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

Promotion laws are always changing, and brands rolling out sweepstakes campaigns across multiple countries must stay up to date to ensure compliance

This requires ongoing regulatory watch, with marketers closely monitoring developments in advertising, privacy, and consumer protection regulations when structuring their promotions.

We’ve been keeping an eye on the recent changes in international sweepstakes regulations, and here’s a quick summary of what’s happened over the last month.

Italy targets influencer transparency rules

Italy has continued expanding its oversight of influencer marketing following several high-profile controversies involving undisclosed sponsorships and misleading promotions.

Early this month, AGCOM started the second phase of Resolution No. 7/24/CONS, which requires influencers to register in the AGCOM Registry of Communications Operators. At the moment, this affects influencers with at least 500,000 followers or 1 million monthly views.

The updated influencer guidelines introduce co-liability for brands and marketers. While the previous code mainly targeted influencers, brands will now be presumed responsible for misleading communication by their influencers.

If you’re working with influencers on international sweepstakes campaigns, you need to ensure the creator complies with the code. You should carefully review influencer contracts, disclosure language, and campaign approval processes before launching a sweepstakes campaign in the country.

UK: CMA issues first fines for drip pricing under new enforcement powers

The Competition and Markets Authority (CMA) in the UK issued its first financial penalties for violations under its new enforcement powers.

In mid April, the regulator ordered AA to pay a £4.2 million fine for violating its drip pricing laws. The verdict came after the regulator found that AA Driving School and BSM Driving School, both owned by the AA, had failed to include a mandatory £3 fee in their online booking prices.

When marketing sweepstakes or giveaways in the UK, you must ensure that all unavoidable redemption costs are disclosed. This can include anything from shipping costs to subscription tie-ins and prize redemption fees.

Iowa sweepstakes oversight bill becomes law

Iowa became the latest US state to pass a bill targeting sweepstakes gambling. The new law hands the Iowa Racing and Gaming Commission (IRGC) the power to issue cease-and-desist orders to unlicensed dual-currency operators.

On May 15, 2026, Gov. Kim Reynolds signed Senate File 2289, and the bill will officially take effect July 1, 2026. Iowa has taken a different approach from Montana and other US states that have passed a sweeping ban on sweepstakes gambling. Instead, the state has armed its regulator.

Marketers or brands planning sweepstakes campaigns targeting Iowa residents must ensure the campaign rules and free alternative methods of entry (AMOE) are fully audited and compliant before the July deadline. This will help ensure promotions are not mistakenly flagged under the state’s broadened definition of unregulated gaming.

Australia targets “dark patterns”

In Early May, the Australian parliament passed the Competition and Consumer Amendment (Unfair Trading Practices) Bill 2026, granting the Australian Competition and Consumer Commission (ACCC) expansive powers to levy large financial penalties against companies that use “dark patterns”.

According to the ACCC, some marketing campaigns use sweepstakes as a “hook” to exploit consumer behavioral biases. The bill targets promotions that offer free draws that require users to enter their credit card or sign up for a trial.

The new law also targets marketers who use urgency mechanisms like countdown timers and live progress bars, implying that the prize pool is running out to trick consumers into taking immediate action.

Why brands should monitor regulatory developments

Promotions and contest laws are always changing, and many of the updates don’t make headlines. On top of that, these laws rarely change in isolation.

New consumer protection, privacy, and advertising regulations can affect your promotion. A campaign that appears compliant from a sweepstakes perspective may still face problems if disclosures are unclear or influencer partnerships are improperly labeled.

Need help managing international sweepstakes?

Promosfera can help you stay compliant in every market you target. Our team has experience running campaigns in more than 85 countries, and you can rely on our expertise to ensure your campaign is successful.