So, you’ve devised the perfect promotion for your startup, but have you ensured that your company is protected through detailed terms and conditions? Let’s look at what kinds of promos exist, why they’re important for drumming up business and then the essentials when drawing up T&Cs for company promotions.
Best practice examples
Promotions are a popular marketing device in a variety of highly competitive industries. In the iGaming sector, for example, we have countless online casinos competing for new players. In order to attract new customers, companies offer a range of incentives.
But you’ll notice every provider is careful to ensure that potential customers are aware of the terms and conditions of the respective promotion from online operators. As customers weigh up which the best free spins no wagering casinos are, they’ll find most providers make them aware of the offer and aim to make it clear what the promo entails, for example, with regard to any limits on the maximum win from the free spins.
Highly competitive industries such as the fashion sector regularly employ promotions to appeal to customers, while recognising the necessity to protect the company through detailed terms and conditions.
The fast fashion retailer PrettyLittleThing regularly holds highly successful competitions on its social media channels, including Twitter, Instagram and TikTok. Twitter competitions such as WYOB (Win Your Order Back), the 6 Months Beauty Box Subscription Competition and the £250 Credit Competition regularly result in many thousands of retweets, likes and comments.
The £250 PrettyLittleThing Credit Giveaway in September 2022, for example, fully complied with regulations. The prize draw tweet included significant terms and conditions, with instructions to simply like the tweet and comment by posting a heart emoji. There was also a link to the extensive T&Cs of the competition.
What you need to know when running a promo
The Committee of Advertising Practice (CAP) sets out the rules and regulations of promotional marketing. This begins with the promotional materials themselves, which must include all significant terms and conditions, which are likely to affect the understanding of a specific promotion from the perspective of a consumer and their decision to participate in the promo.
Significant T&Cs are considered to be:
- how consumers participate in the promotion, including potential costs
- an explanation with regard to free entry
- the start date, if applicable
- the closing date
- proof of purchase requirements, if applicable
- information regarding the nature and number of competition prizes
- information regarding restrictions, including age, date or geographical restrictions
- possible limits on availability
- the name and address of the promoter.
The advice stipulates that information with regard to all other T&Cs should also be available to entrants, which in the case of internet competitions can be placed on the company’s website with a link included on the advert. This more detailed information includes, among other aspects:
- restrictions on the number of entrants
- a possible cash alternative
- how and when winners are to be notified
- any intention to use winners in publicity materials
The pitfalls of incomplete T&Cs
Recent examples demonstrate the potential pitfalls when producing the terms and conditions of promotions. Companies ruled against by the Advertising Standards Authority include a lack of information which pointed out that entrants were obliged to respond to the prizewinning confirmation email within 24 hours and a failure to provide full T&Cs about a free food delivery trial until after consumers had actioned their order. Companies should also ensure that ads on social media are labelled as such to avoid ASA censure.
Hopefully this guide will have given you plenty of food for thought when devising promotions for your startup. Provided you include detailed T&Cs, there is nothing to get in the way of your next big promo, for which, incidentally, we have a wealth of resources, particularly when you need to come up with promotions on social media.