Browse topics

  • Governing law
    Name Law or Code?
    Government Ordinance no. 99/2000 regarding the marketing of products and services ('GO 99/2000') Government Ordinance
    Government Ordinance no. 21/1992 on consumer protection Government Ordinance
    Law no. 148/2000 on advertising Law
    Law no. 158/2008 on misleading and comparative advertising Law
    Law no. 363/2007 on the fight against unfair commercial practices of traders in their relationship with consumers and the harmonization of regulations with European consumer protection legislation Law
    Government Emergency Ordinance no. 77/2009 on the organization and exploitation of games of chance Government Emergency Ordinance
    General Data Protection Regulation European Regulation

    Last modified 23 Jan 2019

  • Extra-territoriality

    GO 99/2000 applies to all commercial activities and services performed in Romania, irrespective of whether the organizer is a foreign entity or not.

    The GO 99/2000 does not provide a distinction between prize promotions operated by a Romanian entity on the Romanian territory and prize promotions operated purely online outside of Romania, whether targeting Romanian consumers or simply allowing them to participate.

    However, should Art. 6 of Rome 1 EU Regulation providing for the law governing contracts concluded between a consumer and a professional become applicable, Romanian consumers are protected by provisions included in national legislation which cannot be overwritten by the provisions of the promotion rules.

    Last modified 23 Jan 2019

  • Skills competitions

    Yes, but the organizer must ensure that the winner is selected based on their skills, knowledge and intelligence as demonstrated by their performance or entry.

    Last modified 23 Jan 2019

  • Prize draws

    A prize draw may be conducted if the participants do not have to make direct or indirect payment to enter the competition. (An example of an indirect payment is where an additional payment is required on top of the price of a product/service that is required to be purchased as condition of entry into the competition or an inflated price is charged for the good or service).

    Expenses incurred by participants in respect of postal services as well as normal telephone costs are allowed.

    A consumer competition could also be considered a game of chance and, thus, fall under the provisions of the gambling legislation if:

    • Material prizes, generally monetary, are awarded following a public offer of potential winnings by the organizer and acceptance of this offer by the participant;

    • A direct or indirect payment of a participation fee is required other than the normal cost of purchasing a good or service; and

    • Winnings are awarded on the basis of game rules through a random selection of the results of the events to which the game relates, regardless of how these results are achieved.

    If this is the case, the organizer must obtain certain authorizations and licenses.

    Last modified 23 Jan 2019

  • Selection of winners

    Selection of the winners shall be based on a draw (for prize draw) or on the participants’ performance (for skill competition).

    The name of the winners and their prizes must be made public by the organizer of the prize promotion. However, GO 99/2000 does not impose a specific means for the publication of the winners’ names and prizes granted, and thus, the organizer may choose the means of publication at its convenience.

    Last modified 23 Jan 2019

  • Judges

    There are no particular requirements in relation to judges or judging for skills competitions.

    Last modified 23 Jan 2019

  • Prizes

    The organizer must ensure that prizes granted correspond with the descriptions indicated in the competitions rules, marketing presentations or other similar documents. Otherwise, advertising communications may be considered as misleading, for example:

    • Where the advertising suggests to the addressee that he/she has won the prize, although the draw has not yet occurred

    • Where the advertising suggests to the addressee that he/she won an important prize, when in reality the prize has a minimum or nominal value

    The legal framework requires compliance with strict rules when advertising alcoholic drinks, tobacco, guns, weapons etc.; advertising for medicines issued with no medical prescription falls within the remit of the National Medicine Agency.

    Last modified 23 Jan 2019

  • Registration requirements and fees

    Registration Requirements

    No registration requirements apply to prize promotions.

    In terms of whether the organizer of a promotion should apply for tax registration in Romania - the position is unclear because the law is not straightforward as regards the nature of revenue obtained by individuals participating in promotions, which is relevant for tax registration purposes.

    If the revenues qualifies as 1) a prize, then registration is required. However if the revenue qualifies as (2) revenue from abroad, no registration requirements exist. In the meantime, the safest approach would be for the organizer granting the prize to apply for tax registration in Romania.

    Fees/Taxes payable

    According to the provisions of the Romanian Fiscal code, income from prizes obtained by a Romanian individual from a non-resident entity may be classified either as an income from a prize or as an income received from abroad. We are not aware of the approach of the tax authorities in Romania as regards the classification of the income received by a Romanian individual in such cases.

    In our opinion, the safest approach for the payer of the income / entity granting the prize would be for the income paid to be considered as income from prizes, in which case the payer of the income has the obligation to withhold, declare and pay the relevant income tax towards the Romanian state budget; therefore a tax registration process should be followed in this respect, while the taxes / fee registration due are immaterial.

    Nevertheless, if the income is classified as income received from abroad, the non-resident entity has no obligation in respect of income tax due in Romania, such obligation falls under the liability of the individual obtaining the income.

    Last modified 23 Jan 2019

  • Other local requirements

    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.

    Last modified 23 Jan 2019

  • Timing

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

    Last modified 23 Jan 2019

  • Translations

    GO 99/2000 does not clearly provide for the competition rules to be translated in Romanian. However, it is advised because of the requirement to get competition rules authenticated and to comply with consumer protection legislation which requires full and correct information to be provided to consumers.

    Last modified 23 Jan 2019

  • Penalties for non-compliance

    Under GO 99/2000, the non-compliance with the legal provisions might constitute a misdemeanor punishable by a fine which varies from RON 1,000 (approx. US$235) up to 5,000 RON (approx. US$1175), depending on the breach.  Finally, there is the possibility that the personal data processing aspects of the promotion could breach GDPR, which has maximum fines of up to the higher of:

    • €20 million; or

    • 4% of the promoter’s worldwide annual revenue.

    Last modified 23 Jan 2019

  • Restrictiveness of regulations

    GO 99/2000 set out general requirements which are not unduly onerous for the organizer.  However, GDPR has introduced various obligations around processing personal data which have significant application to prize promotions (eg. use of submissions including personal data, winner publicity, etc.).

    Last modified 23 Jan 2019

  • Regularity of sanctions

    No information has been released by the Romanian competent authority, and therefore no information can be provided.

    Last modified 23 Jan 2019

  • Key contacts
    Ana-Maria Andronic
    Ana-Maria Andronic
    Counsel DLA Piper Dinu SCA [email protected] T +40 372 155 816 View bio
    Paul Babus
    Paul Babus
    Junior Associate DLA Piper Dinu SCA [email protected] T +40 372 155 883
    Flavius Florea
    Flavius Florea
    Managing Associate DLA Piper Dinu SCA [email protected] T +40372155829
    Corina Badiceanu
    Corina Badiceanu
    Associate DLA Piper Dinu SCA [email protected] T +40372155853

Timing

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

Romania

Romania

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