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International Prize Promotions

Sonia Travaglini
Sonia Travaglini

Running an International Sweepstake or Contest is a very popular way for Companies to engage with consumers. If you're thinking about running a prize promotion open to one or more countries, don't hesitate to look at this presentation and to contact us!

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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
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
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
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 isnt any unique law regarding 束International Prize Promotions損: 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
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?
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 countrys 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
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) Its compulsory to check each countries rules regarding prizes. For instance >> In Turkey: its 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 束concursos損 and 束sorteos損, 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.
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: its mandatory to communicate the promotion both in French and Dutch. >> In the USA: its necessary to state on ADV/POS materials 束NO PURCHASE NECESSARY損. 6. PRIVACY Each country has its own Privacy laws and rules. For example: >> In Spain: the promoter handling personal data locally, must have a 束Fichero損 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.
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.束CLUSTER損 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
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
PROMOSFERA SRL - Via G. Giusti 65/A, 21019 Somma Lombardo (VA) - Tel-Fax 0331 252144 - P.I. 02250050024 For further information, please dont hesitate to contact us! www.promosfera.com international@promosfera.com

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International Prize Promotions

  • 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 isnt any unique law regarding 束International Prize Promotions損: 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 countrys 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) Its compulsory to check each countries rules regarding prizes. For instance >> In Turkey: its 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 束concursos損 and 束sorteos損, 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: its mandatory to communicate the promotion both in French and Dutch. >> In the USA: its necessary to state on ADV/POS materials 束NO PURCHASE NECESSARY損. 6. PRIVACY Each country has its own Privacy laws and rules. For example: >> In Spain: the promoter handling personal data locally, must have a 束Fichero損 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.束CLUSTER損 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 dont hesitate to contact us! www.promosfera.com international@promosfera.com