Regulatory Watch: your brief on promotions and contest law developments across markets

Global regulators are pushing hard to curb sneaky marketing tactics. If you’re getting ready to launch international sweepstakes, you’ll need a much more delicate approach in most markets

From North America to Europe and the Asia Pacific, regulators are targeting companies that use hidden fees, confusing user journeys, and buried disclaimers to encourage customers to sign up or make a purchase. We’ve spent the last month tracking these new laws to see exactly how they will impact your next campaign.

FTC $35 million fine over deceptive sign-up practices

The US Federal Trade Commission (FTC) fined Shutterstock $35 million for charging consumers for products without their informed consent. The federal agency also accused the company of making it difficult to cancel subscriptions.

This recent action has put companies that automatically bundle paid, recurring subscriptions into ‘free entry’ contests or sweepstakes sign-ups on notice. If you want to transition a user from a contest to a paid subscription, you must now use completely separate, clear, opt-in checkboxes.

South Korea imposes stricter financial penalties for deceptive Ads

If you have an active campaign in South Korea, then you need to pay closer attention to the new Act on Fair Labeling and Advertising. The new regulation targets businesses that repeatedly run promos that mislead consumers.

To avoid legal trouble, audit disclosure texts to ensure compliance and avoid the newly doubled fines under the new regulations.

Bolivia scraps gaming tax for promotions

Bolivia is going in the opposite direction. Instead of banning or severely restricting sweepstakes, the country is slashing the red tape. The newly passed Tax Relief Law No. 1733 removes giveaways from the control of the Gaming Control Authority, making it easier for businesses to launch promotions and contests.

The new law removes the 10% gaming tax and removes the need for brands to obtain government permission to launch a campaign. However, this only applies to new promotions. If you already have a running promo in the country, it has to stick to the old rules.

Louisiana signs HB 53 targeting dual-currency sweepstakes

Meanwhile, Louisiana is cracking down on online dual-currency sweepstakes. Governor Jeff Landry just signed House Bill 53 into law, further constricting the state’s definition of racketeering.

The law takes effect on August 1, 2026.

Companies using a “sweeps coins” model, need to geo-block Louisiana users. Otherwise, they’ll be giving local prosecutors a massive amount of leverage.

The recent developments in Louisiana signal a wider trend across the United States, as more states start pushing back against dual-currency sweepstakes. If you’re running sweepstakes promotions in Louisiana, you need to review your campaigns before the August deadline.

Protect your brand

Today, running unverified marketing campaigns is a massive risk. You not only risk massive fines but also your brand reputation. A campaign that works perfectly in one country might completely break anti-dark pattern laws or subscription rules in another. And the result is almost always heavy financial damage.

Staying compliant across different borders might require partnering with specialist companies like Promosfera that know these rule changes inside out.

Need help managing international sweepstakes?

Our team at Promosfera can help you run successful sweepstakes across Europe, the Americas, Africa, the Middle East, and the Asia Pacific.