Browse topics

  • Governing law
    NameLaw or Code?
    Decree of the President of the Republic of 26 October 2001 No. 430 (the 'DPR') Law
    Bulletin Circular of the Ministry of Productive Activities (now Ministry of Economic Development) 28 March 2002, No. 1. Law

    With regard to the advertisement of the prize promotions:

    NameLaw or Code?
    Legislative Decree of 6 September 2005 No. 206 (the 'Consumer Code') Code
    Legislative Decree 2 August 2007 No. 145 (Misleading Advertising) Law
    Legislative Decree 2 August 2007 No. 146 (Commercial practices) Law
    Commercial Communication Code of the Advertisement Self-Regulatory Authority (the 'IAP Code') Code

    With regard to the processing of personal data:

    NameLaw or Code?
    Legislative Decree of 30 June 2003 No. 130 (The 'Privacy Code') with regard to the processing of personal data Code

    Last modified 10 Feb 2017

  • Extra-territoriality

    The DPR applies to prize promotions aimed at sponsoring the knowledge of the promoter's products and services within the Italian territory, both in the case of promotions directed to consumers, and in the case of promotions addressed to professionals or employees. Provided that a prize promotion is not addressed to Italy, national regulators would not apply and enforce the DPR against entities operating abroad. However, the assessment on whether a promotion can be considered to be addressed to Italy shall be evaluated on a case by case basis.

    Should the prize promotion be addressed to Italy, the DPR would apply. In such a scenario, a promoter established outside of the Italian territory would be required by law to appoint a fiscal representative in Italy in order to comply with all the formalities as per the DPR. In such case, the national regulator would be entitled to apply / enforce the rules against the foreign promoter through the representative located in Italy.

    Last modified 10 Feb 2017

  • Skills competitions

    Yes, but ensure:

    • Participants are not required to pay any contribution.

      'Payment' is interpreted to mean any kind of contribution/entry fee save for the price for the purchase of the promoted product/service

      and

    • The stringent formalities required by the DPR are complied with.

      Unless a promotion falls under one of the exceptions provided by the DPR, it is not possible to run multi-jurisdictional promotions; they need to be addressed only to people located in Italy and any activity, including the server, used for the promotion, must be located in Italy.

    The exceptions provided by the DPR include:

    • Promotions aimed at spreading artistic or scientific works where the prize is due as a remuneration for the work done

    • Promotions run by TV channels where the prizes are offered directly to the audience watching the show, unless the operation intends to promote products belonging to enterprises other than TV channels

    • Promotions where the prize consists of:

      • Discounts on the same products/services (or products/services belonging to the 'same family') as those purchased on a non-discount basis, or

      • A discount on different products, provided that such discount is not aimed at encouraging the purchase of the discounted product

    • Promotions under which the prizes, further to a purchase, consist of vouchers to be used in a subsequent purchase within the same point of sale or in any other point of sale of the same brand

    • Promotions where prizes have a very low value (such as gadgets, flags, calendars etc.)

    • Promotions where the prizes are granted to schools, hospitals or similar and have social or charity purposes

    In the above mentioned cases, the rules of the DPR do not apply. However, these exceptions are interpreted quite narrowly by the national regulator and therefore a case by case assessment is necessary.

    Last modified 10 Feb 2017

  • Prize draws

    Same restrictions that apply for skills competitions (see Skill competitions section) also apply to prize draws (both called Concorsi a premio).

    Last modified 10 Feb 2017

  • Selection of winners

    For Skills Competitions and Prize Draws, the winner must be selected either in the presence of an Italian Notary Public or an Officer of the Chamber of Commerce. In the case where the selection of winners is undertaken electronically, the results generated shall be certified by an expert.

    The Italian Notary Public or the Officer of the Chamber of Commerce present to the Skill Competition and Prize Draws shall draft the official minutes of assignment of the prizes and of closure of the promotion once the prizes are delivered to the winners. Prize winners should receive their prizes within 180 days of the closure of the promotion.

    Last modified 10 Feb 2017

  • Judges

    No, there are no particular requirements in relation to the judges or judging for skills competitions. However it is highly advisable for the terms and conditions of the competition to be as clear as possible, providing a clear overview of both the criteria for participation in the promotion and the mechanic of the judging process.

    Last modified 10 Feb 2017

  • Prizes

    A definition of prize can be inferred from the DPR, which states that prize can be goods, services, discounts, and shall have economic value. Cash prizes cannot be offered, but discounts and golden coins can be awarded.

    With regard to prizes, the DPR also requires the promoter to clearly indicate to the participants in the skill competition / prize promotion the value of the prize.

    Last modified 10 Feb 2017

  • Registration requirements and fees

    Registration Requirements

    The terms and conditions must be filed with the Ministry of Economic Development.

    Fees/Taxes payable

    In case of Skills Competitions and Prize Draws arranged by entities established outside the Italian territory, it will be necessary to appoint a so called 'fiscal representative' (ie either a person or entity resident in Italy) for tax purposes.

    Organizers must post a guarantee equal to 100% of the value of prizes offered.

    Organizers cannot deduct VAT on the prizes of promotions and shall pay a tax equal to 25% of the value of the prizes awarded.

    Last modified 10 Feb 2017

  • Other local requirements

    Terms and conditions must contain all the information required by the DPR.

    The organizer shall also post a bank guarantee (with an expiration of at least 1 year from the conclusion of the prize draw) equal to the whole value of the prizes to be awarded to the benefit of the Ministry of Economic Development.

    Both documents, as mentioned in the Timing section, must be filed with the Italian Ministry of the Economic Development.

    It is worth noting that very stringent formalities need to be adopted prior to and during the course of both skills competitions and prize draws.

    Last modified 10 Feb 2017

  • Timing

    The terms and conditions and the bank guarantee equal to the aggregate value of the prizes shall be filed with the Ministry of Economic Development at least 15 days prior to the commencement of the Skills Competition/Prize Draw through a web based functionality.

    Last modified 10 Feb 2017

  • Translations

    Terms and conditions must be provided to participants in Italian.

    Last modified 10 Feb 2017

  • Penalties for non-compliance

    In the event of late delivery of the documentation to the Ministry of Economic Development promoters are subject to fines of between € 2.065,83 up to € 10.329,14.

    In case of performance of prize promotions according to a mechanic different from the one outlined in the terms and conditions or notified to the Ministry of the Economic Development, fines of between € 1,032.91 and € 5,164.57 are applicable.

    In the event of promotions contravening the requirements of the DPR, the applicable sanctions shall be between € 1,032.91 and € 2,582.28. This sanction is doubled if the prize promotion is carried out after the prohibition issued by the authorities. Also, if the promotion is qualified as illegal gambling, fines of between €50,000.00 up to €500,000.00 are applicable.

    Last modified 10 Feb 2017

  • Restrictiveness of regulations

    The DPR provisions are quite detailed and restrictive. More in particular it is important to point out that international / multi-jurisdictional promotions and competitions are not generally allowed under Italian law (see Skill competitions section).

    Last modified 10 Feb 2017

  • Regularity of sanctions

    Fines are frequently imposed if reported by individuals through the dedicated hot line.

    Last modified 10 Feb 2017

  • Key contacts
    Giangiacomo Olivi
    Giangiacomo Olivi
    Partner DLA Piper Studio Legale Tributario Associato [email protected] T +39 02 80 618 515 View bio
    Giulio Coraggio
    Giulio Coraggio
    Partner DLA Piper Studio Legale Tributario Associato [email protected] T +39 02 80 618 619 View bio

Governing law

What are the applicable governing laws or codes for prize promotions?

Italy

Italy

NameLaw or Code?
Decree of the President of the Republic of 26 October 2001 No. 430 (the 'DPR') Law
Bulletin Circular of the Ministry of Productive Activities (now Ministry of Economic Development) 28 March 2002, No. 1. Law

With regard to the advertisement of the prize promotions:

NameLaw or Code?
Legislative Decree of 6 September 2005 No. 206 (the 'Consumer Code') Code
Legislative Decree 2 August 2007 No. 145 (Misleading Advertising) Law
Legislative Decree 2 August 2007 No. 146 (Commercial practices) Law
Commercial Communication Code of the Advertisement Self-Regulatory Authority (the 'IAP Code') Code

With regard to the processing of personal data:

NameLaw or Code?
Legislative Decree of 30 June 2003 No. 130 (The 'Privacy Code') with regard to the processing of personal data Code