Liquor and Gaming NSW

​OLGR takes action against shopping centre promotion

2 September 2011  [PDF,53kb]

The Office of Liquor, Gaming and Racing (OLGR) today announced a comprehensive response to address concerns over potentially misleading shopping centre promotions.

It follows an investigation into a promotion held by Dee Why Grand shopping centre following complaints from entrants alleging it was misleading.

OLGR is launching the following action to ensure the integrity of trade promotion lotteries including:

  • Initiating legal proceedings against Dee Why Grand shopping centre for alleged breaches of the Lotteries and Art Unions Act;
  • Strengthening standard Trade Promotion Lottery (TPL) permit conditions to require additional information to be included in promotional materials to clarify how draws will take place and the odds of winning the major prize;
  • Greater scrutiny of TPL permit applications by organisations proposing similar competitions, with additional conditions to be imposed if necessary or outright rejection if there is a risk the promotion would be misleading;
  • A comprehensive review of information and materials provided to shopping centres by the marketing company which designed the promotion to ensure it accurately reflects all relevant legal requirements and promotes best practice;
  • Formally referring the Dee Why Grand shopping centre promotion including materials provided by the marketing company to NSW Fair Trading to determine if it was misleading; and
  • Development of an online fact sheet for potential entrants of trade promotion lotteries to explain their rights and the responsibilities of competition holders.

OLGR Executive Director Elizabeth Tydd said the public must be adequately informed of how competitions will be conducted to prevent confusion and ensure fairness and integrity.

“OLGR’s investigation detected four alleged breaches of TPL permit conditions by Dee Why Grand for not including information on promotional material relating to where terms and conditions can be found and chances of winning the prize,” she said.

“We are now preparing a brief of evidence for review by the Crown Solicitor’s Office to initiate court action against Dee Why Grand for these alleged breaches and to determine if there is sufficient evidence to warrant prosecution for misleading lottery advertising.

“Court action could result in fines of up to $5,500 and future TPL permit applications being rejected. The matter will also be referred to NSW Fair Trading.

“Clearly some people were unaware that a second draw involving 250 envelopes would take place and that the $250,000 cash prize may not be won because of the existence of 249 consolation prizes.

“Promotions involving two tiered draws and consolation prizes have been staged successfully in the past as potential entrants have been adequately informed of how the competition will be conducted.

“I recognise that Dee Why Grand did take some steps to inform entrants of the structure of the promotion but clearly more care should have been taken given the large cash prize and the fact it was marketed to tens of thousands of people.

“Through the actions initiated by OLGR I hope we can avoid a repeat of this unfortunate situation.”