PROVISIONAL MEASURE NO. 923/2020 ALLOWS PRIZE DRAWS ON TV STATIONS

On March 03, 2020, Provisional Measure No. 923/2020 was published in the Federal Official Gazette, promoting changes to Article 1 of Law No. 5,768 / 1971 - which regulates the free distribution of prizes by way of advertising by drawing prizes, gift certificate or contest - by allowing national local television networks to broadcast the drawing of prizes. 

Authorization may be granted separately to national local television networks or with other legal entities in the same group as these concessionary networks, provided that they are constituted under Brazilian law and are under the same parent company. 

National local television networks are defined by the Provisional Measure as those recognized by the National Telecommunications Agency (Anatel) and cover the set of content generating stations and respective national television broadcasting systems that disseminate the same basic programming - providing entertainment services to the public through internet applications, digital platforms or similar means. The free distribution of prizes by television stations was popular in the 1990s and was banned by a court decision in 1998 because it was considered harmful to the consumers. 

In order not to lose its validity, Provisional Measure No. 923/2020 must be approved by the National Congress for conversion into law within up to 120 days.