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PRIZE PROMOTIONS AROUND the WORLD Full Handbook PRIZE PROMOTIONS AROUND THE WORLD Full Handbook Downloaded: 04 Oct 2021 TABLE OF CONTENTS PRIZE PROMOTIONS AROUND THE WORLD TABLE OF CONTENTS About Prize Promotions around the World . 2 Argentina . 3 Australia . 8 Austria . 26 Belgium . 31 Brazil . 36 Canada . 42 Chile . 47 China . 53 Colombia . 60 Finland . 65 France . 70 Germany . 79 Hong Kong . 86 India . 93 Ireland . 99 Italy . 107 Japan . 113 Mexico . 118 Netherlands . 126 New Zealand . 131 Norway . 136 Poland . 143 Portugal . 149 Romania . 155 Russia . 160 Saudi Arabia . 164 Singapore . 169 South Korea . 177 Spain . 181 Sweden . 185 Thailand . 191 United Arab Emirates - Dubai . 196 United Kingdom . 201 Ukraine . 207 United States . 213 ABOUT2 | DLA Piper Prize Promotions | www.dlapiperintelligence.com/prizepromotions/ PRIZE PROMOTIONS AROUND THE WORLD ABOUT Welcome to the third edition of DLA Piper's Guide to Prize Promotions Around the World. Prize promotions are a popular marketing tool used globally by businesses to attract customers. The internet and various social media platforms make this an attractive, cost efficient means of reaching a large, multi-jurisdictional customer base; but it is not without its legal challenges. This handbook is designed to equip our clients with a useful tool to assist them with the management of the early development stages of a promotion and to bring to their attention as soon as possible potentially problematic issues. NEW FEATURES In response to client demand, this third edition of the Guide has been expanded to cover 35 jurisdictions which count among the most significant for our clients. We have also expanded the range of topics covered, and are now able to illustrate the range of risk profiles of the different jurisdictions through our interactive map. ABOUT OUR GLOBAL ADVERTISING AND MARKETING TEAM The DLA Piper global advertising and marketing team is well-versed in handling complex, frequently multi-jurisdictional compliance projects. This includes advising on compliance aspects of international prize promotions, which we are often asked to clear across large numbers of jurisdictions, while working to short deadlines. More broadly, our global advertising and marketing team is able to support the full range of advertising-related work, from copy clearance to dealing with advertising regulators and litigation, to negotiating advertising and sponsorship deals, to e-privacy issues and ad-tech. Our advertising and marketing lawyers offer deep understanding of the advertising and media industries, and combine this with a sophisticated approach to cross-border working. DISCLAIMER This Guide is not a substitute for legal advice. Nor is it intended to be an exhaustive guide to all rules and regulations relating to promotions in the jurisdictions covered, or to cover all aspects of the legal regimes surveyed, such as specific sectoral requirements. Rather, it aims to simplify what are often complex provisions into a more manageable summary and to highlight areas of potential concern to promoters. It is current as at the last modified date stated in each section. ARGENTINA3 | DLA Piper Prize Promotions | www.dlapiperintelligence.com/prizepromotions/ PRIZE PROMOTIONS AROUND THE WORLD ARGENTINA Last modified 10 February 2017 GOVERNING LAW What are the applicable governing laws or codes for prize promotions? Name Law or Code? The Civil and Commercial Code of the Code Argentine Republic ('CC Code') The Commercial Loyalty Law (Law number Law 22,802 as amended) Customers' Protection Law (Law number Law 24,240 as amended) Personal Data Protection Law (Law number Law 25,326 as amended) Decree 588/1998 Decree Federal Lottery Resolution 17/2011 Resolution Note: Prize promotions regulations in Argentina are the responsibility of each province. In the Autonomous City of Buenos Aires, Law number 538 regulates gambling games and the deployment of mass media (graphic, TV, radio). EXTRA-TERRITORIALITY Do national regulators enforce rules against entities operating abroad? In principle, if a promotion is operated purely online from outside of Argentina and the prizes are awarded outside of Argentina, the national regulators will not apply the local Argentine rules. Such promotion would be governed by the foreign jurisdiction's regulations. 4 | DLA Piper Prize Promotions | Argentina | www.dlapiperintelligence.com/prizepromotions/ PRIZE PROMOTIONS AROUND THE WORLD promotion would be governed by the foreign jurisdiction's regulations. According to the Civil and Commercial Code, in contracts concluded outside commercial establishments, long distance, and using electronic media or similar, the place of performance is considered to be the place in which the consumer received or should have received the performance of the contractual obligations. That place sets the applicable jurisdiction for any conflict derived from the contract. Any provision extending jurisdiction is ignored. SKILLS COMPETITIONS Can a prize promotion be run that is based on skill? 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, and No element of chance should be used to determine the winner of the promotion PRIZE DRAWS Can a prize promotion be run where there is an element of chance in the selection of the winner? 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 Prior authorization from the Federal Lottery Agency (and in some cases by the Provincial entities regulating chance games) needs to be obtained when the prize exceeds AR$ 6,666 (approximately USD$425) in value Please note that awards based on answering general culture questions do fall within this category under Decree 588/1998. SELECTION OF WINNERS Are there any requirements for the selection of winners and award of prizes? The terms and conditions of the promotion must be made available to the public and the process through which the winners shall be determined needs to be clearly established, including dates and place where the process will take place. It is suggested that the process be supervised by a Notary Public. If the awards are to be determined by chance, the mathematic adjudication used to determine the winner needs to be provided; if this is not possible an approximate estimation of it needs to be provided. The terms and conditions should indicate date and place where the prizes will be delivered and winners 5 | DLA Piper Prize Promotions | Argentina | www.dlapiperintelligence.com/prizepromotions/ PRIZE PROMOTIONS AROUND THE WORLD The terms and conditions should indicate date and place where the prizes will be delivered and winners should be notified within 10 days of the prizes being awarded. JUDGES Are there any particular requirements in relation to judges or judging for skills competitions? There are no legal requirements in relation to judges and judging in skill competitions. PRIZES Are there any restrictions on the prizes awarded? Prizes awarded must be as described in their marketing communications, or reasonably equivalent to the description. No forbidden and/or illegal goods should be awarded as prizes. REGISTRATION REQUIREMENTS AND FEES Are there any registration requirements, or any fees/taxes payable? Promotions where the winner is selected either directly or indirectly by chance, and where the prize amount exceeds AR$ 6,666 (approximately USD$425), need the prior approval of the Federal Lottery Agency (and in some cases of the Provincial entities regulating chance games). The entity running the promotion needs to obtain a 1 year permit plus an individual permit for each promotion. The fees for an individual permit amount to AR$ 4,000 (approximately USD$255) according to resolution 17/2011. When a prize is awarded to a winner selected by chance a 31% special tax is levied. If the.
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