DistantNews
Support us
🇦🇺 Australia /Crime & Justice

Australian rewards club banned over 'misleading conduct'

From ABC Australia · () English

Translated from English, summarized and contextualized by DistantNews.

At a glance

News Named sources Outcome reported
  • RS Rewards, an Australian rewards club, has been banned from running gaming activities in New South Wales for 18 months.
  • The company is accused of persistent breaches of the law, including accepting payments for entries and running prohibited competitions, despite losing its license.
  • NSW Fair Trading stated the company lacks compliance systems and engages in ongoing misleading conduct, aiming to protect consumers.

RS Rewards, one of Australia's largest "rewards clubs," faces an 18-month ban on all gaming activities in New South Wales. The company, which claims to have distributed over $10 million in prizes, operates by charging a monthly subscription for access to prize draws and other benefits.

NSW Fair Trading is satisfied that RS Rewards broke the law on these occasions.

— NSW Fair TradingThe department's statement to ABC News regarding RS Rewards' alleged breaches.

NSW Fair Trading initiated an investigation, leading to accusations of "persistent breaches" of the law. The company's license to run trade promotions was canceled in March. However, the department alleges RS Rewards continued to operate gaming activities in the state, citing numerous alleged violations.

"NSW Fair Trading is satisfied that RS Rewards broke the law on these occasions," a department spokesperson told ABC News. Despite RS Rewards adding a disclaimer that NSW residents cannot win major prizes, social media advertisements as recently as mid-June continued to promote draws to customers in the state. The company declined to comment.

does not have systems or compliance in place to follow the law and is unlikely to introduce them.

— NSW Fair TradingThe department's assessment of RS Rewards' compliance capabilities.

The rewards club industry, worth hundreds of millions of dollars, operates on the fringe of regulations, using community gaming laws for "trade promotions." NSW Fair Trading claims RS Rewards accepted payments for entries on multiple occasions and ran a roulette-style competition. The department stated the company "does not have systems or compliance in place to follow the law and is unlikely to introduce them." It further accused the company of "ongoing and misleading conduct."

ongoing and misleading conduct.

— NSW Fair TradingThe department's characterization of RS Rewards' business practices.

RS Rewards is prohibited from holding a license until December 2027 and faces a $5,500 penalty for non-compliance. Recent promotions included a Toyota Land Cruiser and caravan worth $200,000, and earlier this year, a luxury home valued at $2 million. "Where we identify potential breaches, we will act to protect consumers and maintain confidence in the integrity of promotion activities," said NSW Fair Trading commissioner Natasha Mann. Minister Anoulack Chanthivong added, "We will not tolerate any attempts to manipulate or deceive the hard-working people of NSW."

Where we identify potential breaches, we will act to protect consumers and maintain confidence in the integrity of promotion activities.

— Natasha MannNSW Fair Trading commissioner on the department's enforcement actions.
DistantNews Editorial

Originally published by ABC Australia in English. Translated, summarized, and contextualized by our editorial team with added local perspective. Read our editorial standards.

More Stories

From Our Blog