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Penalties for Banned Giveaways in Italy

Posted: Tue Dec 17, 2024 6:53 am
by Rajulk985
Fines for organizing illegal giveaways in Italy can be very high: from a minimum of 1,000 euros up to a maximum of 10,000 euros , which rises to 500,000 euros for prohibited events that circumvent the monopoly on games and bets.

The Ministry of Economic Development, on a sample basis or upon notification, can also decide to sanction bloggers or Instagrammers who do not comply with the law.

The case of Nicole Pallado, a beauty influencer who received a country wise email marketing list fine of 10,000 euros for organizing a giveaway by giving away a makeup palette to one of her followers, is very famous. This demoAlthough these terms are used as synonyms in common language, in reality there are some big differences, especially with regards to the Italian legislation that regulates them.

Let's see exactly what they are and the differences between contests, giveaways and freebies at a regulatory level and beyond.

Online Contest: Definition
Online contests , according to Italian law , fall within the classification of prize competitions . In fact, according to the Presidential Decree 430/2001, all those promises of prizes aimed at promoting knowledge of products, services and companies are contests .

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The attribution of the prizes up for grabs can depend on luck , which is realized in the random extraction of one or more winners among all the users who took part in the contest, but also on the ability of the participants to establish predictions or judgments related to certain events or on the speed of response . This specification brings us to one of the fixed points of online contests, that is, a defined number of winners compared to the total number of participants .

Therefore, all those initiatives that, in exchange for a specific action , offer one or more prizes to a selected number of people according to the game mechanics written in the competition rules are online contests .

Online contest example
We could give hundreds of examples of online contests and many ideas are present in the section dedicated to Leevia case studies . One above all could be the request, by a company, to upload a photo with a specific theme to participate in the final draw for one or more prizes up for grabs. Another example could be the request to upload a receipt, or to fill out a form, even with game mechanics borrowed from gamification , such as Spin & Win or Scratch & Win , in order to immediately discover whether or not one of the prizes up for grabs has been won ( Instant Win ).

In all these cases, even though the game mechanics are very different, the common thread is always a limited number of winners compared to the participating users.