SÁB 24 DE AGOSTO DE 2019 - 13:10hs.
Odorico Neto, Partner-owner at On808

Draws with prizes on social media need prior authorization

A wave of draws is invading the social networks. It is very common these days to see profiles on Instagram and Facebook distributing prizes in exchange for followers and visibility. 'What you may not know is that these unauthorized promotions and sweepstakes are illegal,' explains Odorico Neto, a partner-owner of On808, a business promotions strategy company.

In Brazil, lotteries and draws have legal regulations and we can find them in the form of Federal Lotteries, capitalization certificates, prizes distributions and Jockey Clubs.

These draws and promotions that we see in the social media fall under the specific legislation of Free Distribution of Prizes, to Propaganda Title. They need prior authorization regardless of the environment and / or the location where they are performed.

That is, the fact that the draw is held in one of the social media, such as Facebook or Instagram, does not exempt you from this authorization. But after all, what can happen to a brand or a user when participating in draws and promotions without regulation?

The profile that promotes these sweepstakes and promotions without authorization can suffer a crisis in its image. It is not interesting to be seen as a brand that does not respect the laws of your country. In addition, there are serious judicial implications.

Currently, the granting of this authorization for the lottery is the Ministry of Finance, through the Secretariat of Fiscal Monitoring – SEFEL- and make a drawing without prior authorization of this body is not legal

The applicable penalties may apply separately or cumulatively:

a) fine of up to one hundred percent of the sum of the values of the goods promised as prizes;

b) prohibition to carry out such operations during the term of up to two years;

And for the user?

In addition, the user may also be harmed by participating in these promotions and draws. The regulation legally guarantees that the consumer is protected when participating, that the determination is not subject to fraud and that the prize is delivered. Without this, there is no guarantee that the process will be authentic.

So how do you know if sweepstakes or promotion is regulated? It's very simple. Regulatory bodies create an authorization number that is disclosed in all advertising pieces. You can and should question profiles and brands about these regulations. So it will be protected to test your luck!

Odorico Neto

Odorico Neto graduated in Administration, Law and Marketing and was manager in the administration of the Federal Lotteries for 20 years. Currently, he specializes in Commercial Promotions, with mastery in the knowledge of Promotional Legislation, conducting consulting and courses applied to sales professionals, marketing and the creation, planning and operation of commercial promotions. He is an unconditional fan of fuses, Chevrolet trucks and miniature cars, as well as being a deep Formula 1 specialist.

Source: GMB