Do you know the techniques to ensure legal compliance in the development of sweepstakes on websites and social networks? We show you how to keep your online sweepstakes legal.
The legality of online sweepstakes
Promotions in webs and social networks are one of the main pillars of the commercial strategies of the brands. Sweepstakes’ organizers must know how to run online sweepstakes without breaking the law.
That is the reason why the legal bases that regulate the promotion constitute a fundamental part of the sweepstakes. These bases must be always available to users so those who want to participate and wish to read these legal bases can consult them at any time.
GDPR and online sweepstakes
The new legislation on data protection also affects the development of online sweepstakes, especially regarding consent.
The General Data Protection Regulation (GDPR) offers several ways to apply a solid legal basis related to data processing. Consent is the most used legal basis in the digital environment. Consent is reinforced by the RGPD and must be free, specific, informed and unequivocal, consisting of a declaration or clear affirmative action, not admitting tacit consent.
In this sense, those sweepstakes in which organizers collect personal data of the participants have to implement all the requirements established by the GDPR.
5 things you should know
In addition to the legal bases, there are other points to be taken into account at a legal level by organizers.
RANDOM SELECTION SYSTEM
You need to use a tool that randomly selects winners from among all the participants. Some people use a computer program, who gives a number to each competitor and is based on the result of certain games.
It is important to present a certificate of validity that reports the conditions in which the sweepstakes has been made and its result.
If your promotion is developed or disseminated in a social network, you must also take into account the specific regulations of that platform and see how it regulates it through its different policies and conditions.
The organizer is responsible for:
- Comply with the legislation of the geographical area where it applies.
- Comply with the regulations of the social network where it applies.
- Comply with the legal bases that the organizer has defined by his sweepstakes.
Another issue that we must take into account when conducting an online sweepstakes is its taxation. Pursuant to the Spanish Gaming Law, promotional sweepstakes are taxed at a rate of 10% of the value of the prize given, provided that the sweepstakes is based on random combinations for advertising or promotional purposes.
Letslaw is a law firm specialized in digital law and new technologies. If you need more information about how to legally run an online sweepstakes, please contact us at firstname.lastname@example.org or 914 323 772