Browse topics

• Governing law

  Name	Law or Code?
  The Civil and Commercial Code of the Argentine Republic ('CC Code')	Code
  The Commercial Loyalty Law (Law number 22,802 as amended)	Law
  Customers' Protection Law (Law number 24,240 as amended)	Law
  Personal Data Protection Law (Law number 25,326 as amended)	Law
  Decree 588/1998	Decree
  Federal Lottery Resolution 17/2011	Resolution

  Note: Prize promotions regulations in Argentina are the responsibility of each province. In the Autonomous City of Buenos Aires, Law number 538 regulates gambling games and the deployment of mass media (graphic, TV, radio).

  Last modified 10 Feb 2017

• Extra-territoriality

  In principle, if a promotion is operated purely online from outside of Argentina and the prizes are awarded outside of Argentina, the national regulators will not apply the local Argentine rules. Such promotion would be governed by the foreign jurisdiction's regulations.

  According to the Civil and Commercial Code, in contracts concluded outside commercial establishments, long distance, and using electronic media or similar, the place of performance is considered to be the place in which the consumer received or should have received the performance of the contractual obligations. That place sets the applicable jurisdiction for any conflict derived from the contract. Any provision extending jurisdiction is ignored.

  Last modified 10 Feb 2017

• Skills competitions

  Yes, but ensure that:

  • The purchase of a product or service is not a requirement in order to be able to participate in the promotion; the elements required to enable a person to participate should be made available for free to anybody willing to participate, and
    
    
  • No element of chance should be used to determine the winner of the promotion

  Last modified 10 Feb 2017

• Prize draws

  Yes, but ensure that:

  • The purchase of a product or service is not a requirement in order to be able to participate in the promotion; the elements needed to enable a person to participate must be made available for free to anybody willing to participate
    
    
  • Prior authorization from the Federal Lottery Agency (and in some cases by the Provincial entities regulating chance games) needs to be obtained when the prize exceeds AR$ 6,666 (approximately USD$425) in value

  Please note that awards based on answering general culture questions do fall within this category under Decree 588/1998.

  Last modified 10 Feb 2017

• Selection of winners

  The terms and conditions of the promotion must be made available to the public and the process through which the winners shall be determined needs to be clearly established, including dates and place where the process will take place. It is suggested that the process be supervised by a Notary Public.

  If the awards are to be determined by chance, the mathematic adjudication used to determine the winner needs to be provided; if this is not possible an approximate estimation of it needs to be provided.

  The terms and conditions should indicate date and place where the prizes will be delivered and winners should be notified within 10 days of the prizes being awarded.

  Last modified 10 Feb 2017

• Judges

  There are no legal requirements in relation to judges and judging in skill competitions.

  Last modified 10 Feb 2017

• Prizes

  Prizes awarded must be as described in their marketing communications, or reasonably equivalent to the description.

  No forbidden and/or illegal goods should be awarded as prizes.

  Last modified 10 Feb 2017

• Registration requirements and fees

  Promotions where the winner is selected either directly or indirectly by chance, and where the prize amount exceeds AR$ 6,666 (approximately USD$425), need the prior approval of the Federal Lottery Agency (and in some cases of the Provincial entities regulating chance games). The entity running the promotion needs to obtain a 1 year permit plus an individual permit for each promotion. The fees for an individual permit amount to AR$ 4,000 (approximately USD$255) according to resolution 17/2011.

  When a prize is awarded to a winner selected by chance a 31% special tax is levied. If the prize is cash, the entity awarding it must withhold and pay for the tax. If the prizes are goods the beneficiary must provide the entity awarding the prize the amount of money requested to pay for the special tax. Specific provincial taxes may apply in different jurisdictions.

  Last modified 10 Feb 2017

• Other local requirements

  Promoters must provide certain and detailed information in relation to the prize promotion, including the essential characteristics of the prizes offered, and any other relevant terms.

  The information shall always remain freely available for the participants and in sufficient detail to enable a participant to understand the promotion.

  Conditions expressed in advertisements, brochures, circular letters or any other media are considered to be included in the contract concluded with the consumer, as binding terms.

  Last modified 10 Feb 2017

• Timing

  For chance based promotions, time is required to request the permit from the Federal Lottery Agency (and the Provincial one, if applicable). Permits are usually granted within 3 months of a request being made.

  Those who are authorized, and have previously been authorized to conduct each prize promotion, will require an express authorization from the National Lottery. This express authorization must be obtained at least 5 days prior to publicizing the prize promotion and/or at the beginning of the promotion, whichever occurs first.

  The period in which the prize must be provided must not exceed 30 days, calculated from the date the prize winner is determined, except when the prize is registrable property or when it must be delivered by a third party, according to the conditions of the promotion, in which case the term will extend to 60 days.

  Last modified 10 Feb 2017

• Translations

  Yes, the terms and conditions must be in Spanish.

  Last modified 10 Feb 2017

• Penalties for non-compliance

  According to the Commercial Loyalty Law, the penalties for non-compliance are the following:

  • Fines from AR$500 (approximately USD$31) to AR$ 5,000,000 (approximately USD$319,000)
    
    
  • Suspension for up to 5 years from the providers registries that allow promoters to conclude contracts with the State
    
    
  • Loss of concessions, tax or special credit benefits
    
    
  • Closure of the facility for up to 30 days

  According to the severity of the breach, and if it is convenient, publication of a notice of the penalty in the same media may occur.

  In case of fraud, criminal actions may be initiated.

  Last modified 10 Feb 2017

• Restrictiveness of regulations

  There are only a few restrictions on prize promotions in the Argentine regulation. It must be noted that prior to the launch of the promotion, an annual authorization must be obtained from the National Lottery, and forbidden acts under the Competence Defense Law must be avoided. Advertisements that contain false indications, lead or could lead to mistake and/or are abusive, discriminatory, or lead the consumer to behave in a dangerous or harmful way, must be avoided as well.

  Last modified 10 Feb 2017

• Regularity of sanctions

  Fines and prison sentences are rarely imposed.

  Generally, in cases of breach, a complaint is submitted to the Consumer's Defense Office, where a monetary sanction can be applied to the non-compliant entity, and it can also be requested that the misleading advertisement be deleted.

  Last modified 10 Feb 2017

• Key contacts
  

  Ignacio J. Randle

  Partner Estudio Randle [email protected] T +54 11 5252 0700

  

  Alejandro M. Massot

  Partner Estudio Randle [email protected] T +54 11 5252 0700