How to Run a Legally Compliant Giveaway in Europe

Navigating cross-border giveaway laws in Europe and internationally

Giveaways have become increasingly popular as they are a great way to boost engagement, grow audience, and promote a brand. If you are interested in running one, the process looks quite simple from the outside – pick a prize, get people to enter, and choose a winner.

However, if you want it to operate across different European countries, the process can quickly get complicated. Different countries in the region have different giveaway rules, and if you don’t follow them, you may face fines or have your giveaway shut down.

So, how can you ensure legal compliance in different European countries while still guaranteeing the success of the campaign? We’ll break this down into the key considerations.

Organizing a prize promotions in the European Union: local laws and EU directives

In Europe, giveaways are under a mix of laws in consumer protection, gambling, and data privacy.

One key piece of legislation in this area is the EU Directive 2000/31/EC, known as the E-Commerce Directive, which establishes a regulatory framework for digital services within the European single market.

It allows companies to organize online prize promotions accessible to EU residents without needing to comply with different national regulations, although additional precautions may be required in countries with stricter laws. Furthermore, while the directive facilitates cross-border participation, it remains the participants’ responsibility to ensure compliance with their country’s laws.

Overall, this Directive promotes the free movement of digital services while ensuring transparency and consumer protection.

Giveaways generally involve collecting personal data such as names, email addresses, and/or social media handles. In Europe, the handling of these is regulated by the General Data Protection Regulation (GDPR), and all entities targeting European residents must comply with it. Otherwise, you’ll end up with hefty fines.

Here’s a quick rundown on what you need to do to ensure GDPR compliance when planning European promotions:

Clearly state what data you’re collecting and why – In the terms and conditions, clearly outline the data you’ll collect and how you’ll use it.
Obtain explicit consent – The participants need to check a box to allow the collection of personal data. Vague statements like “By entering, you agree to our terms” aren’t enough.
Limit data collection to what’s necessary – Only collect the data you need for your marketing efforts. Unless a person is a winner, you don’t need a mobile number or address.
Allow participants to opt out or request deletion – GDPR gives users the right to access, correct, or delete their data at any time. Ensure it’s easy to do so.
Keep data secure and don’t share it without permission – All collected data must be stored securely and protected from breaches. Also, don’t share it with other parties.
Have a privacy policy in place – As per the GDPR, you need to have a detailed privacy policy on how data is collected, stored, and used.

Note that the GDPR applies whether you are based in Europe or not and whether you are only targeting EU residents or global participants.

Follow country-specific laws

Ensuring that entry is free and winning is random will give you a bit of cover, but you’ll still need to comply with specific laws in different European countries.

For example, if you run a skill-based promotion in France, the winner must be selected by a jury of judges on an impartial basis. In Spain, chance-based promotions attract a tax equal to 10% of the total value of the prizes.

You need to go through the laws of each country you want to operate in and ensure compliance with the regulations and tax laws.

Write clear terms & conditions

When running Europen promotions, you must have clear and legally sound Terms and Conditions to protect both you and the participants. These should clearly outline how your giveaway works, ensuring that the participants are fully aware of everything.

In your T&Cs, clearly outline the eligibility requirements, entry rules, operational dates, prize details, winner selection and announcement, publicity disclosure, and legal disclaimers.

If in doubt of everything you should include and the various legal compliance requirements, consider consulting an international giveaway agency as it will have specialists in the different key areas.

A well-run giveaway builds trust and engagement, but legal missteps can result in the opposite, with hefty fines and negative publicity. Promosfera specializes in international giveaways, and we can help you stay compliant with the different laws and regulations in Europe while ensuring the success of your campaign.