Penalties for non-compliance
What are the penalties for non-compliance?
Prize promotions are in general supervised by the Czech Trade Inspection. Misleading the consumers in connection with prize promotions may lead to a fine of up to 5 million CZK (approx. US$220,000).
There is also a possibility that the personal data processing aspects of the promotion could breach the GDPR, which imposes fines of up to 20 million EUR (approx. US$22.4m) or 4 % of the entity's worldwide annual revenue.
If the prize promotion fulfilled the criteria of gambling as explained above, the entity operating such prize promotion without a permit could be fined with an administrative penalty of up to 50 million CZK (approx. US$2 million) if the entity is a company and up to 500,000 CZK (approx. US$22,000) if the entity is a private individual. Operation of gambling without a license may also trigger criminal liability.