Prize Events: New FAQs Published by the Ministry of Enterprises and Made in Italy

Contents

The Ministry of Enterprises and Made in Italy (formerly MISE) has recently updated the FAQs relative alle FAQs related to prize events, making significant changes in the section regarding prize events, with a purchase condition that involve online transactions through servers located abroad (FAQ No. 6) and in the section regarding the association of social network managers, eliminating the obligation of association for contests that exclusively use such platforms as a participation tool (FAQ No. 7).

In detail, the Ministry has clarified that any business, even if not part of the European Union and without a headquarters in Italy, wishing to organize an online prize event in Italian territory can use any platform, even located abroad, for collecting participant data. However, it is essential that the elimination phases, winner identification operations, and prize awards take place in Italy. This requirement is motivated by national regulations and the need to ensure the legitimacy of interventions by relevant authorities, as established by Article 1, paragraph 6, and Article 9 of the Presidential Decree of October 26, 2001, No. 430 (“Prize Regulation”).

Consequently, it is mandatory for the server operating the software for managing preference systems, random selection, user interaction, and similar functions to be located in Italian territory. The promoter of the promotional initiative must ensure the secure transfer of data necessary for winner identification activities (such as participant proofs/games, extraction operations). The subsequent prize awards must take place on an Italian server through mirroring or equivalent system. This procedure must be documented in accordance with Article 9, paragraph 1, of the Prize Regulation, through the submission of a technical expert report. This report must be made available to guarantee figures (such as the notary or the delegate of the competent Chamber of Commerce for the territory) who must be present during the prize awards. It is understood that the promoter of the event must specify in the regulations of the event itself their assumption of responsibility if – in case of disputes – they are unable to demonstrate that the system has functioned correctly and that any damages are not attributable to them.

The Ministry has also clarified that given the current spread of social media, prior registration on social networks is no longer mandatory compared to the start date of a prize competition that involves the use of such technologies, even as the only participation channel. The social network must always be associated, however, if in a phase of the contest mechanics the registered user is favored over those who only use “non-social” participation channels.

The FAQs from the Ministry of Enterprises and Made in Italy represent a significant step towards simplifying and adapting regulations related to prize events in the digital age. By allowing the use of foreign platforms for data collection and removing the obligation to register on social networks, the Ministry has demonstrated an understanding of modern dynamics and the globalization of digital services. However, compliance with Italian laws in terms of prize management and allocation remains essential, ensuring transparency and legitimacy in every phase of the competition. These changes not only facilitate the organization of international contests but also ensure that activities are conducted in accordance with Italian regulations, protecting the rights of participants and maintaining a high standard of trust and security in prize events.

Date
Speak to our experts