According to Bill 3626/2023, influencers may be prohibited from promoting betting games in Brazil.
Brazil may soon add its name to a growing list of countries that are putting rules in place for influencers linked to the game.
There is a bill pending in Congress that seeks to ban social media influencers from promoting unregulated gambling and betting platforms.
The Communication Committee of the Brazilian Chamber of Deputies approved Bill 3,915/2023 this week.
Bill wants to prohibit promotion
The proposal seeks to impose strict restrictions on digital influencers involved in promoting unregulated betting games.
This measure, like a similar but more restrictive decision in France, comes as a response to growing concerns surrounding the adverse effects of gambling advertisements on social media platforms.
It primarily focuses on the activity’s potential to negatively impact followers, especially the younger demographic.
The fear is that such promotions could lead to substantial financial losses and the inability to recover those losses.
There is also growing concern that, in extreme cases, this could result in compromised mental health.
Changing Influencer Responsibilities
The bill outlines explicit guidelines for serving advertising.
Emphasizes the responsibility of digital influencers to ensure that their content does not endorse or promote unregulated gambling activities.
Furthermore, it determines that all advertising carried out by entities based abroad complies with Brazilian legislation on billing and recognition.
The scope of the measure covers all forms of publication on social media, including videos, live broadcasts, stories and other formats.
Platforms (Twitch, YouTube, TikTok and others) will also have to collaborate with authorities in monitoring and immediately removing content that violates the provisions of the proposed law.
The transformation of social media continues
Therefore, this initiative has significant implications for the regulation of content disseminated by digital influencers.
Therefore, it serves as a potential safeguard for social media users against potentially harmful advertising practices.
The emphasis here is on the need for responsible content propagation.
In cases of non-compliance with the proposed regulations, the bill provides for a series of sanctions.
Possibilities include warnings and substantial fines that can reach 2% of the legal entity’s revenue, limited to R$50 million (US$10 million).
A violation can also lead to a permanent ban as an influencer. However, it is unclear how Brazil would apply it.
The next phase involves advancing the bill to the Finance and Taxation Commission (CFT) and subsequently to the Constitution and Justice Commission (CCJ). There, it will undergo a more in-depth examination before reaching the plenary vote.
