South Australians are being warned to be on the lookout for unlicensed trade promotion lotteries, following concerns about an increase in unlawful activity around Australia.

The state’s consumer watchdog, Consumer and Business Services, has received complaints from charity groups concerned that some businesses were operating lotteries that didn’t comply with local laws and could undermine legitimate lotteries undertaken by the charity and not-for-profit sector.

Trade promotions are lotteries where businesses can promote their goods and services, such as a business offering customers who purchase a certain product the chance to win prizes.

In South Australia, a trade promotion lottery requires a licence if the total prize value exceeds $5000.

Consumer and Business Services has also prepared specific guidance for industry, to ensure traders are informed about whether their promotional activities meet the requirements of a trade promotion.

That guidance can be found online. Consumers who are concerned they may have seen an unlicensed or unlawful trade promotion lottery should contact CBS on 131 882.

We are seeing an increase in applications for trade promotion lotteries which fail to meet the key requirements.

We are also seeing an increase in applications for trade promotions lotteries linked to gambling providers.

This is incredibly concerning as participants may not realise they have agreed to be targeted with promotional gambling material when they enter.

Consumers should be aware that some trade promotions may be licensed interstate but not approved in SA, so always look for the SA Permit number in the terms and conditions.

As a result of the influx of non-compliant applications, CBS has stepped up its scrutiny of these applications to ensure that consumers do not encounter any unauthorised lotteries or trade promotions in South Australia.