One of the most common complaints to the Advertising Standards Authority concern misleading advertisements. In New Zealand, the Fair Trading Act 1986 prohibits conduct that is, or is likely to be, either misleading or deceptive or is a false or misleading representation. Sometimes it can be hard to determine what is likely to mislead consumers but the key thing to remember is that, when making this assessment, it is the consumer’s interpretation that is relevant, not the advertiser’s.

If you’re a business looking to use such a promotion as part of your advertising campaign, here are our top ten best practice tips for running special offers and competitions:

1. When advertising “special offers” or “specials”, you must be offering something genuinely special, such as a lower price or an additional feature, otherwise, you risk misleading consumers.

2. Consumers may also be misled if a “special offer” is advertised widely but can only be taken up by a select group of people, e.g. if it applies only to consumers who are residents in a particular region. Therefore, make sure to clearly state any limitations or qualifications to a special offer.

3. All other conditions that apply to the promotion, including details on how to participate, proof of purchase requirements and any time limits, must be stated upfront and be clear, prominent and legible.

4. Make sure to provide an accurate description of the gifts and prizes, to prevent misleading consumers into thinking that what they stand to gain or win is better than it actually is.

5. Do not disguise the cost of a “free” gift or prize by including it in the selling price of the advertised goods.

6. For electronic entry forms in particular, where possible include a tick box, which says that the participant has read and accepted the terms and conditions of the competition.

7. If you are collecting personal information as part of the promotion, make sure that your organisation’s privacy policy is readily accessible to all those providing their details, and that this policy expressly provides for the participants right to access and correct their personal details.

8. If you are running a prize draw, make sure it is compliant with the requirements of the Sales Promotion Scheme under the Gambling Act 2003.

9. The Terms and Conditions of the competition should set out the criteria by which the winner will be chosen, where the competition is a game of skill and the winner is to be selected by a judging panel.

10. If running your promotion via social media, make sure to review the policies of the relevant social media platforms to ensure that the “special offer” or competition is compliant with any promotion guidelines or rules.

You can read more about best practice on special offers and competitions on the New Zealand Commerce Commission’s website.