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
    Ignacio J. Randle
    Partner Estudio Randle [email protected] T +54 11 5252 0700
    Alejandro M. Massot
    Alejandro M. Massot
    Partner Estudio Randle [email protected] T +54 11 5252 0700

Other local requirements

Are there any other key local requirements?

Argentina

Argentina

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.

Australia

Australia

There are slightly different requirements in different States and Territories. We have considered these different requirements for each State and Territory and prepared below a high watermark list of the requirements. There are also a small number of requirements which are specific to certain States and Territories and these follow at the end of the common high watermark requirements. Any advertising material and/or lottery rules should include the following:

  • The permit number;

  • The conditions of entry (including the minimum age of the participants);

  • The closing date and time for the receipt of entries in the lottery;

  • The place, date and time of the lottery draw;

  • How prizes will be awarded;

  • The method for claiming prizes (including any requirement for entrants to be present at the draw);

  • How prize-winners will be notified;

  • How the results of the lottery will be published;

  • The promoter’s name, address and telephone number; and

  • Details of the prizes and their value (including conditions, if any, relating to receiving, accepting or using the prizes).

All advertisements of a major trade promotion lottery on television, radio or at the cinema must contain the following information:

  • The permit number;

  • How a person may enter the lottery;

  • The nature and value of the prizes to be won;

  • How and where to get a copy of the full terms and conditions of the lottery; and

  • For the majority of states, no advertising of a trade promotion can commence until a permit/approval has been granted.

For multiple lottery permits, the types of contests, promotions, prize giveaways, etc. that are planned or intended to be conducted under the authority of the permit should be included.

Where entry is made into a promotion by telephone, SMS or MMS, the cost to the caller must not exceed A$0.55 (approx. US$0.38) (including GST) and the cost should be included on the promotional material.

Keep records in relation to finances, entries and prizes for three years.

Northern Territory

Information that must be included in the promotional material:

  • If the promoter advertises, gives information or issues publicity about the lottery before a permit is granted, the promoter must state in the information or publicity that the lottery is subject to the grant of a permit and will not proceed if a permit is not granted.

Victoria

  • Ensure the lottery is conducted in a manner that is not offensive or contrary to the public interest.

  • Ensure prize winners are not required to incur any cost to accept a prize (other than a trivial cost).

  • Only substitute an advertised prize if the winner agrees in writing and the substituted prize is of the same or greater value than the original prize.

Western Australia

  • If entry is via the Internet, there must be no additional cost to the participant to register his/her name other than the cost paid by the participant to access the web site via the internet service provider.
Austria

Austria

For business-to-consumer promotions, supporting terms and conditions must be in German.

For business-to-business promotions the use of German language is recommended but not mandatory.

Belgium

Belgium

It is recommended that supporting terms and conditions appear in Dutch and French if the prize promotion targets consumers.

Significant conditions, or information which, if omitted, is likely to mislead, must be communicated before purchase or, if no purchase is necessary, before entry into the promotion. Examples of significant conditions include: restrictions on entry (eg age, geographical), how to participate, costs of participating, start and close dates, details of prizes (and restriction of prizes).

Note: Where there are space limitations e.g. Twitter/banner ads, you must communicate as much information as possible and direct the entrant to where all significant terms are stated.

A promoter's name and address must be stated unless it is obvious from the context.

The Code of Economic Law (which carries potential criminal liability for breach) specifically prohibits claiming to offer a prize without awarding it, and creating a false impression that a consumer has won a prize.

Brazil

Brazil

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 Authorisation certificate number must be included in all promotional material.

The prize promotion must not allow the promoter(s) to use the promotion authorisation 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, and wrappers).

The distribution of prizes must not be linked to the results of the Sports Lottery. Promoters must ensure equal treatment for all competitors.

Canada

Canada

As mentioned above, Canadian contest law generally requires a no-purchase entry option and correctly answering a skill testing question prior to being awarded a prize.

Canadian law also requires the following to be disclosed in all rules, advertisements, and point of purchase materials:

  • The conditions for entering the contest;

  • The prizes;

  • The method of awarding the prizes;

  • The number and approximate value of retail value of the prizes;

  • Whether any purchase is required;

  • Whether there is a skill-testing question;

  • The chances of winning;

  • The contest closing date;

  • The place where full contest rules may be obtained; and

  • Any other relevant information.

Canadian privacy law requires consent prior to collecting, using and disclosing personal information from any individual, including a contest entrant.

Canadian anti-spam laws require individuals and entities (including contest providers) to obtain consent before sending any commercial electronic messages to or from Canada (including to contest entrants), and to provide certain disclosures and unsubscribe mechanisms in those messages. This must be done in a particular way.

The age of majority in Canada is 18 in some provinces and 19 in others. Minors can participate in a contest with parental consent; however, in general, contracts signed by minors are unenforceable. Therefore, contest entries and prize waivers/releases should be signed by parents/guardians and should contain personal indemnities from the parents/guardians.

Chile

Chile

The form of participation (including its conditions), the time or term of the competition or sweepstake, the amount of prizes and the method and the period to claim them must be indicated in the terms and conditions of the competition or sweepstake. Promoters should properly publish the results, including the winners, of competitions or sweepstakes.

Any gambling not explicitly regulated is illegal and only authorized operators can directly exploit games of chance and develop games officially incorporated in the catalogue of games (Law of Casinos).

The lottery system is reserved to Polla Chilena and Lottery of Concepción, except for those lotteries run for charitable purposes.

According to Law N° 19,628, that currently regulates data protection in Chile, if any personal data of the participants, and especially winners, is used  for advertising, surveys, market research, product sales, promotional transactions or any other specific purpose, relevant wording must be included in the competition’s materials, so that the participants grant a prior written authorization for the use of said information (i.e. name, ID, images, age, etc).

China

China

  • Medical products cannot be promoted with prizes.

  • Promoters must not use un-qualified or low quality products as prizes, or compromise the after-sale services (if applicable).

  • The advertising and other marketing communications regarding the promotion must be real, legal, clear, easy to understand, as opposed to ambiguous or vague. Operators (as promoters) are not allowed to reserve ' their rights to interpret the advertising and other marketing communications. ''Personal data involved in prize promotions should be collected and processed in accordance with the Cyber Security Law and the Personal Information Security Specification. For example, the collection and use of personal data must be legitimate, rightful, and necessary. The promoter must publish the rules for collecting and using the personal data, and specify the purpose, means and scope of the personal data. Appropriate consents must be obtained from the data subjects before the personal data is collected, used, or shared.
Colombia

Colombia

To obtain an authorization from Coljuegos, a request must be presented at least 10 days before the beginning of the marketing campaign. The request must include the following information:

  • Legal identification of the individual from the company promoting the prize;

  • An invoice certifying the purchase of the good or service that constitutes the prize;

  • All technical and economic information regarding the prize that will be awarded;

  • A certificate stating that a performance bond equal to the value of the prize will be issued by the promoter;

  • A draft of the advertisement that will be used to promote the prize.

After paying the fees and issuing the performance bond, the authorization will be granted by Coljuegos for a term of up to a year.

When advertising the promotion through a visual medium, a stamp of authorization from Coljuegos will be needed. Whenever the promotion is to be made by radio or any other non-visual method, the advertisement must include a statement indicating that such promotion is authorized by Coljuegos.

Denmark

Denmark

The marketing of prize promotions is subject to quite strict rules. As such the terms and conditions for the prize promotions must generally be clear, unambiguous and easily accessible for the consumer. 

The consumer must receive all necessary significant information to be able to assess the value of the prize promotion.

The marketing materials for a prize competition must include the following information:

  1. Limitations based on age or geography;

  2. The value of the prize;

  3. The chances of winning, if such chances can be determined;

  4. How many prizes that are included in the competition;

  5. The selection process (i.e. how the winner is selected);

  6. The date on which the winner is selected;

  7. Where and when the name of the winner will be published;

  8. Conditions for delivery or pick up of the prize;

  9. The period of limitation. 
Note: When prize promotions are marketed towards kids and youths the requirements are intensified. Special attention must be put into ensuring that the kids and youths understand not only the terms and conditions of the prize promotion, but also that the prize promotion is part of the company's marketing.  

Prize promotions on social media are in general subject to the same conditions as mentioned above.

A consumer can only by contacted by phone, e-mail or text if the consumer has given his/her clear consent hereto. Promoters are allowed to use prize promotions to achieve such a consent. However, where this is an intention, the consumer must be clearly informed hereof before the consumer provides his/her contact information. Further the consumer must actively choose to give the consent (i.e. consent hidden in the term and conditions or the data policy is not allowed).

Note: Children cannot give consent to be contacted. Such consent can only be given by the child's parents.
Finland

Finland

Two types of prize promotions are generally allowed:

  • Prize competitions which do not require buying a lottery ticket or payment for participation; and

  • Prize competitions which require purchasing a specific product, but do not require payment for participation in the prize promotion (i.e. the price must be the same with or without the contest).

Prize promotions must always be linked to a product or service. The product or service should always be the main subject of marketing, not the prize competition itself.

The terms and conditions for participating in the prize promotion must be clear, unambiguous and easily accessible.

The marketing materials for a prize competition must include the following information:

  1. Who organizes the draw or competition;

  2. When the draw or competition begins and ends;

  3. What criteria are used in determining the winner in a competition based on knowledge or skills;

  4. The date on which the draw is held; and

  5. How winners will be informed about winning and receiving the prize.

The information referred to in points (1) – (5) must be present on all marketing materials which contain information on the prize competition. Special rules apply to, for example, television and online advertisements where the letter count is limited.

The provisions relating to prize promotions are interpreted strictly when marketing is targeted at persons under 18 years of age. In general, prize promotions which require the purchase of a product in order to participate are prohibited for adolescents less than 15 years of age.

France

France

No, although it is recommended to:

  • File the terms and conditions in the office of a court official, generally a bailiff (huissier de justice).

  • Obtain the express, opt-in acceptance of terms and conditions and all related documentation as a condition for entry or receiving a prize.

  • Include some of the terms and conditions governing the promotion in any advertising presenting the promotion. This extract of the full length terms and documents should include a short description of the prize and the conditions of participation in the promotion. The extract should also indicate where and how the full length of terms and conditions can be obtained by the participants.
Germany

Germany

In brief, the key requirements, or rather recommendations, for prize promotions addressed to the German market place can be summarized as follows:

Prize promotions should:

  • Not fall under the German gambling regulations (see Governing law section);

  • Be clearly identifiable as such;

  • Not create the false impression that the prize is already won, otherwise the consumer may have a valid claim under s.661a BGB;

  • Respect the winner's privacy, for instance by publishing their names only in case of explicit approval;

  • Limit the use of participant's data only for this particular purpose (except where the participants have explicitly consented to the data being used for further purposes, eg email newsletters);

  • Provide easily accessible terms and conditions, which, themselves, shall ensure clear and unambiguous consumer information concerning inter alia:

    • The name and address of the promoter;

    • Any qualifying requirements, including the category of persons entitled to take part or excluded;

    • How to participate, including possible costs of participating;

    • Details of each prize and its value; possible follow-up costs (eg costs for picking up a car);

    • Period of the promotion, especially the closing date;

    • How winners will be selected;

    • Where and when the names of the winners will be published;

    • If participation is conditional on the purchase of products/services or on the use of personal data for advertising issues, this must be stated (for purchase-required promotions directed to minors, please see below).
Note: If a purchase-required prize promotion is directed towards minors, make sure that (1) the value of the prize is in the usual range, in order not to exploit the lack of business experience of minors (please see Prizes section); and (2) the prize promotion is not linked to the use of personal data for advertising purposes.
Note: Significant conditions, or information which, if omitted, is likely to mislead, must be communicated before purchase, or, if no purchase is necessary, before entry into the promotion.
Note: Within the scope of s.6 para 1 no. 4 TMG the promoter may be obliged to fulfill further information requirements. Broadcasting rules pose further requirements (s.8a RStV) as well as telecommunication rules (TKG).
Note: In case of space limitations, eg twitter/ banner ads or TV spots, it is recommended to include as much information as possible and apart from that to point out where the full terms and conditions can be obtained.
Note: There are particular restrictions for prize promotions in regard to pharmaceuticals (s.7 and s.11 of the HWG).
Hong Kong

Hong Kong

The Licensing Authority may apply conditions to the license for the applicant to comply with. There are general conditions that must be met under the Trade Promotion Competition License or the Amusements With Prizes License, in addition to the specific prohibition on cash prizes.

Under a Trade Promotion Competition License, it is not permitted to charge a fee to enter the relevant promotion. However, the example application provided by the Licensing Authority indicates that participants can be required to purchase a product or a number of products for entry into the promotion, e.g. proof of purchase of 5 products will entitle the participant to 5 entries in a draw.

Under an Amusements With Prizes License, it is not permitted to charge more than $5 (approx. US$0.6) for any one chance to win a prize.

Under a Trade Promotion Competition License, all advertising for the competition must quote the relevant license number and the results of the competition must be published in a Chinese and English newspaper 10 days after the judging or drawing of the prize(s). The position remains the same for an instant-win game where prize winners are able to claim their prizes on the spot. A cutting of the newspaper article must be forwarded to the Licensing Authority for its records. The Trade Descriptions Ordinance prohibits false or misleading trade description of goods and services, or claims in advertisements.

Under a Trade Promotion Competition License, changes cannot be made to the promotion once it has commenced (including the cancellation or change to the promotion period). If a promotion has not commenced, minor changes can be made, subject to approval by the Licensing Authority. Making changes costs $155 (approx. US$20) and only one change can be made.

Personal data involved during the promotion should be collected, handled and destroyed in accordance with the Personal Data (Privacy) Ordinance. For example, personal data collected from participants should not be used for purposes other than the promotion or transferred to a third party unless the participant's consent is obtained, or unless an exception under the laws apply.

Moreover, entire Hong Kong Identity Card numbers or entire dates of birth (ie year, month and day) should not be collected unless absolutely necessary. The prize winner's name should not be announced together with his/her Hong Kong Identity Card number, even if altered. Also, the prize winner's telephone number should not be published in full.

Hungary

Hungary

The key requirements for prize promotions addressed to the Hungarian market can be summarized as follows:

Prize promotions should:

  • not fall under the Hungarian gambling regulations;

  • not be organized/advertised if advertising is prohibited or restricted (e.g. tobacco products, alcohol, firearms/weapons/ammunitions);

  • be clearly identifiable as such;

  • not create the false impression that the prize is already won, which would constitute as an unfair commercial practice;

  • respect the winner's privacy, for instance by publishing their names only in case of explicit consent;

  • limit the use of participant's data only for this particular purpose (except where the participants have explicitly consented to the data being used for further purposes, e.g. email newsletters);

  • provide easily accessible terms and conditions, which, themselves, shall ensure clear and unambiguous consumer information concerning inter alia:

    • the name and address of the organizer;

    • any qualifying requirements, including the category of persons entitled to take part or excluded;

    • how to participate, including possible costs of participating;

    • details of each prize and its value; possible follow-up costs (e.g. costs for picking up a car);

    • period of the promotion, especially the closing date;

    • how winners will be selected; and

    • where and when the names of the winners will be published.
India

India

  • Promoters must ensure that the participants are above 18 years of age. In case of minors (ie below 18 years), the legal guardian must also be a party to all agreements on behalf of the minor.

  • Further, based on the nature of the prize promotions and remittance of money in/out of India, there may be implications from the perspective of Indian foreign exchange laws which may be required to be examined on a case to case basis. A person resident in India is restricted from dealing in foreign exchange for the purpose of making remittance of lottery winnings, securing prize money/awards, purchase of tickets and/ or otherwise participating in lotteries and sweepstakes. These restrictions also apply to lottery-like schemes existing under different names such as money circulation schemes etc.

  • If the data collected by the promoter falls within the scope of 'sensitive personal information' (as defined below), the promoter should include specific and express consent of the participant for collecting such data and for onwards sharing (if so proposed).

  • As per the applicable data protection law in India, sensitive personal data or information includes personally identifiable information relating to:

    • Passwords;

    • Financial information such as bank account or credit card or debit card or other payment instrument details;

    • Physical, physiological and mental health condition;

    • Sexual orientation;

    • Medical records and history; and

    • Biometric information of a person.

  • In case the participant is required to purchase a certain product which entitles the participant to enter into a lucky draw in relation to that product, it should be ensured that:

    • The product indicates the date of closure of the offer;

    • All 'material conditions' are disclosed;

    • If there are any conditions that apply to the lucky draw, ensure that the words 'conditions apply' appear in bold and such conditions are made available to the participant on request;

    • If a prize is being offered by draw of lots for participants who purchase a particular product, ensure that the prize does not reflect an increase in the price of the product; and

    • The prize that is offered does not cause any loss or injury to the participant whether by eliminating or restricting competition or otherwise.

  • The Consumer Protection Bill, 2018 proposes permitting the conduct of certain prescribed contests, lotteries, games of chance or skill, in the context of promoting, directly or indirectly, the sale, use or supply of any product or any business interest. It is proposed that such contests, once prescribed under the relevant rules (that may be notified by the Central government), will be exempted from being classified as 'unfair trade practices'.

  • Persons carrying on activities for playing games of chance for cash or payments in kind are "reporting entities" under the Prevention of Money Laundering Act, 2002 (read with the Prevention of Money Laundering (Maintenance of Records) Rules, 2005), and are required to maintain records of all transactions including a record of all cash transactions of the value of more than Rs 1,000,000 (approx US$14,200) or its equivalent in foreign currency, all series of cash transactions connected to each other of individual value less than Rs 1,000,000 (approx US$14,200) or its equivalent in foreign currency where such series of transactions have taken place within a month, and the monthly aggregate exceeds an amount of Rs 1,000,000 (approx US$14,200) or its equivalent in foreign currency.

Ireland

Ireland

The other key legal requirements generally relate to obligations under Irish consumer law and data protection and privacy laws. The ASAI Code includes a number of requirements that are not mandated by Irish law. However, as mentioned in the Extra-territoriality section, it is considered best practice in Ireland to follow the ASAI Code.

Under the CPA it is a prohibited commercial practice to:

  • Operate, run or promote a competition or prize promotion without awarding the prizes described or reasonable equivalents; and

  • To make a representation or create an impression that a consumer has won or will win a prize or other equivalent benefit, if:

    • There is no prize or equivalent benefit; or

    • In claiming the prize, the consumer has to make a payment or incur a loss.

The ASAI Code provides that:

  • Complex rules should be avoided and promoters should not need to supplement conditions of entry with additional rules. If further rules cannot be avoided participants should be informed how to obtain them and in such an event, the rules should contain nothing that would have influenced a consumer against making a purchase or participating. Participants should always be able to retain or easily access entry instructions and rules.

  • The closing date should be clearly stated in each advertisement, on each entry form and on the outer surface of any relevant pack, wrapper or label. This date should not be changed unless circumstances outside the reasonable control of the promoters make it unavoidable.

  • When prize promotions are widely advertised, promoters should ensure that entry forms and any goods needed to establish proof of purchase are widely available.

  • The terms and conditions in which a promotion is presented should be clear, complete and easy for the consumer to understand. The following points should be clearly explained:

    • How to participate and conditions and costs;

    • Promoter's full name and business address in a form that can be retained or continually accessed by consumers;

    • Closing date for entry or the submission of claims for a prize should be prominently displayed;

    • Any proof or purchase requirements;

    • Any geographical or personal restrictions;

    • Any necessary permissions;

    • Any limits on the number of entries;

    • Any limit on the number of promotional products that an individual consumer or household may claim or win; and

    • Any other factor likely to influence consumers’ decisions or understanding about the promotion.
Note: Marketing communications that include a promotion and are significantly limited by time or space should include as much information about significant terms and conditions as practicable and should direct consumers clearly to an easily accessible alternative source (e.g. website) where all terms and conditions of the promotion are prominently stated.
Italy

Italy

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 at least 15 days prior the beginning of the prize promotion.

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.

Japan

Japan

Currently, gaming is generally banned in Japan with a few limited exceptions with respect to certain sports, for example, betting on horseracing, speedboat racing, bicycle racing or motorcycle racing. There are also a few government sanctioned lotteries and pachinko (a combination of a slot machine and vertical pinball machine) which are popularly accepted. Casino gaming (including online gaming) is strictly prohibited in Japan, although there have been recent political pushes toward legalization of casinos.

Mexico

Mexico

The entity or person doing a prize draw must include in the communication of the same (eg in the official rules) to potential entrants the following information (Nom 028):

  • Authorization number granted by the Ministry of Interior;

  • Number of entry tickets issued;

  • Total number of prizes;

  • Mechanism to obtain the entry ticket;

  • Mechanism to know the winner, place and date where the prize draw is going to occur;

  • Communication means and dates when the winner is going to be announced and the prize giving;

  • Term and place to collect the prize;

  • Contact numbers and schedules for general information and enquires.

The entity or person operating a promotion must include in the communication of the same (e.g. official rules) to potential entrants the following information (Nom 028):

  • Name and address of the promoter;

  • Goods or services subject to the promotion;

  • Incentive offered in the promotion;

  • Terms and conditions of the promotion;

  • Geographical coverage;

  • Establishments where the promotion is applicable (if any);

  • Restrictions (if any); and

  • Guarantees offered to such promotion.

Any amendment to the terms and conditions must be delivered by the same means of the initial offer. It is not advisable and we do not recommend changing the terms and conditions once the initial offer has been published. The authority responsible for the surveillance of the terms and conditions of promotions is Profeco.

Profeco has the authority to issue sanctions against individuals or entities that do not comply with the Consumer Law and it focuses its attention to misleading, wrongful, fraudulent, unlawful promotions or advertisements (i.e. prize draw publicity). Therefore, great care is advised in content selection for the advertising of any type of prize draw.

Netherlands

Netherlands

For prize draws:

  • The prize value (whether for one prize or several prizes combined) must not exceed €100,000 in value per year 

  • Maximum of one game of chance in relation to any product, service or organization per year, with a maximum of 20 drawings, i.e. a maximum of 20 occasions per year when winners can be selected which means that a maximum of 20 winners can be picked for the one game of chance.
    Note: Small games of chance with a maximum value of prize(s) of €4,500 (approx. US$5,000) can be organized as often as the promoter wishes.
  • The provider shall impose on minors that parental consent should be obtained; and

  • The provider shall ensure there is a complaints procedure and shall provide the address or phone number where complaints can be lodged.
New Zealand

New Zealand

If a prize promotion falls within the definition of gambling, it is critical that that the promotion fits within the definition of a 'sales promotion scheme' in the Gambling Act so that it is an authorized gambling activity for the purposes of the Gambling Act.

Note that the retail value of non-cash prizes must be disclosed to the customer prior to entry into the competition.

If a competition or promotion amounts to gambling but is not a 'sales promotion scheme', it is likely to be considered as either an illegal gambling activity, or another form of gambling where a license may be required.

The net proceeds of a gambling activity are required to be used for 'authorized purposes' (essentially, charitable purposes or purposes which benefit the community) so it is generally not feasible to obtain a license.

Under the Consumer Guarantees Act 1993, any good or service provided by the promoter of goods and services must be reasonably fit for purpose.
It is an offence under the Fair Trading Act to offer a prize having no intention to deliver it as offered. The Fair Trading Act also prohibits misleading and deceptive conduct and making false, misleading and unsubstantiated representations.

For any personal information collected in connection with a prize promotion or competition, the Privacy Act 1993 requires that entrants are aware of:

  • The fact that the information is being collected;

  • The purpose for which it is being collected;

  • The intended recipients of the information; and

  • The name and address of the agency that is collecting the information and the agency that will hold the information.
Nigeria

Nigeria

  • The following must be specified before or at the time of entry:

    • Geographical, personal or technological restrictions such as location, age or the need to have access to the Internet.

    • Any requirement to obtain permission to enter from an adult or employer.

    • If relevant, ownership of copyright in entries.

    • Any intention to use winners in post – event publicity.

  • Prize promotions and promotions addressed to children always need a closing date (some others do not e.g. competitions that refer to a special offer).

  • Advertisers announcing reader promotions on the front page or cover shall ensure that consumers know whether they will be expected to buy subsequent editions of the publication. Major conditions that might reasonably influence consumers significantly in their decision to buy the publication shall appear on the front page or cover.
Norway

Norway

Promoters must be careful with having terms and conditions that provide that contestants can be cold-called by the company or its partner, or that their details can be shared with other companies. Where this is an intention, it must be clearly stated and the marketing of the competition must not be misleading in this regard. There must also be specific consent provided for receiving such marketing communications.

Poland

Poland

The promoter is obliged to respect the terms of the prize promotion notified to the participants. These terms cannot be, generally, changed during the promotion.

The promoter’s name and address must be notified to the participants.

There are also some restrictions regarding prize promotions in other legal acts, e.g. it is forbidden to organize prize promotions conditional on the purchase of tobacco products.

Portugal

Portugal

All of the details of a prize competition must be disclosed in the respective Terms and Conditions and an indication of the prizes, their value and contact details of the promoter and all relevant dates of the promotion must be included. The procedural rules and regulations must be accessible for consultation, at all times during the promotion.

All promotional materials regarding the prize draw and the Terms and Conditions should have a specific reference to the authorization number granted by the General Secretary of Ministry of Internal Affairs.

General Advertising rules are fully applicable to prize draws and skill competitions which means that advertising must abide by all principles set out in the Advertising Code (Decree Law no 390/90, October, 23 as amended by Law 8/2011, April, 11). In particular, the advertising of the promotion must refer to all its main conditions and may not mislead the consumer.

Data Protection provisions are fully applicable to prize draws and skill competitions, which means that any marketing lists must comply with data protection laws and Regulations..

Romania

Romania

When organizing a prize promotion, the following rules must be complied with:

  • The adverts must mention:

    • The nature, the number and the commercial value of the prizes and that the competition rules are available free of charge to any applicant;

    • The competition rules must be authenticated by a public notary; and

    • Mention the obligation of the promoter to publicly present the name of the winners and their prizes.

Representatives from the National Consumer Protection Authority, Ministry of Economy, and Ministry of Internal Affairs may request a copy of the competition rules, as well as a copy of the advertising materials. Organizers must hand over the required documentation within 5 days of the request date.

Russia

Russia

In relation to lotteries the Law contains certain requirements. For example, there are requirements regarding mandatory state inspections of equipment used by organizers in the running of a lottery. Additionally, every operator of a lottery must order and undergo an annual mandatory audit of its activities in relation to accounting aspects.

Saudi Arabia

Saudi Arabia

There are a number of requirements and restrictions under the ACFR, and relevant authorities may also stipulate additional requirements that may apply as part of the granting of a license.

Singapore

Singapore

Apart from compliance with applicable gambling legislation as set out in the foregoing responses, there are generally no key local requirements for the operation of prize promotions per se. However, it would be prudent for organizations that run prize promotions to be aware of Singapore data protection laws which they are likely to be bound by. In this regard, such organizations must observe and comply with the requirements under the PDPA when collecting data for the purpose of administering and managing any prize draws, competitions, promotional offers and other marketing activities.

The PDPA governs the collection, use and disclosure of personal data by all private organizations. Promoters must:

  • Inform participants on the purposes for collection, use and disclosure of their personal data on or before collecting the personal data;

  • Ensure that consent has been obtained from participants before collecting, using or disclosure of the personal data; and

  • Keep personal data in their possession secure from unauthorized access, modification, disclosure, use, collection or copying (either in hardcopy or electronic form).

As a general rule, organizations may wish to note that they should avoid collecting, retaining or disclosing more personal data than is necessary to fulfil the relevant purpose. Further, it should be noted that due to the issuance of Advisory Guidelines on the PDPA for National Registration Identity Card ('NRIC') and Other National Identification Numbers by the Personal Data Protection Commission on 31 August 2018, organisations will be prohibited from collecting, using or disclosing NRIC numbers, or making copies of identity cards of their customers or potential customers, from 1 September 2019. Those that have collected NRIC numbers or other identity card numbers are encouraged to assess if they need to retain these numbers, and if not, are suggested to dispose of them responsibly and in compliance with the PDPA.  

Additionally, organizations operating prize promotions may also be bound by local consumer protection laws, such as the Unfair Contract Terms Act.

South Korea

South Korea

No requirements, other than those identified in other sections.

Spain

Spain

Supporting terms and conditions must appear in Spanish and must be available to the participants before entering the competition.

Filing the terms of the Competition with a Notary Public before the start date is advisable, although it is not required by law.

Sweden

Sweden

The promotion of prize promotions must comply with general marketing law requirements, such as being legal, decent, honest and truthful.

Prize promotions must be performed in accordance with the conditions originally set forth by the promoter. Also, the same conditions must apply to all participants and the assessment of the contributions must be impartial and reliable. It is not permissible to select the winner in an arbitrary manner.

Furthermore, it is important to provide sufficient information when organizing a competition. The following list is a compilation of the information that should be provided when organizing a promotional competition:

  • The promoters name, address and contact details.

  • All the terms and conditions associated with the promotion, including time limits and other restrictions or limitations, should be indicated in a clear and exhaustive manner.

  • A detailed and unambiguous description of the assignment, and how the winner is to be selected. The participant must be able to assess the nature and the objective of the competition.

  • All costs, fees and confirmation of whether or not there is a purchase requirement associated with the participation.

  • A clear and comprehensive description of the assessment and the decisive factors when choosing a winner. Also, if applicable, the composition of the judging panel.

  • Extensive information concerning the prizes, namely the number, value and sort. Also, one is required to provide information regarding whether or not the prizes may be exchanged for a cash substitute equal to its value.

  • When and how the results will be publicized and the winners will be contacted. Please note that it is not sufficient to only contact the winner(s) of a competition. Instead, the results should be made as publicly available as the competition itself.

  • Whether or not the winner may be liable to pay any taxes.

  • If the winner or winning contributions will be used in any other context; information concerning such use must be provided.

  • Finally, if personal data will be processed, one must provide the registered person with information regarding the processing and the registered person's rights. It may also be necessary to obtain consent from the participants.
Note: Where there are space limitations e.g. Twitter / banner ads, you must communicate as much information as possible and direct the entrant to where all significant terms are stated.
Thailand

Thailand

An applicant must meet certain eligibility requirements before they will be able to apply for a license, including being a permanent resident of Thailand.

In addition, the applicant must provide all details related to the prize promotion event, including objectives, method, rules, date, time and place, duration, prize/award, winner selection, announcement method of the winner, names and job positions of the witnesses and advertisement method.

When advertising the prize promotion event, the arranger must also ensure that it complies with the CPA-MR, i.e. the following must be included in the advertisement:

  • The license number;

  • Criteria, method and any conditions;

  • Date of commencement and ending of the event;

  • The type of prize/award and its value.

In addition, the arranger must ensure that it complies with other specific regulations. For example, the prize promotion event and related advertisement of drugs are not allowed under law and regulations issued by Ministry of Public Health.

Turkey

Turkey

According to an announcement of the GDNL, prize promotions must be declared/ announced through the official website of the entity running the promotion. In practice, the Directorate does not approve a draw if it is only announced through social media accounts.

Ukraine

Ukraine

Other key legal requirements for prize promotions are as follows:

  • Advertisements about the conduct of prize promotions and skill competitions must contain information regarding time periods, the place of the event, and indicate the competition organiser

  • Information regarding all changes in terms and conditions, places and competition time period should be presented in the same way as it was initially distributed

  • Other general requirements established by the law of Ukraine 'On Advertising' must be complied with (eg advertising of certain categories of goods, etc)
United Arab Emirates - Dubai

United Arab Emirates - Dubai

The applicant must have a valid commercial license in the Emirate of Dubai and have been carrying out its activities in Dubai under the license for more than one month.

It is not permitted to promote tobacco and cigarettes, drugs, alcohol, pork or spoiled or expired food.

The terms and conditions of the draw/competition must be in the Arabic language. The terms and conditions should include as much detail as possible, relevant dates and other requirements (for example, the requirement to produce a passport or other documentation in order to receive a prize).

The term of the campaign should not exceed two months. In some exceptional cases promotional campaigns may run for a maximum period of one calendar year where the fees are calculated by the type of campaign, with the condition of having one draw every two months in the case of campaigns involving draws.

The requirements to obtain a permit for promotional campaigns vary between Emirates. This note deals with the Emirate of Dubai only.

Particular rules may apply when the draw falls during one of the Dubai shopping festivals.

United Kingdom

United Kingdom

Promoters must conduct prize promotions fairly and efficiently, and must 'avoid causing unnecessary disappointment', e.g. by changing the terms (to be avoided if at all possible) or stopping the promotion.

Significant conditions, or information which, if omitted, is likely to mislead, must be included on all marketing communications regarding the promotion. Examples of significant conditions include: restrictions on entry (e.g. age, geographical), how to participate, costs of participating, start and close dates, proof of purchase requirements, details of prizes, IP assignment, any post-event publicity requirement.

Note: Where there are space limitations e.g. Twitter or banner ads, you must communicate as much information as possible and direct the entrant to where all significant terms are stated.

A promoter's name and address must be stated unless it is obvious from the context.

The CPRs (which carry potential criminal liability for breach) specifically prohibit claiming to offer a prize without awarding it, and creating a false impression that a consumer has won a prize.

Promoters should be mindful of the extensive obligations (and hugely significant sanctions- see Penalties for Non-Compliance section) now imposed by GDPR, which can impact on prize promotions in various ways, such as:

  • If a promoter wishes to use winners’ or entrants’ personal data (e.g. photographs) for publicity or other purposes beyond simply administering the promotion, it must carefully consider what lawful basis it can rely on under GDPR.  Consent may not be an appropriate basis unless it can be refused (GDPR requires "unbundled" consent so it cannot generally be a condition of entry); legitimate interests may be appropriate, but this requires an assessment to be undertaken of the competing interests;

  • GDPR-compliant data processing notices must be given to entrants;

  • It is not permitted to run a consumer-targeted prize promotion that requires as a condition of entry that the consumer agrees to receive electronic direct marketing from the promoter;

  • Particular care must be taken where child data is to be processed.
United States

United States

Overall Summary

Both state and federal law mandate certain disclosures that need to be made in connection with sweepstakes promotions and advertising. Generally speaking you must provide no purchase necessary disclosures, eligibility requirements, the method of entry, deadline dates (entry, prize claims etc.), the odds of winning, the prize description, and number of prizes and their value, and any special conditions. Social media sites such as Facebook and Instagram have certain additional disclosures that have to be made.

Selected States – Disclosure Requirements

California – Use of the word 'lucky' to describe an entry form or the use of simulated checks, currency, or items of value are prohibited unless they bear the words 'SPECIMEN-NON-NEGOTIABLE' clearly and conspicuously. Cal. Bus. & Prof. Code, § 17539.1(a)(11), (13).

Illinois – Prize offer must include the following clear and conspicuous disclosures:

  • The true name or names of the sponsor and the address of the sponsor's actual principal place of business;

  • The retail value of each prize the person receiving the notice has been selected to receive or may be eligible to receive;

  • A disclosure that no purchase is necessary to enter such written promotional offer;

  • A disclosure that a purchase will not improve the person's chances of winning with an entry;

  • A statement of the person's odds of receiving each prize identified in the notice;

  • Any requirement that the person pay the actual shipping or handling fees or any other charges to obtain or use a prize, including the nature and amount of the charges;

  • If receipt of the prize is subject to a restriction, a description of the restriction;

  • Any limitations on eligibility; and

  • If a sponsor represents that the person is a 'finalist', has been 'specially selected', is in 'first place', or is otherwise among a limited group of persons with an enhanced likelihood of receiving a prize, the written prize notice must contain a statement of the maximum number of persons in the group or purported group with this enhanced likelihood of receiving a prize. 815 ILCS 525/25.

New York – The sponsor shall cause to be posted in a conspicuous and prominent location in every retail establishment offering the opportunity to participate in such game or contest and published in all advertising copy used in connection therewith, a statement showing the minimum number and value of prizes available to be won over a stated period of time and stated geographic area, and the rules and regulations pertaining to such promotion or advertising scheme or plan. N.Y. Gen. Bus. Law §369-e.

Texas – A person using a drawing must clearly and conspicuously disclose the following:

  • A statement of the odds of winning each prize offered, expressed as a ratio in Arabic numerals, except that if the odds of winning a prize cannot be determined because the total number of entries is not known, the offeror shall make a statement to the effect that the odds of winning depend on the total number of entries received;

  • The exact prizes to be awarded in the drawing;

  • The beginning and ending dates of the contest period;

  • The date the drawing will occur;

  • The location at which the drawing will occur; and

  • The retail value of a prize; and clearly and conspicuously in at least 10-point type that airfare, lodging, or both are not included in a prize that is a trip or recreational activity to the extent that either or both are not included.

Applies only to sweepstakes where a prize is offered as an inducement to attend a sales presentation. Tex. Bus. & Com. Code § 621.106.

Additional disclosures required for 'matched contests' and certain sweepstakes offered through the mail where the prize value is in excess of US$50,000. Tx. Bus. & Comm. Code §§ 621.102, 621.103, 621.104.

Selected States – Recordkeeping Requirements

A number of states require the promoter of the sweepstakes to keep certain records for a period of time.

Florida – Operator must keep winning entries for 90 days after close or completion of game. Fl. Stat. § 849.094(5).

Rhode Island – Operator must maintain records of winners for 6 months following completion of the promotion. R.I. Gen. Laws § 11-50-3.

Texas – For certain contests other than a drawing, the offeror must maintain certain records relating to the contest for two years from the date the prize was awarded. Tex. Bus. & Com. Code § 621.202.

Selected States – Winners List

States that require registration will also usually require filing of winner's lists. Other states require winner’s lists to be made available on request.

Arizona – Must file winner's list within 10 days for intellectual contests. A.R.S. § 13-3311(B).

Florida – For registered sweepstakes, must file winner’s list for all prizes over US$25 in value within 60 days after final determination of winners. Fl. Stat. §849.094(5) The operator must provide a copy of the list of winners, without charge, upon request of any person. Id.

New York – Must file winner's list for all prize over US$25 in value within 90 days after determination of winners for registered sweepstakes. The promoter must also provide a winner’s list to any person that requests it. N.Y. Gen. Laws § 396-e(5).

Texas – At the end of the contest period, each person who conducts a contest shall provide the names of all major prize winners and the prizes won by each winner to any person who requests. Tex. Bus. & Com. Code § 621.204.