Do national regulators enforce rules against entities operating abroad?
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 internal department named Secretariat for Fiscal, Energy and Lottery Accompaniment ("SEFEL").
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. For that purpose, prize promotions can only be organized by companies duly registered in Brazil with a valid Corporate Taxpayer Identification Number (CNPJ/MF), which means that foreign companies must run prize promotions through their Brazilian subsidiary or in partnership with a Brazilian company that is in compliance with said requirements.
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.