Car Giveaways: Lets talk about the industry

What is a Car Giveaway?

There’s certain car giveaways that offer promotions to customers who sign up for an ongoing membership. This means that while a reoccurring member you’d be in each draw to win a car. In a nutshell, these car giveaways are a trade promotion which automatically enters members into competitions to win prizes.

What is a trade promotion?

A car giveaway trade promotion is a marketing strategy used by businesses to attract customers and generate excitement around their products or services. In this type of promotion, a company offers the chance for customers to win a car as an incentive for participating in their trade promotion.

Here’s a general overview of how a car giveaway trade promotion might work:

1. Objective and Planning: The company establishes its objectives for the promotion, such as increasing sales, attracting new customers, or promoting a new product or service. They plan the promotion, including the duration, eligibility criteria, and the type of car to be given away.
2. Promotion Mechanics: The company determines the mechanics of the trade promotion, which could include various methods such as a raffle, a contest, or a random selection process. They define the entry requirements, such as making a purchase, completing a specific action, or meeting certain criteria.
3. Communication and Promotion: The company promotes the trade promotion through various channels to reach its target audience. This may include advertising through TV, radio, online platforms, social media, email marketing, and in-store displays. The promotion details, including entry requirements, deadline, and terms and conditions, are clearly communicated to potential participants.
4. Entry and Participation: Customers interested in participating in the promotion follow the specified entry requirements. This could involve making a purchase, filling out an entry form, submitting receipts, or performing specific actions like sharing on social media or referring friends.
5. Random Selection or Contest Evaluation: Once the entry period ends, the company conducts a random selection process or evaluates contest entries to determine the winner(s) of the car. The selection process should be fair and transparent to maintain the integrity of the promotion.
6. Winner Announcement: The company publicly announces the winner(s) through various channels, such as their website, social media platforms, and direct communication with the winners. They may also consider organizing an event to award the car to the winner(s) and generate further publicity.
7. Fulfillment and Legal Requirements: The company fulfills the prize by providing the car to the winner(s) in accordance with the terms and conditions of the promotion. They may also have to comply with legal requirements, such as tax obligations or licensing and registration procedures, depending on the jurisdiction.

It’s important for companies to ensure their trade promotion complies with local laws and regulations, as there may be specific rules governing contests, giveaways, and advertising promotions. Consulting with legal professionals experienced in promotional marketing can help navigate these requirements and ensure a successful and compliant promotion.

What Permits are needed to run an Car Giveaway?

Please Note: this is subject to change.
If your business is looking to run a trade promotion style Car Giveaway, they may need to apply for a permit under the relevant state law. There’s many factors on what requires a permit, we suggest you get legal advice in this area however here are some of the factors:

• The prize value of your trade promotion;
• The type of trade promotion you are conducting
• The location where your trade promotion is conducted
• Game Of Chance Trade Promotion

What is a Game Of Chance?

Games of Chance are competitions where a degree of chance is involved in determining the winner(s).  A game of chance provides all entrants with an equal chance of winning and picks a winner at random. The operator of the promotion is not able to factor in any skill when determining the winners. The game of chance is the same as a ‘game of luck’.

A “game of chance trade promotion” refers to a marketing promotion or campaign in which participants have the opportunity to win prizes or rewards through games that involve an element of chance. These promotions are often used by businesses to attract customers, drive sales, and create excitement around their products or services.

In a game of chance trade promotion, participants typically engage in games or activities where the outcome is determined by luck or random factors, rather than skill. Some common examples include:

1. Sweepstakes: Participants enter a drawing or random selection process to win prizes. Winners are chosen at random, and the chance of winning depends on the number of entries received.
2. Instant Win Games: Participants play a game or scratch-off card where the result is revealed immediately. The game determines if they have won a prize or not, and the distribution of winning moments is typically predetermined.
3. Spin-to-Win Wheels: Participants spin a wheel that is divided into various segments representing different prizes or rewards. The prize they win depends on where the wheel stops after the spin.
4. Random Number or Code Generators: Participants receive a unique number or code and enter it into a system. If their number or code matches a predetermined winning combination, they receive a prize.

These promotions often require participants to meet certain eligibility criteria, such as making a purchase, completing an entry form, or fulfilling specific actions. The terms and conditions, including entry requirements, prize details, and promotion duration, are typically communicated to participants to ensure transparency and fairness.

It’s important for businesses to comply with local laws and regulations when conducting game of chance trade promotions, as there may be specific rules governing contests, giveaways, and promotional activities. Consulting with legal professionals experienced in promotional marketing can help ensure compliance and a successful promotion.

Terms and Conditions of your Car giveaway

Businesses have to ensure they have clear and thorough Terms and Conditions (T&Cs) before promoting or running their competition. When obtaining permits you would need to submit these to the relevant regulator.

T&Cs are an important part when running any car giveaway. These are crucial as it’ll outline your liability as a business and may help you avoid any large fines, legal disputes and penalties. Remember that the T&Cs will be a legally binding where each entrant will have to agree upon when entering your car giveaway competition. Things like liabilities and more will be set out in the T&Cs.
When creating T&Cs some questions to think about are:

• The rights that each entrant has
• Operating model for the competition
• Faulty Prize, who’s liable and what happens
• What happens when the prize selection system malfunctions

Are giveaways legal in Australia?

Yes, giveaways and promotional contests are legal in Australia. However, there are certain regulations and laws that businesses must adhere to when conducting giveaways to ensure compliance and protect consumers. It’s essential to understand the legal requirements to run a giveaway in Australia.

Here are some key considerations:

1. Trade Promotion Permits: In some Australian states and territories, businesses may be required to obtain a permit or license to conduct a trade promotion (including giveaways) if the total prize value exceeds a certain threshold. The specific requirements vary by jurisdiction, so it’s important to check the regulations in the relevant state or territory.
2. Terms and Conditions: Businesses must have clear and comprehensive terms and conditions for their giveaways. These terms should outline entry requirements, eligibility criteria, prize details, entry deadlines, and any other relevant information. The terms and conditions should be easily accessible to participants, such as being published on a website or provided with promotional materials.
3. No Purchase Necessary: It is generally required that giveaways in Australia offer a free alternative method of entry, which means participants should be able to enter the promotion without making a purchase or providing consideration. This ensures fairness and compliance with Australian consumer law.
4. Privacy and Data Protection: Businesses must comply with Australian privacy laws when collecting and handling participants’ personal information during a giveaway. Adequate consent and data protection measures should be in place to protect participants’ privacy.
5. Truth in Advertising: All promotional materials and communications related to the giveaway must be truthful, accurate, and not misleading. Businesses should avoid making false claims or misrepresenting the giveaway to consumers.
6. State and Territory Regulations: Different states and territories in Australia may have specific regulations and requirements regarding giveaways. It’s important to be aware of any additional rules or restrictions that apply in the specific jurisdiction where the promotion will be conducted.

To ensure compliance with the relevant laws and regulations, businesses may seek legal advice or consult with professionals experienced in promotional marketing in Australia. They can help navigate the legal requirements, obtain necessary permits if applicable, and draft appropriate terms and conditions for the giveaway.

What Types of Car Giveaways are popular?

Most car giveaways buy interesting cars, something that stand out. This would includes classic car giveaways where vintage and collects cars are included as a classic car giveaway prize. You’ll also find many super car giveaways with a lot higher stakes for the winner of each supercar car giveaway prize.

Key Takeaways and Recap

Car Giveaways and trade promotions are good advertising tool. This will allow you to gain brand awareness and promote new products. When running any business you might need a motivational online course to help you stay accountable for your business.

You do not need a permit or authority for trade promotions that involve games of skill. Generally speaking, if the prize pool for your game of chance is:

• less then $3,000, you do not need a permit;
• between $3,000 and $5,000, you only need a permit in the ACT;
• $5,000 or over, you need a permit in the ACT, SA and NT; and
• $10,000 or over, you need a permit in the ACT, SA, NT and NSW.

Staying abreast of State regulations before committing to a marketing campaign is essential. Ensure your business has clear competition rules and Terms and Conditions before launching a car giveaway promotion. It is also essential for businesses to watch out for misleading or deceptive advertising of their competition and prizes. Otherwise, you might have to pay heft penalties under the Australian Consumer Law.

Please Note: The advise on our website is general, we aren’t lawyers and highly recommended speaking to a legal team prior to proceeding with your trade promotions or Car Giveaway. We can however build you a professional website for your Car Giveaway competition that will be easy to use and help you convert sales from your marketing advertising campaign.