It needs to be turned on in the individual game first. You can check by going into settings and the saves menu. There will be streetpass data there. Each game that has Streetpass on will have an icon. Then make sure wireless is active (for WiFi or local multiplayer) and you'll see a green streetpass logo in the top left. Don't worry if it says online in blue it will still work.
Then you can just shut the lid or press the power button and then shut the lid.
Streetpass works within most 3ds games, on the menu or in sleep.
Post the game up if your stuck on how to activate the particular game.
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Topic: Streetpass
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