SÁB 18 DE MAYO DE 2024 - 13:05hs.
New guidelines

Brazil’s Economy Minister wants social networks help in promotion of sweepstakes rules

Within the scope of new rules for commercial promotions, Brazil’s Ministry of Economy seeks to oblige the incorporation of some message of alert to the consumer in posts of social networks of brands or influencers that promote raffles. On the other hand, a decree with rules for the sports betting market is technically ready for Bolsonaro to sign, according to local newspaper JOTA.

The Ministry of Economy must discuss with social networks rules for the promotion of sweepstakes within the scope of these media.

The idea is to create some mechanism in which every time there is a promotion by some type of influencer or profile, a message is placed alerting the consumer the need to verify that the draw is registered and follows the legislation. Something like what already happens on Instagram when talking about Covid-19 and the person already receives a message with information.

The discussion takes place within the scope of the new rules for commercial promotions, which are being developed in the economic area. The idea is to have something ready in the next three months, according to a source.

In this context, the ministry prepares an ordinance to change the rule of requirement for registration of sweepstakes and place this obligation for prizes with values above R$ 10,000 (US$ 2,100).

There was a draft Provisional Measure (PM) ready to deal with the issue, however, with the end of the Secretariat for Assessment, Energy and Lotteries (Secap) and the division of its activities, the discussion changed course and, under the direction of the Special Secretariat for Employment and Competitiveness (Sepcec), the idea is to invoke the law of economic freedom and make the measure only by ordinance.

To this end, sweepstakes worth less than R$10,000 (US$ 2,100) would be classified as low-risk activities, using the rules of Decree 10,178.

Another topic that was from Secap and went to Sepec, the decree with the regulation of the sports betting market is technically ready for the signature of President Jair Bolsonaro, but there is still no forecast of when this will occur. There will be a requirement for a grant of R$ 22 million (US$ 22m) and its validity begins four months after the presidential signature.

In this transition period, an ordinance will also be issued by the Ministry of Economy operationalizing the details of the decree. This additional regulation will be drawn up based on research that is already underway and on public consultation, which is yet to be carried out.

But it is clear that the advertisements of these companies, after these regulations, can only be made to those who are within the rules and have paid for the grant.

Source: Fabio Graner – JOTA Economics Analyst