Individuals cannot carry out sweepstakes on social media in Brazil
Photo: Agencia Brasil

Currently, sweepstakes are increasingly common on Brazilian social networks, especially on Instagram. However, the legislation in force prohibits the drawing of prizes in promotions, contests and gift vouchers by individuals.

On Monday, the 21st, influencer Kleber Moraes, from Brasília, was arrested in an operation that investigates the practice of games and money laundering. Moraes sold irregular raffles for luxury cars, motorcycles and cell phones on the platform and sold them on Instagram and Youtube.

“Disclosure of promotion on the platform takes place “at the user’s own risk, with the social network being exempt from liability”, says the Instagram note sent to the G1 portal. Also according to the social network, if a person uses the app to advertise or carry out a promotion, he is “responsible for the lawful operation of the promotion”.

While Facebook has communicated that it removes “content that is intended to deceive, misrepresent, commit fraud or exploit others, in exchange for money or property”.

Sweepstakes are only allowed for legal entities with government authorization

This action is only released to legal entities that carry out commercial, industrial or property acquisition and sale activities after a request to the Trade Promotion Control System (SCPC), of the Ministry of Economy, respecting a period of 40 to 120 days before the promotion.

Civil society organizations and philanthropic contests also require government permission. In addition, some goods cannot be raffled off, such as medicines, weapons, fireworks, alcoholic beverages, cigarettes and explosives.

And, promotions that encourage games of chance, provide unrestricted profit to their executors, generate harm to children and adolescents, link the distribution of prizes to the results of the Sports Lottery and do not guarantee equal treatment for all competitors are prohibited.

After the tender, the company needs to report to the Federal Government, according to the terms of the legislation. The company that carries out the distribution of prizes without authorization or is not accountable may be banned from carrying out these promotions for up to 24 months and receive a fine of 100% of the prize amount.

The person responsible for the contest must also pay an inspection fee, established from the value of the award:

  • Prize up to BRL 1,000: fee of BRL 27.00;
  • Prize from R$ 1,000.01 to 5 thousand: fee of R$ 133.00;
  • Prize from BRL 5,000.01 to 10 thousand: fee of BRL 267.00;
  • Prize from R$ 10,000.01 to 50 thousand: fee of R$ 1,333.00;
  • Prize from BRL 50,000.01 to 100 thousand: fee of BRL 3,333.00;
  • Prize from BRL 100,000.01 to BRL 500 thousand: fee of BRL 10,667.00
  • Prize from BRL 500,000.01 to BRL 1,667,000.00: fee of BRL 33,333.00;
  • Prize over BRL 1,667,000.01: fee of BRL 66,667.00.