Featuring online giveaway legal links based on your location
Hosting an online giveaway is a fantastic way to boost visibility, engage your audience, and create excitement around your brand.
However, before you start throwing freebies into the digital realm, there are some important rules to follow especially here in Australia, where giveaway laws vary by state.
Here’s your go-to guide for hosting an effective (and legal) giveaway that gets results!
1. Understand the Legalities
Giveaways (or competitions, as they’re sometimes called) fall under trade promotions and may require a permit depending on where you’re running them.
If your giveaway is based purely on chance (e.g. “like and comment to win”), it might be subject to state gambling laws (I know, seems extreme doesn’t it).
If it’s based on skill (e.g. “tell us in 25 words or less…”), you generally won’t need a permit, which is why we see that option a LOT.
Here’s a quick rundown for hosting an online giveaway in Australia:
- NSW – Trade promotion lotteries require a permit if the prize pool is over $10,000. Check here.
- VIC – No permit required for trade promotions but you must comply with the Gambling Regulation Act 2003 and Gambling Regulations 2015. More info.
- QLD – Permit needed if the total prize value exceeds $5,000. Learn more.
- SA – Permit required for all trade promotions, regardless of prize value. Read this
- WA, TAS, ACT, NT – Varying rules, so you will need to double-check the legalities with your relevant state authority before launching your giveaway.
- AU – Also triple triple-checking you’re staying in line with federal laws is a good idea too. Learn more.
2. Choose a Popular Product
The best online giveaways feature your most popular or best-selling product.
Why? Because you already know there’s demand!
This ensures maximum excitement and engagement while introducing potential customers to a product they might be keen to purchase later.
3. Keep Entry Rules Simple
Nobody wants to jump through thousands of hoops just to enter a giveaway. Stick to easy-to-follow rules like:
- Like this post
- Follow this account
- Mention a friend (or three!)
Avoid requiring users to share to their stories unless optional, as Instagram’s rules discourage “share-to-win” style competitions.
Member Bonus!
A downloadable checklist of prompts for you to think about before and after you post to Instagram. Get yours.
4. Follow Instagram and Facebook Guidelines
Both platforms have strict rules about promotions for when you’re hosting an online giveaway.
You must:
- Acknowledge that your giveaway is not affiliated with or endorsed by Instagram/Facebook.
- Not require users to tag themselves in an image they’re not in.
- Run the giveaway from a business account, not a personal one.
Check out the full guidelines here:
Do you even need hashtags? Well yes. Obvs.
In this bite-sized video, Renée gives us her expert tips on how to work with Instagram hashtags to your businesses advantage. From which ones to choose through to how to use them effectively, this bite-size video is a bonanza for makers keen to be seen on this important platform.
5. Be Transparent About Terms and Conditions
To keep things fair (and legal), you should clearly state:
- The start and end date of the giveaway.
- Who can and can’t enter (e.g., Australian residents only, 18+).
- How the winner will be chosen and notified.
- If the prize includes shipping or if the winner covers it.
Hot tip: Pin a comment with these details on your giveaway post or link to a terms and conditions page on your website.
6. Announce Winners Properly
To maintain trust with your audience, be clear and fair when selecting and announcing winners. Avoid editing old posts (it looks shady). Instead:
- Announce the winner in a new post or story.
- Contact them directly via DM or email.
- Watch out for scam accounts pretending to be you! (It’s getting more and more common for fake profiles to pop up and message entrants – bots can be programmed for keywords, then mimic your account.)
7. Maximise Marketing Impact
A giveaway is more than just free stuff—it’s a marketing tool. Here’s how to make the most of it:
- Encourage entrants to sign up for your newsletter for a bonus entry.
- Use it to increase engagement (get more comments, follows, and shares).
- Follow up with all entrants with a special discount or exclusive offer.
- Collaborate with fellow makers for an even bigger prize pack (and reach!).
Planning your next giveaway? You need the The Maker’s Interactive Content Planner, designed specifically for makers in business. Members, download here.
A well-planned giveaway can bring new followers, potential customers, and a whole lot of attention to your brand. Just make sure to follow the rules, keep it simple, and make it worth the excitement.
P.S. Don’t forget to check your state’s regulations before launching your giveaway to keep everything above board!
And if you’re really wanting to make it water tight, engaging a lawyer is a great idea.
Legal 123 can help:
