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 961/2017 and Resolution 915/2017 (of the Secretariat of Commerce modified the regulations of the conditions for those who organizse or promote contests, draws and sweepstakes with the aim of simplifying certain formalities)	Law

  Note: Prize promotions regulations in Argentina are the responsibility of each province. Argentina is subdivided into twenty-three provinces (provincias) and one autonomous city, the City of Buenos Aires.  Even though the provinces and the City of Buenos Aires exist under a federal system, they have their own constitutions, and local regulations. Organisers/sponsors must be aware of the applicable legislation for the provinces included within the territory.

  Last modified 8 Jan 2019

• Extra-territoriality

  Yes. Even when a chance-based game or skill-based contest is solely online and no promotion takes place in Argentina, if it is open to Argentinean residents, it will be subject to the laws of our countrArgentinay. As a consequence, national regulators might enforce rules against organiszers/companies operating abroad.

  Last modified 8 Jan 2019

• 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;

  • No element of chance should be used to determine the winner of the promotion;

  • The Rules are available in Spanish; and

  • You disclose information regarding prizes, territorial scope and participation requirements.

  Last modified 8 Jan 2019

• 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.

  Last modified 8 Jan 2019

• 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 names of the winners shall be published within ten (10) days, counted from the end of the promotion, by the same media used to promote the contest/promotion.

  The terms and conditions should indicate date and place where the prizes will be delivered.

  Last modified 8 Jan 2019

• Judges

  There are no legal requirements in relation to judges and judging in skill competitions. However, the judging criteria should be clearly stated within the Rules and it´s advisable to include the list of judges.

  Last modified 8 Jan 2019

• 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 8 Jan 2019

• Registration requirements and fees

  Note that in February 2018, the government of Argentina dissolved the National Lottery (LNSE). As a result, at least for now, Argentina no longer requires sweepstakes and contests to be registered. Prior to the dissolution, only promotions/contests in which the winners were totally or partially determined by chance – involving prizes greater than  6,666 Pesos (approx. US$148) – needed to be registered with LNSE and had to meet all the applicable requirements.

  With regard to skill-based contests, they do not require registration. However, the Official Rules must conform to local law. 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 8 Jan 2019

• 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.

  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.

  In such respect, Organiszers must comply with the requirements as established by Decree 961/2017 and Resolution 915/2017 of the Secretariat of Commerce.

  Last modified 8 Jan 2019

• Timing

  For chance-based promotions, time is required to request the permit from the Provinces that regulate contests/promotions at a local level. Time and costs involved may vary depending on the Province.

  Note that Provinces regulating promotions/sweepstakes at a local level can be excluded in order to avoid compliance with local regulations.

  Last modified 8 Jan 2019

• Translations

  Yes, the terms and conditions must be provided in Spanish.

  Last modified 8 Jan 2019

• Penalties for non-compliance

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

  • Fines from AR$500 (approximately US$11) to AR$ 5,000,000 (approx. US$111.000);
    
    
  • 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 8 Jan 2019

• Restrictiveness of regulations

  Due to the recent dissolution of the National Lottery there are only a few restrictions on prize promotions in Argentine national regulations. However, as previously mentioned, some provinces like Mendoza, Córdoba, Salta, Neuquén and Tierra del Fuego have their own local regulations. In addition, 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 8 Jan 2019

• 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 8 Jan 2019

• 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