Regulatory watch on international sweepstakes: July prize promo brief

What brands and marketers need to know about international prize promotion rules in 2025

Considering the strict nature of promo rules and the fact that they change from one country to another, brands and marketers need to ensure they stay updated with any new changes. Otherwise, you risk falling into the trap of non-compliance, which can be costly in both financial and reputational terms.

To help global brands stay ahead of these ever-changing international sweepstakes regulations, we’ve pieced together the major changes that have happened in June and July. They range from stricter promotion controls to specific items you can no longer promote via influencers.

What’s new in international sweepstakes regulations (July 2025)

Here’s a look at the major changes you should keep in mind or look out for in the fourth quarter.

France: a new law to bring clarity to online promotions

One key market to watch is France, which is currently reviewing its online promotions regulations. The proposed law, n° 24-412, was presented to the Senate in March 2025 and is currently undergoing committee review. It will soon be publicly debated and probably become law.

The new bill aims to address a legal “gray area” in the current online promotion regulations. Considering today’s complexity in online marketing, the law will set clear, explicit rules that govern everything from game mechanics to terms and conditions.

The bulk of the changes are in transparency and fairness, so proactive brands can start reviewing their practices in view of this new regulatory push.

France: fast fashion restrictions extend to promotional campaigns

Still in France, there’s a new law that was passed in June 2025 that regulates the fast fashion industry. The law focuses on the environmental aspect of quickly moving clothing items from brands like Shein and Temu, but it was expanded to cover advertising.

The legislation proposes a complete ban on advertising for these fashion programs, which applies to both traditional and online promotions. Non-compliance fines go as high as €100,000.

Key considerations for global prize promotion rules

As you draft your campaigns, here are a few key areas you need to double-check to ensure compliance with international sweepstakes regulations.

Jurisdictional eligibility clauses

This basically includes the people who can participate and from where. It’s the first item you need to check when preparing your international campaign, as “global” doesn’t really mean every country.

Only target countries whose regulations you’ve ensured contest law compliance. Some regions, countries, or states may be difficult to cover, so you need to clearly state qualifying countries or expressly exclude residents of certain states.

For example, if you are running your promotion in Argentina, be keen on the provinces that require local registration.

Local prize tax laws

In most countries, the prizes you award are taxable. However, the specific amount for qualification varies by country or state. For example, in the US, you need to issue a 1099-MISC form if the prize is above $600. In India, you are required to deduct a 30% tax if the prize is ₹10,000 or more.

These are just two examples that show how these regulations vary. Ensure you follow all set-out requirements to avoid regulatory fines.

GDPR, LGPD, CCPA… and counting

Data handling and privacy laws are a key part of global prize promotion rules, so you need to ensure your infrastructure is set up with compliance in mind.

Ensure that you treat data collected from different regions in different ways. For example, if your campaign is in the EU, start with explicit consent (not pre-ticked boxes). You are then expected to only collect data you actually need, state how you’ll use it, and give the user control. Different regulations, such as the LGPD (Brazil), CCPA (California), and PIPEDA (Canada), also have similar guidelines you need to abide by.

Ensuring compliance with all these different aspects of international sweepstakes can be difficult for individual brands, but you can reach out to an international promotions agency, as these have the necessary expertise.

Need help navigating international sweepstakes regulations?

Partner with Promosfera to review your Q4 campaigns before launch. We have been handling global promotions for over 19 years, so we know the ins and outs of a successful international campaign.