Browse topics

• Governing law

  Name	Law or Code?
  Federal Law No. 5.768, of December 20, 1971 ('First General Regulation on Promotions')	Law
  Decree No. 70.951/72, of August 9, 1972 ('Decree 70.951') (provides specific regulations on Promotions)	Law
  Ordinance MF No. 41/2008, of February 19, 2008 ('Ordinance 41') Updated general regulation of promotions	Law
  Ordinance MF No. 422/2013 (related exclusively to Cultural Promotions)	Law

  Last modified 10 Feb 2017

• Extra-territoriality

  Yes. The Brazilian laws/rules are considered to apply to prize promotions in Brazil, including promotions operated purely online.

  Prize promotions in Brazil require prior approval from the Ministry of Treasury, through its national regulator named Caixa Economica Federal (Caixa).

  Although the laws are silent regarding prize promotions organized by entities operated abroad, the First General Regulation on Promotions set forth that promoter entities must perform commercial, industrial, service and/ or real estate activities, as well as being in compliance with all tax payment and social security obligations. The only exceptions to the requirement for approval occurs in case of exclusively cultural promotions, in which no marketing purpose is involved, and prize promotions organized by public entities.

  The distribution of the prize may be based on three different formats of prize promotions: Prize Draws (Sorteio), Coupons (Vale-Brinde) or Contests (Concurso).

  Finally, with respect to language, the law is very protective towards consumers, and it is necessary to offer all information and content in Portuguese.

  Last modified 10 Feb 2017

• Skills competitions

  Yes.

  For the contest (Concurso) form of promotion, a contest occurs through intelligence tests, selection of predictions, calculations, or similar competitions of any nature. Caixa requires that the conditions of promotions must apply uniformly, so as to guarantee equal treatment and opportunity for everyone interested in participating in the promotion. 

  Promoters may provide that entry is subject to the participant presenting or delivering a label, wrapping, or packaging and/ or satisfying any requirements, preconditions or stipulations required by the promoter, relating to the products or commercial activity of the promoter, provided that said material does not constitute a series of multiple labels/wrappers/ packaging (see Other local requirements). 

  Last modified 10 Feb 2017

• Prize draws

  Yes.

  For the prize promotion formats known as Prize Draws and Coupons, winning is connected to chance.

  Firstly, with respect to Prize Draws, assigned numbers must be issued and distributed concomitantly, randomly and equitably.

  As regards to the Coupons format of prize promotion, the method of winning is instantaneous, as it occurs by the winning coupon or prize being discovered inside the product or its packaging. This must be done in accordance with rules set forth by government agencies responsible for public health and control of weights and measures. In this case, the maximum value of the prize cannot exceed R$ 400.00 (approx. US$130).

  Last modified 10 Feb 2017

• Selection of winners

  Promoters must guarantee that the prize promotion is conducted and the distribution of the assigned participation numbers are made in a concomitant, random and equitable way.

  The authorized entity will be the one responsible for identifying and notifying the winners. In case the winner does not collect its prize in up to 180 days, its right will be forfeited and the promoter must pay a corresponding sum as income to the state.

  Last modified 10 Feb 2017

• Judges

  There is no provision in this regard under Brazilian Law.

  Last modified 10 Feb 2017

• Prizes

  Prizes must not:

  • Be related to or encourage gambling
    
    
  • Generate an immoderate profit for promoters
    
    
  • Impact negatively on the education of a child or adolescent
    
    
  • Involve coupons or any other thing that imitates or resembles the national currency

  The distribution of cash prizes, and conversion of prizes to cash is prohibited.

  Last modified 10 Feb 2017

• Registration requirements and fees

  An Authorization Certificate permit must be obtained from Caixa.

  The fee to apply for this Authorization will depend on the prize total value: 

  Prize Value	Fee
  Up to R$ 1,000.00 (Up to approx. US$ 320)	R$ 27 (US$ 9)
  From R$ 1,000.01 to R$ 5.000.00 (From approx. US$ 320 to US$ 1,600)	R$ 133 (US$ 42)
  From R$ 5.000,01 to R$ 10.000.00 (From approx. US$ 1,600 to US$ 3,200)	R$ 267 (US$ 85)
  From R$ 10,000.01 to R$ 50.000.00 (From approx. US$ 3,200 to US$ 16,000)	R$ 1,333 (US$ 425)
  From R$ 50,000.01 to R$ 100,000.00 (From approx. US$ 16,000 to US$ 32,000)	R$ 3,333 (US$ 1,100)
  From R$ 100,000.01 to R$ 500,000.00 (From approx. US$ 32,000 to US$ 160,000)	R$ 10,667 (US$ 3,400)
  From R$ 500,000.01 to R$ 1,667,000.00 (From approx. US$ 160,000 to US$ 534,000)	R$ 33,333 (US$ 10,600)
  Above R$ 1,667,000.01 (Above approx. US$ 534,000)	R$ 66,667 (US$ 21,300)

  Note: Fees as at 18 November 2016 and subject to change.

  Last modified 10 Feb 2017

• Other local requirements

  The maximum value of a prize will be fixed based on the operating income of the promoter or the nature of its economic activity, so as not to distort the market.

  The Authorization certificate number must be included in all promotional material.

  The prize promotion must not allow the promoter(s) to use the promotion authorization to exploit the promotion as a source of income.

  Promoters of prize promotions must not create an exaggerated expectation of obtaining prizes.

  The award of a prize cannot be conditional on the participant collecting a series of product-related items (eg cards, stickers, objects, labels, packaging, wrappers).

  The distribution of prizes must not be linked to the results of the Sports Lottery.

  Promoters must ensure equal treatment for all competitors.

  Last modified 10 Feb 2017

• Timing

  Caixa demands that all requests for Authorizations must be filed within the minimum prior term of 40 days before the initial date of the Promotion and/or its marketing campaign.

  Last modified 10 Feb 2017

• Translations

  All documents that are mandatory to request the Authorization Certificate must be presented in Portuguese, as well as all information disclosed to consumers/participants.

  Last modified 10 Feb 2017

• Penalties for non-compliance

  The main situations where Administrative Proceedings may be initiated and sanctions may be imposed are:

  • Promoting free distribution of prizes without prior authorization of Caixa
    
    
  • Non-compliance with the approved promotions terms and conditions
    
    
  • Failure to deliver an accountability report to Caixa, after the end of the promotion

  In those scenarios, the Brazilian legislation provides for the possibility of the following penalties:

  • Cancellation of the authorization
    
    
  • Prohibition of free distribution of prizes for a period of up to two years
    
    
  • Fine up to 100% of the total value of the prizes
    
    
  • Fine of 10 to 40 times the highest minimum wage in force in Brazil (this can be doubled in the case of recurrence)

  Such penalties may be applied independently or together, and may be combined with the suspension/cancellation of the Authorization Certificate.

  Last modified 10 Feb 2017

• Restrictiveness of regulations

  Not very restrictive. While authorization is required, Caixa is always aiming to approve promotions and work alongside promoters in order to find a better way to enable the promotion to be run.

  In view of that, it is not likely that a prize promotion mechanic will be refused altogether.

  Last modified 10 Feb 2017

• Regularity of sanctions

  Fines are imposed, however not very often. There are no provisions for prison sentences.

  Last modified 10 Feb 2017

• Key contacts
  

  Paula Mena Barreto

  Partner Campos Mello Advogados [email protected] T +55 21 3262 3028

  

  Manoela Quintas Esteves

  Associate Campos Mello Advogados [email protected] T +55 21 3262 3042