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PROMOSFERA SRL- Via G. Giusti 65/A, 21019 – Somma Lombardo (VA) - Tel-Fax 0331 252144 - P.I. 02250050024
SWEEPSTAKES AND
CONTESTS IN ITALY
How to organize a prize
promotion
in a safe and legal way
Updated version – June 2017
BACKGROUND
In Italy, prize promotions are strictly regulated by Presidential Decree n.
430/2001.
Under the Decree a Prize Promotion is a public promise of a prizes made by a
company with the purpose of promoting services and brands or selling their
products or services.
PROMOSFERA SRL- Via G. Giusti 65/A, 21019 – Somma Lombardo (VA) - Tel-Fax 0331 252144 - P.I. 02250050024
Prize Promotions include:
➢ Contests / Competitions
➢ Prize draws /
Sweepstakes
➢ Gift with Puchase
➢ Trade incentive
To organize a safe Prize Promotion in Italy
companies must comply with local laws and regulations
AUTHORITIES’ CONTROLS
MAY RESULT
IN EXPENSIVE FINES
PROMOSFERA SRL- Via G. Giusti 65/A, 21019 – Somma Lombardo (VA) - Tel-Fax 0331 252144 - P.I. 02250050024
PROMOSFERA SRL- Via G. Giusti 65/A, 21019 – Somma Lombardo (VA) - Tel-Fax 0331 252144 - P.I. 02250050024
ITALIAN LAWS – KEY
INFORMATION
What you need to know
about DPR 430/2001
N° 1: PROMOTER
The promoter of the prize promotion must be a company registered in Italy.
Foreign companies not having offices in Italy, can organize prize promotions
through their Italian VAT fiscal representative
… or through direct identification system.
N° 2: APPOINTED AGENCY
Companies can appoint a promotional agency to take care of all
the necessary local obligations required by law ( e.g. filing of the
documents and requiring the insurance policy for the promotion).
Promotional agencies cannot act as “promoters”.
PROMOSFERA SRL- Via G. Giusti 65/A, 21019 – Somma Lombardo (VA) - Tel-Fax 0331 252144 - P.I. 02250050024
N°3: NOTIFICATION TO AUTHORITIES
Italian law requires Prize Draws and Competitions must be notified to
Authorities at least 15 days* before the promotion starts; a promotion is
deemed to be “started” since it is publicly announced.
N°4: PRIZE-BOND OBLIGATION
For Prize Draws and Competitions the 100%* value of the prize pool must be
guaranteed by an Insurance/Bank Bond. Copy of this guarantee must be sent
to Authorities along with the full T&Cs during promotion notification;
PROMOSFERA SRL- Via G. Giusti 65/A, 21019 – Somma Lombardo (VA) - Tel-Fax 0331 252144 - P.I. 02250050024
*) Depending on the mechanic, also Gift
with Purchase promotions and Trade
incentives may have to be notified to
authorities and guaranteed with prize
bond (20% on the prize value)
N°5: OBLIGATIONS FOR ONLINE PROMOTIONS
In case of online Prize Promotions, the server collecting the entries must be
located in Italy. If the server is abroad, the registrations must be mirrored
real time from the external server to the Italian server.
Also, the software collecting entries must be duly certified through a
Technical Affidavit signed by the developer.
N°6: WINNERS’ SELECTION
Winners must always be selected at the presence of
a Notary/Public Officer who supervises the whole
winners’ selection procedure.
In case of Instant win promotion, the Notary/Public
Officer will need to be met to certify the official
winners list.
PROMOSFERA SRL- Via G. Giusti 65/A, 21019 – Somma Lombardo (VA) - Tel-Fax 0331 252144 - P.I. 02250050024
N°7: PRIZES DELIVERY AND CHARITY
Prizes must be delivered to winners for free within 180 days from official
assignment;
Prizes which result to be not claimed or not assigned must be delivered to the
Charity mentioned in the T&Cs.
Winners shall not incur in any costs for claiming or using
their prizes. Authorities provided extensive examples of
which services can be included/excluded in case of trips;
PROMOSFERA SRL- Via G. Giusti 65/A, 21019 – Somma Lombardo (VA) - Tel-Fax 0331 252144 - P.I. 02250050024
N°8: OFFICIAL CLOSURE
Prize Promotions (Sweepstakes and Contests) must be “closed” officially at
the presence of a Notary or of a Public Officer who is required to verifies
that all the prizes have been given away according to the T&Cs;
N°9: TAX OBLIGATIONS
Taxes on prizes and fiscal duties are on the Promoter’s responsibility.
These have to be paid directly by the promoter or its fiscal representative:
25% (withholding tax) calculated on the net value of the prize
+
– VAT not deductible for invoices issued for prizes
PROMOSFERA SRL- Via G. Giusti 65/A, 21019 – Somma Lombardo (VA) - Tel-Fax 0331 252144 - P.I. 02250050024
N°10: INTERNATIONAL PRIZE PROMOTIONS
PROMOSFERA SRL- Via G. Giusti 65/A, 21019 – Somma Lombardo (VA) - Tel-Fax 0331 252144 - P.I. 02250050024
Thanks to the application of the most recent European Guidelines, the
approach of Italian authorities to international prize promotions is changed.
As a result, involving Italy in pan-european promotions is now
becoming a possibility.
Legal feasibility must be always checked case-
by-case, evaluating the target, on the entry
mechanic and on planned advertising.
PROMOSFERA SRL- Via G. Giusti 65/A, 21019 – Somma Lombardo (VA) - Tel-Fax 0331 252144 - P.I. 02250050024
THE ROLE OF ITALIAN
AUTHORITIES
Controls and fines
PROMOSFERA SNC - Via G. Giusti 65/A, 21019 – Somma Lombardo (VA) - Tel-Fax 0331 252144 - P.I. 02250050024
THE ROLE OF AUTHORITIES
Competent authorities for Prize Promotions in Italy:
DEPARTMENT OF ECONOMIC DEVELOPMENT
Authorities are always allowed to make controls on Prize Draws and
Competitions and to issue sanctions in case of violations.
Authorities may act on their own initiative or, more often, on other companies
(e.g. competitors) and consumer request;
Consumers in Italy are very sensitive
about prize promotions and don’t
hesitate to contact authorities to
defend their rights
PROMOSFERA SNC - Via G. Giusti 65/A, 21019 – Somma Lombardo (VA) - Tel-Fax 0331 252144 - P.I. 02250050024
RISKY SITUATIONS
Authorities are very strict in checking and issuing sanctions, so it’s highly
recommended to abide by the rules and guidelines to avoid any risk of being
fined.
Examples of high risk situations (non-exhaustive list):
• Having the server collecting entries not based in Italy and not mirrored;
• Having the promotional website is temporary unavailable or not
properly working;
• Not delivering prizes as stated in the T&Cs and/or within 180 days;
• Cancelling or postponing the promotion after having announced it
• Selecting winners in a different way than what stated in the T&Cs (e.g.
instant win not working properly/not involving public officer)
FINES
Further to a recent update, applicable sanctions for non-compliance are:
• from €2.000 to €10.000 in case of late communications to the
authorities (reduced sanction amounts to 870 € if paid within 30
days)
• from 1 to 3 times the VAT on the total value of the
prizes (min. applicable sanction: 2.582,28 €) in case of
violation of the Laws on Prize Promotions.
• from €50.000 to €500.000 in case of violation of the
Laws relating to lotteries and state monopoly
PROMOSFERA SRL- Via G. Giusti 65/A, 21019 – Somma Lombardo (VA) - Tel-Fax 0331 252144 - P.I. 02250050024
PROMOSFERA Srl www.Promosfera.it-
Legal
Microsites & POP Winners management
Prizes
ABOUT US
A dedicated and compact team with a strong
multidisciplinary background in marketing,
communication, law and economics.
We offer our customers highly
reliable, comprehensive solutions for
managing competitions, draws and prize-
based promotions in many EU and non-EU
countries. We have run promotions in over
40 European and extra-European countries.
We provide direct assistance in English,
Spanish, German and French.
Email: info@promosfera.it - www.promosfera.it
PROMOSFERA Srl – www.Promosfera.it- Tel +39 (0)331 252144
Hvala!
@Promosferaint
Promosfera
Promosferawww.promosfera.it
Sonia Travaglini
international@promosfera.c
om
PROMOSFERA SRL - Via G. Giusti 65/A, 21019 – Somma Lombardo (VA) – Tel +39 (0) 331 252144
promosfera.it/newsletter

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Sweepstakes and Contest in Italy

  • 1. PROMOSFERA SRL- Via G. Giusti 65/A, 21019 – Somma Lombardo (VA) - Tel-Fax 0331 252144 - P.I. 02250050024 SWEEPSTAKES AND CONTESTS IN ITALY How to organize a prize promotion in a safe and legal way Updated version – June 2017
  • 2. BACKGROUND In Italy, prize promotions are strictly regulated by Presidential Decree n. 430/2001. Under the Decree a Prize Promotion is a public promise of a prizes made by a company with the purpose of promoting services and brands or selling their products or services. PROMOSFERA SRL- Via G. Giusti 65/A, 21019 – Somma Lombardo (VA) - Tel-Fax 0331 252144 - P.I. 02250050024 Prize Promotions include: ➢ Contests / Competitions ➢ Prize draws / Sweepstakes ➢ Gift with Puchase ➢ Trade incentive
  • 3. To organize a safe Prize Promotion in Italy companies must comply with local laws and regulations AUTHORITIES’ CONTROLS MAY RESULT IN EXPENSIVE FINES 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 ITALIAN LAWS – KEY INFORMATION What you need to know about DPR 430/2001
  • 5. N° 1: PROMOTER The promoter of the prize promotion must be a company registered in Italy. Foreign companies not having offices in Italy, can organize prize promotions through their Italian VAT fiscal representative … or through direct identification system. N° 2: APPOINTED AGENCY Companies can appoint a promotional agency to take care of all the necessary local obligations required by law ( e.g. filing of the documents and requiring the insurance policy for the promotion). Promotional agencies cannot act as “promoters”. PROMOSFERA SRL- Via G. Giusti 65/A, 21019 – Somma Lombardo (VA) - Tel-Fax 0331 252144 - P.I. 02250050024
  • 6. N°3: NOTIFICATION TO AUTHORITIES Italian law requires Prize Draws and Competitions must be notified to Authorities at least 15 days* before the promotion starts; a promotion is deemed to be “started” since it is publicly announced. N°4: PRIZE-BOND OBLIGATION For Prize Draws and Competitions the 100%* value of the prize pool must be guaranteed by an Insurance/Bank Bond. Copy of this guarantee must be sent to Authorities along with the full T&Cs during promotion notification; PROMOSFERA SRL- Via G. Giusti 65/A, 21019 – Somma Lombardo (VA) - Tel-Fax 0331 252144 - P.I. 02250050024 *) Depending on the mechanic, also Gift with Purchase promotions and Trade incentives may have to be notified to authorities and guaranteed with prize bond (20% on the prize value)
  • 7. N°5: OBLIGATIONS FOR ONLINE PROMOTIONS In case of online Prize Promotions, the server collecting the entries must be located in Italy. If the server is abroad, the registrations must be mirrored real time from the external server to the Italian server. Also, the software collecting entries must be duly certified through a Technical Affidavit signed by the developer. N°6: WINNERS’ SELECTION Winners must always be selected at the presence of a Notary/Public Officer who supervises the whole winners’ selection procedure. In case of Instant win promotion, the Notary/Public Officer will need to be met to certify the official winners list. PROMOSFERA SRL- Via G. Giusti 65/A, 21019 – Somma Lombardo (VA) - Tel-Fax 0331 252144 - P.I. 02250050024
  • 8. N°7: PRIZES DELIVERY AND CHARITY Prizes must be delivered to winners for free within 180 days from official assignment; Prizes which result to be not claimed or not assigned must be delivered to the Charity mentioned in the T&Cs. Winners shall not incur in any costs for claiming or using their prizes. Authorities provided extensive examples of which services can be included/excluded in case of trips; PROMOSFERA SRL- Via G. Giusti 65/A, 21019 – Somma Lombardo (VA) - Tel-Fax 0331 252144 - P.I. 02250050024
  • 9. N°8: OFFICIAL CLOSURE Prize Promotions (Sweepstakes and Contests) must be “closed” officially at the presence of a Notary or of a Public Officer who is required to verifies that all the prizes have been given away according to the T&Cs; N°9: TAX OBLIGATIONS Taxes on prizes and fiscal duties are on the Promoter’s responsibility. These have to be paid directly by the promoter or its fiscal representative: 25% (withholding tax) calculated on the net value of the prize + – VAT not deductible for invoices issued for prizes PROMOSFERA SRL- Via G. Giusti 65/A, 21019 – Somma Lombardo (VA) - Tel-Fax 0331 252144 - P.I. 02250050024
  • 10. N°10: INTERNATIONAL PRIZE PROMOTIONS PROMOSFERA SRL- Via G. Giusti 65/A, 21019 – Somma Lombardo (VA) - Tel-Fax 0331 252144 - P.I. 02250050024 Thanks to the application of the most recent European Guidelines, the approach of Italian authorities to international prize promotions is changed. As a result, involving Italy in pan-european promotions is now becoming a possibility. Legal feasibility must be always checked case- by-case, evaluating the target, on the entry mechanic and on planned advertising.
  • 11. PROMOSFERA SRL- Via G. Giusti 65/A, 21019 – Somma Lombardo (VA) - Tel-Fax 0331 252144 - P.I. 02250050024 THE ROLE OF ITALIAN AUTHORITIES Controls and fines
  • 12. PROMOSFERA SNC - Via G. Giusti 65/A, 21019 – Somma Lombardo (VA) - Tel-Fax 0331 252144 - P.I. 02250050024 THE ROLE OF AUTHORITIES Competent authorities for Prize Promotions in Italy: DEPARTMENT OF ECONOMIC DEVELOPMENT Authorities are always allowed to make controls on Prize Draws and Competitions and to issue sanctions in case of violations. Authorities may act on their own initiative or, more often, on other companies (e.g. competitors) and consumer request; Consumers in Italy are very sensitive about prize promotions and don’t hesitate to contact authorities to defend their rights
  • 13. PROMOSFERA SNC - Via G. Giusti 65/A, 21019 – Somma Lombardo (VA) - Tel-Fax 0331 252144 - P.I. 02250050024 RISKY SITUATIONS Authorities are very strict in checking and issuing sanctions, so it’s highly recommended to abide by the rules and guidelines to avoid any risk of being fined. Examples of high risk situations (non-exhaustive list): • Having the server collecting entries not based in Italy and not mirrored; • Having the promotional website is temporary unavailable or not properly working; • Not delivering prizes as stated in the T&Cs and/or within 180 days; • Cancelling or postponing the promotion after having announced it • Selecting winners in a different way than what stated in the T&Cs (e.g. instant win not working properly/not involving public officer)
  • 14. FINES Further to a recent update, applicable sanctions for non-compliance are: • from €2.000 to €10.000 in case of late communications to the authorities (reduced sanction amounts to 870 € if paid within 30 days) • from 1 to 3 times the VAT on the total value of the prizes (min. applicable sanction: 2.582,28 €) in case of violation of the Laws on Prize Promotions. • from €50.000 to €500.000 in case of violation of the Laws relating to lotteries and state monopoly PROMOSFERA SRL- Via G. Giusti 65/A, 21019 – Somma Lombardo (VA) - Tel-Fax 0331 252144 - P.I. 02250050024
  • 15. PROMOSFERA Srl www.Promosfera.it- Legal Microsites & POP Winners management Prizes ABOUT US A dedicated and compact team with a strong multidisciplinary background in marketing, communication, law and economics. We offer our customers highly reliable, comprehensive solutions for managing competitions, draws and prize- based promotions in many EU and non-EU countries. We have run promotions in over 40 European and extra-European countries. We provide direct assistance in English, Spanish, German and French.
  • 16. Email: info@promosfera.it - www.promosfera.it PROMOSFERA Srl – www.Promosfera.it- Tel +39 (0)331 252144 Hvala!
  • 17. @Promosferaint Promosfera Promosferawww.promosfera.it Sonia Travaglini international@promosfera.c om PROMOSFERA SRL - Via G. Giusti 65/A, 21019 – Somma Lombardo (VA) – Tel +39 (0) 331 252144 promosfera.it/newsletter