Within the framework of prize promotions governed by Presidential Decree No. 430 of 26 October 2001, the security is not a mere bureaucratic formality, but one of the principal safeguards of the seriousness of the promotional initiative. The ministerial FAQs updated as of January 2024 confirm that this safeguard protects the actual delivery of the prizes promised and lies at the heart of the relationship among the promoter (the undertaking organising the initiative), consumers and the public administration. For businesses, this means that the manner in which the security is structured directly affects the feasibility of the campaign, its timing and the level of risk to which the initiative is exposed.
When the security is required
The first point to clarify is that, as a general rule, security is required for all prize promotions, both in prize operations, in which the prize is guaranteed to anyone who satisfies a given purchase condition, and in prize contests, in which the prize is awarded by drawing, competition or another selection mechanism. Security is dispensed with only in prize operations in which the prize is granted at the same time as the purchase of the product (for example, a free gift given immediately to the customer). Outside this scenario, the guarantee remains a mandatory requirement. In prize contests, moreover, the provision of security is mandatory even where the prize is awarded through immediate-win mechanics, the so-called instant win.
This distinction has immediate practical significance. Many marketing initiatives are still designed starting from the communication channel or the mechanism for engaging the public, without first asking whether the initiative is a prize contest or a prize operation, and whether the prize is genuinely linked to the purchase on an immediate basis. Without this preliminary assessment, the risk is not merely documentary, but concerns the very regulatory validity of the campaign.
Who the beneficiary is and which forms of guarantee are admissible
The FAQs clarify that the beneficiary of the security is the Ministry of Enterprises and Made in Italy, acting through the office competent for prize promotions. As to the admissible forms, the guarantee may be provided only in one of three ways: a bank guarantee, an insurance guarantee, or a provisional cash deposit. The fact that the cash deposit must be “provisional” is not a secondary detail. The FAQs specify that, if a definitive deposit is established by mistake, the promoter or its delegate must take steps to request rectification from the competent State Accounting Office: an error that may appear merely formal, but that in practice may significantly complicate the recovery of the sums paid. For this reason as well, the choice of the guarantee instrument should not be treated as a standardised formality, but as a decision calibrated to the structure of the initiative, the timetable of the campaign and the company’s internal processes.
How the security is calculated
From an economic standpoint, one of the most useful clarifications in the FAQs concerns the manner in which the security must be calculated. The security must be calculated on the indicative market value of the good or service constituting the prize, and not on the actual cost incurred by the promoter to acquire it, gross of any other charges and net of tax.
This point is particularly important for businesses offering products manufactured in-house, goods already in stock, or prizes purchased on particularly favourable commercial terms. In all such cases, the fact that the business already has the item available, or acquired it at a low price, does not reduce the obligation to guarantee the market value of the prize promised to the public. The mismatch between the cost incurred by the business and the value attributed by law to the prize is therefore a factor to be taken into account already at the stage of setting the promotion budget.
The FAQs further state that, where it is not possible to determine from the outset the overall value of the prizes to be awarded, the security may be calculated on an estimated basis, that is, by way of an advance estimate. In that case, the parameter may be determined by reference to similar previous promotions or to sales trends, increased by a percentage consistent with the incentive effect that the campaign is intended to generate. This is particularly useful guidance for initiatives in which the final number of prizes depends on participants’ behaviour, as in the case of points collections, purchase thresholds or mechanisms with variable redemption.
Amount of the guarantee: 20% or 100%
The ministerial FAQs reiterate a fundamental distinction that is often misunderstood in practice: in prize operations, the security is equal to 20% of the value of the prizes, net of VAT; in prize contests, by contrast, it must cover 100% of the value of the prizes, again net of VAT.
This difference in intensity explains why the security is also a strategic item in the choice of promotional mechanics. For the same commercial objective, a structure falling within the scope of a prize contest may require a significantly greater financial or insurance commitment than a prize operation. For the business, therefore, the legal classification of the mechanics is not a theoretical exercise, but a variable affecting the cost of compliance and, in turn, the sustainability of the initiative.
Timing: the real impact on go to market
Looking at business practice, it is precisely the timing issue that makes security a step with strong operational impact. For prize contests, the ministerial form CO/1, the contest rules and proof of payment of the security must be submitted at least fifteen days before the start date of the contest. The FAQs also clarify that the start date coincides with the moment when advertising for the initiative begins, that is, when the promise of the prize is communicated to the public, even if actual participation is envisaged for a later time.
This clarification is essential for marketing teams, agencies and in-house legal functions. In practice, the statutory time limit does not run from the first day on which participants may upload a receipt, register or take part, but from the first act of commercial communication that makes the promise of the prize public. The consequence is that delayed planning of the security may slow the launch of the campaign or expose the promoter to a sanctionable breach.
For prize operations, by contrast, the framework is more flexible. The FAQs clarify that, unless the interdirectorate decree of 5 July 2010 provides otherwise, the relevant formalities may be completed by the day preceding the start of the promotion, provided that the self-certification containing the rules has been authenticated and filed on an earlier date.
Submission of the guarantee and electronic filing channel
The documentation relating to the security must be transmitted through the ministerial PREMA online portal, together with the other required documents, provided that they have been digitised and digitally signed. The FAQs are unequivocal on this point as well: using different channels, except where the electronic system is unavailable, constitutes a sanctionable breach.
This is also a point that deserves attention from a commercial perspective. Today, a promotion is often developed in fragmented organisational environments, in which the content of the campaign is shaped among the brand, procurement, the agency, the technical platform and the fulfillment provider. In this context, properly controlling the documentary chain relating to the security means avoiding a situation in which an initiative that is formally ready is not yet actually capable of being launched from a regulatory standpoint.
Duration of the security and release
The FAQs clarify that the security must have a duration of not less than one year from the conclusion of the promotion. For prize contests, the conclusion coincides with the day on which the winners are identified, whereas for prize operations it coincides with the last day on which prizes may be claimed.
For prize contests, however, the guarantee may be deemed released even earlier, once 180 days have elapsed from the transmission to the Ministry of the closing report required by Article 9, paragraph 4, of Presidential Decree No. 430/2001. The FAQs specify that this automatic release mechanism applies only to guarantees and not to cash deposits: for the latter, a specific measure of the Ministry authorising the release is required.
From a practical standpoint, the message is clear: when opting for a guarantee, it is essential to verify in advance that its wording contains an automatic release clause compliant with ministerial guidance, in order to avoid unnecessary costs or requests to maintain the security beyond its expiry. The FAQs expressly invite businesses to pay attention to this issue.
Prize operations: the closing stage
For prize operations, the closing regime is simpler. The Ministry clarifies that, in order to obtain the release of the security, it is sufficient to submit a self-certification (a declaration in lieu of a notarised affidavit) by which the promoter attests to the proper conclusion of the operation and the delivery of the prizes to those who requested them within the applicable time limit. If the declaration is digitally signed, no signature authentication is required; if, however, it is transmitted by email without a digital signature, it must be accompanied by an identity document of the signatory.
Here again, a logic of substantive compliance emerges. The security does not safeguard only the originating stage of the promotional promise, but accompanies the entire life cycle of the initiative up to the documentary evidence of proper performance.
Risk profiles not to be underestimated
A coordinated reading of the FAQs leads to a precise conclusion. Errors concerning the security do not amount merely to an internal administrative irregularity, but may translate into challenges relating to the timeliness of the communication, the adequacy of the guaranteed amount and, more generally, the proper conduct of the promotion. The FAQs also recall that failure to comply with the time limits for submitting documentation in prize contests constitutes a violation punishable under Article 124 of Royal Decree-Law No. 1933/1938, as subsequently amended.
More generally, the penalty framework referred to in the ministerial document confirms that prohibited or irregular promotions may expose the promoter to significant monetary penalties. In this context, the security should be regarded as an early indicator of the regulatory soundness of the initiative as a whole.
A practical conclusion for businesses
For those designing promotional campaigns, security should never be addressed only after the creative phase or treated as a mere notarial, banking or insurance step. Rather, it is an issue that must be managed in parallel with the definition of the mechanics, the rules, the value of the prizes and the launch timetable. Precisely for this reason, a technical approach oriented toward the business makes it possible to turn an apparently formal requirement into a tool for risk reduction and greater predictability in campaign execution.
Ultimately, the ministerial FAQs confirm that security is a decisive junction in the architecture of prize promotions. Knowing how to structure it properly means not only complying with Presidential Decree No. 430/2001, but also placing the promotional project in a position to reach the market with timing, costs and compliance safeguards that are genuinely under control.
