What to Know About Creating a Promotional Sweepstakes Microsite

A promotional sweepstakes microsite is a web page (a type of website) created by a company or organization to promote its products or services through prize drawings. This type of site is usually live for a set period and is intended to increase public interest in the brand.

On this type of microsite, the company or organization usually offers participants attractive prizes, such as trips, electronics, shopping vouchers, and more. To enter, consumers need to complete a specific task, such as purchasing a product and submitting the receipt, filling out a form, answering a questionnaire, or sharing a post on social media.

This type of project must comply with the rules established by the regulatory body responsible for overseeing these initiatives.

Which entity is responsible for regulating sweepstakes on microsites or websites in Brazil?

Currently, authorization to hold sweepstakes in Brazil is granted by the Secretariat for Evaluation, Planning, Energy and Lottery (SECAP), an agency affiliated with the Ministry of Economy.

Legal Aspects

• SECAP registration: In Brazil, commercial promotions must be registered with the Secretariat for Evaluation, Planning, Energy and Lottery.
• Rules: Develop clear rules that include:
  • Entry rules.
  • Date and time of the drawing.
  • Eligibility criteria.
  • Prize details.
  • Privacy policy.
• LGPD: Make sure the microsite complies with the General Data Protection Law and explains how participants' data will be used.

Are any types of sweepstakes exempt from authorization?

In Brazil, some exceptions mean authorization is not required to hold a drawing. See below.

EMPLOYEE INCENTIVE CAMPAIGN

• An incentive program for employees with an employment relationship, intended to encourage sales or the achievement of targets;
• May include prize drawings among participating employees;
• Example: awarding prizes to the 10 employees who meet a specific target.

POINTS/LOYALTY PROGRAM

• Registered consumers earn points when they purchase products from the sponsoring company;
• Once they reach a certain number of points, they can redeem them for products or services, according to the program rules.

EXCLUSIVELY CULTURAL, ARTISTIC, SPORTS OR RECREATIONAL CONTEST

• A contest intended to foster cultural, artistic or sports development through a primarily recreational format;
• Examples include literary works, essays, stories, poems, paintings, photographs, drawings, sports competitions, children's games and scavenger hunts;
• It cannot have a commercial or advertising purpose or involve chance, in accordance with Ordinance MF 422/2013.

For more information about the rules, visit the official Ministry of Finance website at Frequently Asked Questions About Commercial Promotions.

Does an international organization need to apply for authorization?

The answer is YES!

Any organization, whether domestic or international, that wants to hold sweepstakes on online platforms for a Brazilian audience must comply with applicable Brazilian laws and regulations, including the rules established by SECAP.

How do I apply for authorization?

To apply for authorization for a commercial promotion, access the Commercial Promotion Control System (SCPC).

If you have questions, SCPC support channels are available 24 hours a day, 7 days a week. To get help, fill out and submit the form, or call the telephone support center at 0800-978 2332.

You can find more information on the Federal Government website by following this link.

What are the authorization processing and expiration deadlines?

Under the rules established by Ordinance Seae/MF No. 41/2008, authorization must be requested at least 40 days before the promotion begins, and no more than 120 days in advance.

The authorization's validity period will be specified in the Authorization Certificate and must match the time frame for carrying out the promotion, without exceeding 12 months.

The Authorization Certificate number will be published in the rules and in the document issued after the application has been reviewed and approved. It must appear in all forms of advertising related to the commercial promotion.

What information about sweepstakes authorization should my promotional microsite include?

To ensure an authorized website sweepstakes is transparent and secure, it is essential to follow the rules and recommendations established by the regulatory body. Some of the important information that should be included on the site is listed below.

• Complete details about the company or organization responsible for the drawing, including its name, registered business name, CNPJ, address and contact information.

• A clear and detailed description of the drawing, including the prizes, the dates and times of the drawing, entry rules, how the results will be announced and other relevant information.

• Authorization to hold the drawing, including the authorization number and date, and a link to access the document on the regulatory body's website.

• Entry conditions, including whether prior registration is required, the minimum age to enter, eligibility criteria and other relevant information.

• Clear instructions on how to enter the drawing, including the entry process, the entry deadline, payment methods, entry restrictions and other relevant information.

• How the results will be announced, including the date and time of the announcement, the communication channels used and other relevant information.

• Procedures for validating the drawing results, including how the results will be determined, the deadline for claiming prizes, how participants will be contacted and other relevant information.

All information published on the site must be clear, accurate and up to date to ensure the drawing is transparent and reliable. Keep in mind that rules can change frequently, so we recommend checking the regulatory body's website to avoid problems with your promotion.

We hope these clarifications help you run a successful sweepstakes on a promotional microsite.