A new year is always a good time to get up-to-speed on the latest legal rulings around digital marketing.
We had a chat with Allison Rickard from Gadens about what to keep in mind when running this type of campaign.
SMK: Can you explain what a Refer-A-Friend promo is?
Allison Rickard: A refer-a-friend promotion is where consumers are encouraged to share details of a promotion with their friends, with an aim to having their friends participate in the promotion. Sometimes, a promoter may incentivise referrers who share with their friends.
SMK: Why did Gadens create this infographic?
AR: We receive a lot of questions from clients regarding refer-a-friend promotions – how to conduct them, what are the legal issues, what are the risks, etc.
The Spam Act regulator (the ACMA) has sometimes intervened when companies have run refer-a-friend promotions in the wrong way.
SMK: What should marketers be aware of before running a Refer-A-Friend promo?
AR: The primary issue is to ensure that the “friends” have provided consent in relation to receiving details about the promotion.
SMK: Is there anything else, from a legal standpoint, marketers should be aware of when running social campaigns?
AR: It’s important that the referrer (the entrant in the promotion) is personally involved in the sharing, e.g. writing the message to their friend; pressing the SEND button; the message coming from their email account, etc. Also, Facebook and Instagram have specific rules to consider when encouraging entrants to share or to tag others.