website or app, your Website Terms & Conditions should set acceptable use rules and limit your platform liability alongside your competition T&Cs.
• Sponsorship/Collaboration Agreement (if applicable): When partnering with brands or influencers to co‑promote, use an agreement setting out deliverables, rights to content, prize contributions, timing, and indemnities.
• Marketing Compliance Checklist: Ensure your email journeys, landing pages and social media posts align with the ACL and spam laws. Our team regularly supports businesses with email marketing laws so campaigns are both effective and compliant.
• Internal Draw/Judging Protocol: A short internal guide for staff covering how to run the draw or judging, verification steps, and record keeping, so your team follows the T&Cs precisely.

Not every promotion needs every document, but most will need robust Competition T&Cs and privacy documentation at a minimum. If you’re running a national promotion, talk to us about jurisdiction-specific requirements and any remaining permit obligations in other states and territories.

Key Takeaways

• NSW no longer requires trade promotion permits, but you must still follow the rules for lawful games of chance or skill, plus general consumer and privacy laws.
• Define your promotion clearly, publish comprehensive Competition Terms & Conditions, and make sure your ads and entry mechanics match those rules.
• Be transparent about eligibility, prize values, timing and odds, and keep a solid audit trail of your draw or judging process and winner notifications.
• If you collect personal information, link your entry form to a compliant Privacy Policy and Privacy Collection Notice and store data securely.
• Consider platform rules, restricted prize categories (like alcohol), and national entry implications if your promotion extends beyond NSW.
• Tailored documents and early legal input reduce risk and save time - especially for higher-value prize pools or multi-state campaigns.

If you’d like a consultation on running a NSW trade promotion or preparing Competition Terms & Conditions, you can reach us at 1800 730 617 or team@sprintlaw.com.au for a free, no-obligations chat.