1. PROMOSFERA SRL - Via G. Giusti 65/A, 21019 – Somma Lombardo (VA) - Tel-Fax 0331 252144 - P.I. 02250050024
INTERNATIONAL PRIZE PROMOTIONS
HOW TO….?
Useful tips
for running international sweepstakes and contests
Version 2 – May 2017

2. PROMOSFERA Srl - Via G. Giusti 65/A, 21019 – Somma Lombardo (VA) - Tel-Fax 0331 252144 - P.I. 02250050024
INDEX
• International Prize Promotions: Laws
• International Prize Promotions: KEY FACTORS
• International Prize Promotions : how to run them in many countries

3. Running an international prize promotion is an increasingly
popular way for Companies to engage with consumers.
Of course, international prize promotions offer many benefits
but, on the other hand, the real challenge for marketers is to run
them without breaking the law.
The aim of this presentation is to let you to know that organizing
an international prize promotion open to one or more countries is
possible …
and it can be easier than you think, with our help!
PROMOSFERA Srl - Via G. Giusti 65/A, 21019 – Somma Lombardo (VA) - Tel-Fax 0331 252144 - P.I. 02250050024

4. PROMOSFERA Srl - Via G. Giusti 65/A, 21019 – Somma Lombardo (VA) - Tel-Fax 0331 252144 - P.I. 02250050024
First of all, it is important to notice that there isn’t any unique law regarding
«International Prize Promotions»: each European and extra European country
has its own specific laws and regulations.
When targeting a specific country, companies must abide by local laws on:
• Prize promotions
• Privacy
• Customer Protection Regulations
• Taxes
INTERNATIONAL PRIZE PROMOTIONS: LAWS

5. PROMOSFERA Srl - Via G. Giusti 65/A, 21019 – Somma Lombardo (VA) - Tel-Fax 0331 252144 - P.I. 02250050024
INTERNATIONAL PRIZE PROMOTION: KEY FACTORS
Before organizing an international prize promotion, it is necessary to check:
1. Is the mechanic legal in all the countries involved?
2. Is it necessary to notify the promotion or to obtain any authorities’
approval?
3. Which prizes are allowed under local laws?
4. Are there any taxes to be paid on prizes?
5. Are there any guidelines for ADV and POS Materials?
6. Are there any Privacy rules to be followed?

6. PROMOSFERA Srl - Via G. Giusti 65/A, 21019 – Somma Lombardo (VA) - Tel-Fax 0331 252144 - P.I. 02250050024
1. FEASIBILITY OF THE PROMOTION
Be careful! Even the easiest mechanic might be forbidden
under each country’s laws.. For example:
>> In Sweden and Belgium: prize draws are forbidden, even if they are free!
>> In Switzerland and USA: prize promotions (Sweepstakes and Contests) linked to
purchase are strictly forbidden!
2. AUTHORITIES’ APPROVAL ON THE PROMOTION
In some countries, prize promotions are subject to a permission or
notification with local Authorities. For example:
>> in Italy and Croatia: you must notify all prize promotions to the Deparment of
Economic Development at least 15 days before the beginning.
>> In Portugal: you must obtain a specific Licence from the Government;
>> In France and Luxemburg: it is necessary to deposit the Official Rules before an
Huissier de Justice

7. PROMOSFERA Srl - Via G. Giusti 65/A, 21019 – Somma Lombardo (VA) - Tel-Fax 0331 252144 - P.I. 02250050024
3. THE VALUE OF THE PRIZE(S)
It’s compulsory to check each countries’ rules regarding prizes. For instance…
>> In Turkey: it’s forbidden to use alcoholic drinks and cash as prizes.
>> In Japan: if the promotion is linked to purchase, there are strict rules to
be followed regarding the single prize value and the total prize pool.
4. TAXES
Each country has its own rules regarding taxes on prizes. Tax Obligations may
depend on the mechanic as well as on the value of the prizes. E.g.
>> In Spain: taxes are always due for prizes awarded in «concursos» and
«sorteos», but their amount depends on the mechanic of the promotion. Also,
taxes may be due in case of gift with purchase promotions.
>> In Austria: prize promotions based on chance are subject to a tax in the
amounts of 5 % of the prize , payable if the annual tax amount is EUR 500 or
higher.

8. PROMOSFERA Srl - Via G. Giusti 65/A, 21019 – Somma Lombardo (VA) - Tel-Fax 0331 252144 - P.I. 02250050024
5. ADV MATERIALS / COMMUNICATION
In many countries, specific Laws apply to prize promotions Advertising. For
example:
>> In Belgium: it’s mandatory to communicate the promotion both in
French and Dutch.
>> In the USA: it’s necessary to state on ADV/POS materials «NO
PURCHASE NECESSARY».
6. PRIVACY
Each country has its own Privacy laws and rules. For example:
>> In Spain: the promoter handling personal data locally, must have a
«Fichero» registered before the Spanish AEDP.
>> In Europe: when you run a promotion in many countries, you must
respect the law of the country where data are handled.

9. PROMOSFERA Srl - Via G. Giusti 65/A, 21019 – Somma Lombardo (VA) - Tel-Fax 0331 252144 - P.I. 02250050024
RUNNING ONE PRIZE-PROMOTION IN MANY COUNTRIES: HOW TO…?
There is more than one way to run a prize-promotion in many countries.
The most common solutions are the following:
1.MULTI-COUNTRY PROMOTION
2.«CLUSTER» SOLUTION
3.GLOBAL PROMOTIONS “IN THE CLOUDS”
The choice of the best way depends on many aspects, such as the
mechanic of the promotion, the countries involved, etc…

10. PROMOSFERA Srl - Via G. Giusti 65/A, 21019 – Somma Lombardo (VA) - Tel-Fax 0331 252144 - P.I. 02250050024
ABOUT US
Promosfera is an marketing agency specializing in international prize
promotions administration. We are an experienced team with a very strong
multidisciplinary preparation focused on marketing, communication, law
and economics. We offer complete solutions for Sweepstakes and Contests
administration in more than 40 countries.
Our services include:
1. Preliminary advice on promotion feasibility
2. Consultancy on prize promotions and on tax obligations;
3. Promotion compliance, incl. drafting Full T&Cs;
4. Winners management
5. Prizes management and fulfilment

11. PROMOSFERA SRL - Via G. Giusti 65/A, 21019 – Somma Lombardo (VA) - Tel-Fax 0331 252144 - P.I. 02250050024
For further information,
please don’t hesitate to contact us!
www.promosfera.com
international@promosfera.com