Philanthropic sweepstakes carried out by influencers: what the law says

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Distribution of prizes for charitable purposes requires authorization from the Ministry of Finance and must meet several requirements. Draws identified by g1 do not inform their registration numbers or which institutions will benefit. Emerson Falkevicz and Willian Braz Reproduction/Instagram Social networks have been used by influencers with millions of followers to publish videos in which they make donations to people who need help. Some of them, in addition to donations, hold raffles with sales of numbers, with the promise of using the amount raised for social projects. According to experts, philanthropic draws can only be carried out by companies or civil society organizations, and not by individuals, and depend on authorization from the Ministry of Finance. When contrary to the law, this practice can be classified as a raffle, considered a criminal offense (as happens with the animal game). This is because the modality involves paying to participate in a game whose outcome depends exclusively on luck. “The problem lies in the act of paying for a number in exchange for the mere possibility of receiving a prize that you cannot control”, explains lawyer Thiago Valiati, specialist in administrative law and partner at the Razuk Barreto Valiati office. Influencers gain millions of views with videos that show they help people in supermarkets and on the streets. Who are the influencers who run the giveaways? Among the content creators promoting the draws are Emerson Falkevicz, who has 6.1 million followers on Instagram, and Willian Braz, who has 1.9 million. Also known as Emerson Resolve and Willian da Bondade, they publish videos on their pages of donations of money or food to people they meet on the streets. The two say the raffles are used to raise money for their donations. In the most recent campaigns, influencers promised to distribute luxury cars and cell phones and offered payment in cash. The websites published by the two influencers say that the draws are based on the results of the Federal Lottery. Both state that the amount raised will be donated to philanthropic actions, but do not detail the institutions that will benefit. g1 asked the Ministry of Finance whether the companies Emerson Falkevicz, linked to the influencer, and Lorenza Empreendimentos e Desenvolvimento Pessoal Ltda., appointed as the organizer of William Braz’s contests, had authorization to carry out commercial promotions. The folder denied it. g1 contacted the two, but did not receive a response until the publication of this report. The page promoted by Falkevicz also says that the campaign complies with the law as it involves a philanthropic draw that allocates the proceeds to “help people in need with food, education, health”. Draw promoted by Emerson Falkevicz, also known as Emerson Resolve Reproduction Draw promoted by Willian Braz, also known as Willian da Bondade Reproduction Understand the rules for draws Holding draws, in itself, is not illegal. However, the practice must comply with a series of requirements established by Law No. 5,768, of 1971, which deals with the free distribution of prizes. Among several points, the law determines that: draws require authorization from the Ministry of Finance through the Commercial Promotions Control System (SCPC), which allows you to consult ongoing promotions through this link; there cannot be distribution of cash prizes; the distribution of prizes can only be made by legal entities, such as companies and civil society organizations, and not by individuals; raffles for charitable purposes can only be carried out by civil society organizations that are exclusively dedicated to philanthropic activities; the draws must follow the results of extraction from the Federal Lotteries. Draws aimed at social causes fall under the so-called “philanthropic operations”, which have stricter requirements, according to Valiati. “For example, there must be proof that the ownership of the goods to be drawn originated from a duly formalized donation from third parties”, says the lawyer. And the resources collected necessarily need to be reverted to the activity for which the entities were created. “Sweepstakes that provide immoderate profits are not authorized. And the authorization cannot be used to exploit draws as a form of income”, says lawyer Gleibe Pretti, professor at Estácio College. In any type of draw, it is necessary to provide clear information to participants. “Disclosure must be broad and transparent, informing the regulations, the date and place of the draw, and the contact details of whoever is organizing it”, says Pretti. The distribution of prizes without authorization or in violation of regulations may lead to the revocation of the authorization, a ban on holding draws for up to two years and a fine of up to 100% of the total value of the prizes. Videos helping people in markets gain millions of views

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