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

Timing

Is time required to ensure compliance (other than reviewing the terms and conditions)?

Argentina

Argentina

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.

Australia

Australia

For States and Territories which require permits, including New South Wales, Western Australia, Northern Territory and the Australian Capital Territory, 2-3 weeks should be allowed from the finalization of terms and conditions to commencement of promotion since the permit approval process can take up to a few weeks.

Austria

Austria

Austrian laws do not require any registration of terms and conditions of prize promotions.

But time should be allowed to deal with data protection issues (e.g. ensuring an appropriate privacy policy is in place and including appropriate tick box functionality for consents).

Belgium

Belgium

No, although time should be allowed to deal with data protection issues (eg ensuring an appropriate privacy policy is in place and including appropriate tick box functionality for consents).

Brazil

Brazil

It is required by the law that all requests for Authorisations must be filed within the minimum prior term of 40 days before the initial date of the promotion and/or its marketing campaign.

Also, the execution period of the promotion may not exceed 12 months.

Canada

Canada

Yes, if the contest will be open to Québec residents, then registrations are required at least 30 days prior to the contest commencing.

Chile

Chile

No. However, time should be planned in order to deal with data protection compliance issues.

China

China

No, although time should be allowed to deal with data protection issues (e.g. ensuring an appropriate privacy policy is in place and including appropriate tick box functionality for consents).

Colombia

Colombia

The application for an authorization must be presented by the promoter at least 10 days before the beginning of the advertising campaign. Nonetheless, the authorization might, in some cases, take more than 10 days. The campaign cannot, in any circumstances, start without an authorization.

Denmark

Denmark

If the company is subject to a license or payment of duties time must be allowed in order to ensure compliance with local Danish law.

Finland

Finland

No, although time should be allowed to deal with data protection issues (eg ensuring an appropriate privacy policy is in place and including appropriate tick box functionality for consents).

France

France

Time should preferably be allowed to file the terms and conditions in the office of a bailiff, which may take a few hours or up to a couple of business days.

Time should also be allowed if the organizer has not yet made the appropriate steps towards becoming compliant with the GDPR and French data protection act requirements as regards the management of the personal data collected and processed in connection with promotional operations, including, without limitation, the creation and maintenance of a record of data processing activities, appropriate information notices provided to data subjects, and formal processes implemented in order to enable the latter to exercise their rights (i.e. access, rectification and erasure, data portability, objection, restriction of processing, the right to digital legacy).

Where the processing of personal data in the context of promotional operations is likely to result in high risks to the rights and freedoms of natural persons (e.g. where such data is used to profile participants), the organizer must also proceed with a Personal Data Impact Assessment.

In France, since the entry into force of the GDPR on May 25, 2018, the general principle is that each processing purpose for which personal data is processed must be evidenced with a record of data processing activities. Therefore, it is not a requirement to make a record entry for each promotional operation, but to have one record entry encompassing the management of the personal data collected and processed in the course of such operations (provided that means of processing and data processed are similar). If personal data is transferred outside of the European Economic Area, it is necessary to 'ensure that the recipient is located in a country recognized by the European Commission as ensuring an adequate level of personal data protection, or that a proper transfer mechanism is implemented (e.g. binding corporate rules, European Commission model clauses).

In addition, the organizer shall allow time to implement 'Privacy by Design' and 'Privacy by Default' principles to any further processing of personal data in the context of promotional operations (i.e. ensure that appropriate technical and organizational measures are implemented to meet the requirements of the GDPR and that, by default, only the personal data that is necessary for the purposes of promotional operations is collected and processed).

Germany

Germany

No.

Hong Kong

Hong Kong

For a Trade Promotion Competition License, the completed application forms, together with the supporting documents and publicity materials, should reach the Licensing Authority at least two calendar weeks before the commencement of the promotion. Applicants are advised to apply for a Trade Promotion Competition License well in advance if advertisements of the promotion are to be placed in the media.

For an Amusements With Prizes License, the completed application forms, together with the supporting documents, should reach the Licensing Authority at least three calendar weeks (for short-term licenses) or four weeks (for annual licenses) before the commencement of the promotion. An Amusements with Prizes License will only be issued after the Places of Public Entertainment License has been issued by the Food and Environmental Hygiene Department.

Hungary

Hungary

Prize draws must be reported to the GSA in advance.

India

India

No, although time should be allowed to deal with data protection issues (eg ensuring an appropriate privacy policy is in place and including appropriate tick box functionality for consents).

Ireland

Ireland

No, although time should be allowed to deal with data protection issues (e.g. ensuring an appropriate privacy policy is in place and including appropriate tick box functionality for consents). Where a promoter proposes to operate a prize draw which involves a payment or purchase of product and winners being selected randomly (i.e. “by chance”), the promoter should consider applying for a lottery licence, and allow 3 months for the licence application process, including making arrangements with a charity that will be associated with the lottery.

Italy

Italy

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 an online procedure.

Japan

Japan

No, although time should be allowed to deal with data protection issues (eg ensuring an appropriate privacy policy is in place and including appropriate tick box functionality for consents).

Mexico

Mexico

Yes, where a licence/registration is required, time is required to apply in some cases.

For instance, in accordance with the NOM 028 if an entity issues promotions of collectable items by means of draws or contests it shall provide information about the promotions to Profeco 3 days prior to the starting date of such promotions.

Netherlands

Netherlands

No.

New Zealand

New Zealand

No.

Nigeria

Nigeria

No additional time is required.

Norway

Norway

No for prize promotions (i.e. skills competitions or prize draws).

Where a license is necessary i.e. for lotteries, then time must be factored for the lottery authority's case handling time. For smaller lotteries, a notification must be sent at least 14 days prior to the lottery being held.

Poland

Poland

There are no special requirements in this regard.

Portugal

Portugal

Yes.

For prize draws: in case SGMAI is the competent Authority (to be assessed on a case by case basis),  the authorization request and the terms and conditions shall be submitted submitted, at least 15 days before the prize promotion starts to provide sufficient time for authorization to be considered and granted.

Terms and conditions of the prize draw must be made available to the participants before the beginning of the promotion and, if possible, expressly accepted by the participants.

Regarding skill competitions, terms and conditions of the skill competition must be made available to the participants before the beginning of the promotion and, if possible, expressly accepted by the participants.

Furthermore, the timings should provide sufficient time for compliance with data protection requirements prior to the beginning of the prize draw or skill competition (eg. ensuring an appropriate privacy policy is in place and including appropriate tick box functionality for consents).

Romania

Romania

No, although time should be allowed to deal with data protection issues (e.g. ensuring an appropriate privacy notice is in place).

Russia

Russia

No.

Saudi Arabia

Saudi Arabia

The ACFR provides that the application for a license must be reviewed within seven days from the date of its submission, and in the instance where the conditions are deemed to be satisfied, the license is to be issued. If the application is rejected, the applicant is required under the ACFR to be notified of the rejection, with reasons for the rejection, within 10 days from the date of submission of the application.

However, in our experience these types of processes with the authorities are not always straightforward and may involve multiple submissions which can take considerably longer than the guidelines stipulated by the law. This does not include the time required to prepare and execute the necessary submissions for a license application, and any additional requirements that may subsequently be required by the competent authorities.

Therefore, it is advisable that preparations for any application are initiated as soon as possible (preferably months) in advance of the proposed promotion / competition. We would be able to advise on the likely process, requirements, documents and timings depending upon the specific promotion / competition envisaged.

Singapore

Singapore

For organizations running prize promotions that qualify under any of the exemptions in the Remote Gambling (Exempt Persons) Order 2015 (as discussed in the section regarding competitions based on chance) there is a standard condition that at least 4 weeks before any advertisement giving publicity to, or otherwise promoting or that is intended to promote, the lottery is published, certain details must be given to the Head of the Specialized Crime Policy Branch, Criminal Investigation Department, of the Singapore Police Force.  These details include the name and address of the business organization providing a remote gambling service for individuals to participate in the customer lottery, the arrangements for the lottery and the prizes and manner of their allocation, together with copies of the communications given to or to be given to the customers or to the general public.

In respect of exempt prize promotions under the Common Gaming Houses (Exemption) Notifications (as discussed in the Prize draws section), the following details must be disclosed on printed publicity material:

  • The methodology of the promotion;

  • The details of the prizes to be distributed and their manner of distribution; and

  • If the winners are determined solely or partly by a draw, the time, date and place of the draw.

Copies of the above information must be freely available to all participants and 2 copies must be sent to the Head, Gambling Suppression Branch, Criminal Investigation Department, by AR registered post (a postal service which provides proof of receipt) at least 4 weeks prior to the launch of the promotion.

Importantly please note that applying to the MHA for a permit or exemption to carry out a prize promotion can be a time-consuming process depending on the type of permit or exemption being applied for. According to the Singapore Police Force website, the normal processing time for an application for a private lotteries permit is approximately 2 months from the receipt of the application and the necessary supporting documents. General applications for exemptions under the RGA and the CGHA may take up to approximately 1 month to process. For a certificate of exemption under the RGA (referenced above in question 8), the Ministry of Home Affairs has stated that it would generally take between 9 to 12 months to evaluate and assess such applications.

Furthermore, please allow for additional time as specific conditions may be imposed on the organization on the granting of a permit to run the prize promotion.

South Korea

South Korea

No, unless prior approval is required for businesses involving 'speculative acts' (refer to section on Prize draws).

Spain

Spain

Yes. In the case of prize draws (or any other competition where a random element is involved), it is necessary to pay the 10% promotional tax. Preparing and filing the related tax forms with the tax authorities may take a week. Should the sponsor of the competition be based abroad, a Spanish Tax ID for non-residents shall be obtained. The formalities attached to it may take one to two weeks.

Sweden

Sweden

No, although time should be allowed to deal with data protection issues (e.g. ensuring an appropriate privacy policy is in place).

Thailand

Thailand

The arranger is required to obtain the License prior to the prize promotion event. A period of at least 90 days is required for DOPA to review the application and grant the License, provided that all information and documentation is fully completed and acceptable to DOPA.

Turkey

Turkey

The organizer is required to apply to the GDNL at least 15 days before the prize promotion event. The GDNL generally reviews and responds to the application within 5 business days of receiving the application.

Ukraine

Ukraine

No.

United Arab Emirates - Dubai

United Arab Emirates - Dubai

No, although the DED requires that the term of the promotion does not exceed two months (in other words, longer promotions will require more than one permit). A permit may take two to three weeks to obtain.

United Kingdom

United Kingdom

No, although time should be allowed to deal with data protection issues (see Other local requirements).

United States

United States

Overall Summary

Generally speaking you should allow enough time for the rules to be drafted and posted, data protection issues resolved, advertising reviewed and all entry mechanisms tested before launching the sweepstakes or competition. In addition, you need to allow additional time to meet any applicable registration requirements. Registration deadlines are provided below.

Selected States

Arizona – No specific time requirement except that they should be filed prior to the commencement of the promotion. A.R.S. § 13-3311.

Florida – The sweepstakes registration form needs to be filed at least 7 days in advance of the commencement of the game promotion if the total announced value of all prizes is greater than US$5000. Fl. Stat. §849.094(4)(a).

New York – The sweepstakes registration form and the official rules need to be filed at least 30 days before the sweepstakes commences if the total announced value of all prizes exceeds US$5000. N.Y. Gen. Laws § 396-e(1).

Rhode Island – No specific time requirement except that they should be filed prior to the commencement of the promotion. R.I. Gen. Laws § 11-50-1.