Using social media sites, such as Facebook, for competitions adds another layer of rules that promoters need to understand.

Facebook has its own Promotions Guidelines (last revised 11 May 2011) setting out how Facebook functionality may be used in competitions (whether involving skill or chance).

For example, the use of Facebook functionality requiring a “like” as registration for competition entry or as a voting mechanism is a contravention of the Facebook Promotions Guidelines.

Whilst promoters can use liking a Page as a competition precondition, conditioning registration or entry upon the user liking a Wall post, or commenting or uploading a photo on a Wall is not permitted. There has to be a separate entry into a competition.

Business (or trade) promotions are designed to encourage consumers to visit a site or buy or raise awareness of a particular product or service. If winners are determined wholly or partly by chance (as opposed to skill) the competition is also subject to the various states’ lotteries or art unions laws. In some states permits are required.