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Brazil adds new rules for lottery and prize promotions
Brazil’s Ministry of Finance has introduced new regulations for the monitoring of commercial lotteries and the distribution of prizes and their promotions, establishing clear enforcement action in case of violations.
The Secretariat of Prizes and Betting (SPA) has issued Ordinance SPA/MF No. 1818, which aims to control unregulated lotteries, draws, and any promotional campaigns conducted without prior approval. The Ordinance is intended to monitor contests, draws, and their advertisements to make sure that all materials comply with the government’s conditions.
Broadcasting concessionaires, companies, and civil society organizations are all expected to be reviewed in order to guarantee that promotional activities serve their intended purpose and that plans shared with the public are upheld.
In case of non-compliance, violators will face sanctions from the federal government, which will be equal to 100% of the full market value of the prizes offered to users. Additionally, companies may face license revocations or may be banned from offering any products for up to 3 years.
The government has shared that communication about the administrative proceedings will take place in electronic form, which means that investigated companies will have 30 days to respond and submit their defenses.
As an alternative resolution measure, the government has also introduced a Commitment Agreement, under which investigated companies can directly come to an agreement with the public authority by immediately stopping unregulated activities, compensating any losses, and paying a fee to Brazil’s National Treasury Single Account.
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