170. Promotional competitions
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(1) A person shall not directly or indirectly inform a consumer that the consumer —
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(a) has won a competition, if —
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(i) no competition has in fact been conducted,
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(ii) the consumer has not expressly or implicitly entered into such a competition, or has not in fact won the competition,
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(iii) the prize for that competition is subject to a previously undisclosed condition, or
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(iv) the consumer is required to offer further consideration for the prize, after the results of the competition have been announced; or
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(b) has a right to a prize or benefit —
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(i) that the consumer has not solicited or to which the consumer does not in fact have a right,
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(ii) if the prize or benefit was generally available or offered to all similar prospective consumers or class of prospective consumers,
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(iii) if, before becoming eligible to receive the prize or benefit, the consumer is required to offer further consideration for the prize or to purchase any particular goods or services.
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(2) The promoter of a promotional competition shall —
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(a) not require any consideration to be paid by or on behalf of any participant in the promotional competition;
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(b) file a copy of the competition rules in the prescribed manner and form with the Council no later than the date on which consumers are first able to participate in the competition;
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(c) make the competition rules available on request and without cost to any participant;
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(d) not award a prize in a competition to —
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(i) a winner of the competition if it is absolutely unlawful to supply those goods or services to the prize winner, but this sub-paragraph does not preclude a prize to a person merely because that person's right to possess or use the prize is or may be restricted or regulated by, or otherwise subject to, any public regulation, or
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(ii) any person who is a director, member, partner, employee or agent of, or consultant to the promoter, or any other person who directly or indirectly controls, or is controlled by, the promoter, or to a supplier of goods or services in connection with that competition.
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(3) For greater certainty in applying subsection (2)(a), a promoter shall be regarded as having required or received consideration in respect of a promotional competition if —
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(a) the participant is required to pay any consideration, directly or indirectly for the opportunity to participate in the promotional competition, for access to the competition, or for any device by which a person may participate in the competition;
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(b) participation in the promotional competition requires the purchase of any goods or services, and the price charged for those goods or services is more than the price, excluding discounts, ordinarily charged for those or similar goods or services without the opportunity of taking part in a promotional competition.
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(4) An offer to participate in a promotional competition must be in writing, and must fully and clearly state —
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(a) the benefit or competition to which the offer relates;
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(b) the steps required by a person to accept the offer or to participate in the competition;
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(c) the basis on which the results of the competition will be determined;
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(d) the maximum number of potential participants in the competition, and the odds of winning any particular prize in that competition;
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(e) the medium through or by which the results of the competition will be known, if any; and
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(f) any person from whom, any place where, and any date and time on or at which the successful participant may receive any prize.
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(5) The requirements of subsection (4) may be satisfied —
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(a) directly on any medium through which a person participates in a promotional competition;
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(b) on a document accompanying any medium contemplated in paragraph (a); or
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(c) in any advertisement that —
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(i) is published during the time and throughout the area in which the promotional competition is conducted,
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(ii) draws attention to and is clearly associated with the promotional competition.
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(6) The right to participate in a promotional competition is fully vested in a person immediately upon —
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(a) complying with any conditions that are required to earn that right; and
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(b) acquiring possession or control of any medium through which a person may participate in that promotional competition.
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(7) The right to any benefit or right conferred on a person as a result of that person's participation in a promotional competition is fully vested immediately upon the determination of the results of the competition.
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(8) A right contemplated in subsection (6) or (7) must not be —
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(a) made subject to any further condition; or
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(b) contingent upon a person —
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(i) paying any consideration to the promoter for the prize, or
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(ii) satisfying any further requirements than those stipulated in terms of subsection (4).
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(9) The Minister may, after consultation with the Council, prescribe —
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(a) a monetary threshold for the purpose of excluding competitions with low value prizes from the definition of “promotional competition”;
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(b) minimum odds for prizes or categories of prizes offered in terms of any promotional competition;
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(c) minimum standards and forms for keeping records associated with promotional competitions; and
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(d) audit and reporting requirements in respect of promotional competitions.
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(10) A promoter shall not continue advertisements of the promotional competition after the promotional competition is held.
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(11) A promoter who contravenes this section commits an offence and is liable on summary conviction to a fine not exceeding $5,000 or, to imprisonment for a term not exceeding 2 years or to both.
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(12) In this section —
“participant” means a person who expressly or implicitly enters into a promotional competition;
“promoter” means a person who directly or indirectly promotes, sponsors, organizes or conducts a promotional competition, or for whose benefit such a competition is promoted, sponsored, organized or conducted.