Item | Top level assessment |
Can you run prize draws in Brazil? (i.e. chance based promotion) | Yes |
Can you run competitions in Brazil? (i.e. skill based promotion) | Yes |
Is local registration required? | Yes, registration and local entity required |
Is regionalisation/translation required? | Yes |
Are there restrictions on prizes? | Yes |
Can you run purchase necessary prize promotions in Brazil? | Legislation is not clear, safest to include a no purchase necessary route |
Compliance feasibility and cost | Feasible but challenging, medium-high cost |
Running a Prize Draw or Competition in Brazil (Laws, Rules and Regulations)
Brazil is undoubtedly the largest market in South America and is thus a huge opportunity for any international prize promotion, however it does come with specific requirements, the need to seek Authorization from the Ministry of Finance Secretariat of Economic Reforms – “SRE” (formerly the authority was the Brazilian National Savings Bank or Caixa Econômica Federal – “CEF”), and critically to be a Brazilian legal entity (e.g. a registered company), or partnered with a Brazilian legal entity (who would be officially responsible). There are numerous prize restrictions also, including prohibition of cash and intangible prizes, but giving away consumer goods should be perfectly feasible. There is also the potential for purchase necessary promotions serving an enormous consumer base.
Brazilian Prize Draws, Sweepstakes and Giveaways (Chance Based Promotion)
Prize draws and games of chance are allowed in Brazil subject to SRE Authorization.
Depending on the exact mechanic, Brazil has differing requirements of exactly how entries/numbers are allocated and winners are drawn.
Brazilian Competitions and Contests (Skill Based Promotion)
Skill based promotions are allowed in Brazil subject to SRE Authorization.
If chance or a random draw is in any way involved in a skill based promotion, it will likely be within the scope of the CPA and/or Lotteries Act and a campaign will need to adhere to its requirements.
Purchase Necessary Promotions in Brazil
Purchase necessary promotions are allowed in Brazil, subject to SRE Authorization.
Promotional products should be the same price as non promotional products of the same type, and redemption of the prize or coupon should not require any payment, download or SMS.
In some specific instances, purchase necessary promotions may have a maximum prize value limit.
Brazilian Prize Restrictions
Brazil has always had quite stringent requirements on what prizes they allow. The The following is “generally authorized”:
- Goods manufactured in Brazil or regularly imported
- Public debit titles approved by the Ministry of Finance
- Residential property in Brazil
- Tourism trips
- Scholarships
- Tickets to cultural events (e.g. concerts, gigs, plays, exhibitions) combined with a physical prize
The following is not allowed as prizes:
- Medicines
- Weapons and ammunition
- Explosives
- Fireworks
- Alcoholic beverages
- Tobacco
- Cash, any prize that can closely resembles cash (prizes can not have a cash equivalent)
- Any prize that requires a paid download or redemption
- Intangible (i.e. non physical prizes) with the exception of those mentioned above
Data Protection in Brazil
The Internet Act, Brazilian Civil Code and the Consumer Defense Code govern data protection in Brazil.
Specific consent must be collected from the entrants for the use, transfer and storage of personal data and entrants must be given the opportunity to withdraw consent at any time (e.g. unsubscribe or otherwise opt-out).
Other Brazilian Compliance Requirements
Registration (“Authorization”) is required in Brazil for all prize promotions. Fees are dependent on the value of prizes offered, and can reach sizeable amounts for higher value prize promotions.
Authorization requests must be filed more than 40 days (min) up to 120 (max) days prior to the beginning of any promotion. A response from the SRE should be due in 30 days from the date of the request, assuming no information is missing or clarification is sought, to either approve the promotion or request additional information.
There are potential exceptions to the Authorization requirement, where contests (i.e. games of skill, with no game of chance/random elements) that are exclusively cultural, artistic, sportive or recreational in nature, with no payment requirement may not require Authorization, but these instances are extremely limited. You should assume that in almost all cases Authorization is required: if the promotion is in any way linked to a trademark, product or service (i.e. all commercial promotions), promoters must seek Authorization.
It is very important to note that Authorizations are granted to Brazilian legal entities only, that are engaged in the industrial, commercial and real estate businesses. Foreign entities without a legal presence (e.g. a subsidiary) in Brazil may apply with an associated or partnered Brazilian entity, though that Brazilian entity will be responsible for the promotion as far as the authorities are concerned.
If during winner selection a winner(s) is disqualified, the promoter may select and notify a new winner(s), however, if a winner has been announced and is then disqualified or otherwise ineligible, a new winner cannot be selected, the prize must be forfeited and the value of the prize must be paid to the state.
Similarly, if a winner is unable to be contacted or is unable for any other reason to confirm (after the announcement of results), a new winner cannot be selected, the promoter must wait/attempt to fulfil for 180 days, after which the prize must be forfeited and the value of the prize must be paid to the state.
Promotional campaigns may not run for longer than 12 months.
All promotional materials (including terms and conditions) must be available in Portuguese.
Once the promotion has ended, the promoter must provide proof of compliant conduct of the promotion to the SRE (i.e. that it has been run properly and prizes have been properly allocated). There is a time limit on this requirement but will depend on when the prize has been allocated.
Our view on Brazil for Prize Promotions
Despite the rigours (and fees) associated with Authorization, Brazil is such an attractive consumer market that it should nevertheless be considered. The biggest hurdle is arguably the association with a Brazilian entity (if no Brazilian subsidiary of the promoter exists), and a partnership that makes them effectively responsible for the proper conduct of the contest. If a compliant promotion can be designed (congruent with prizes being offered in other territories for example), and Authorization is granted, Brazil will offer a colossal pool of engaged entrants.
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Disclaimer: The information on this page and other individual or summary compliance pages are not substitutes for formal compliance advice and Contest PR do not make any warranty regarding accuracy or completeness. They are highly simplified general guides and may not be up to date at the time of reading. Please get in touch for up to date advice and compliance assistance on this territory.