COLOMBIA Law and Practice Contributed by: Juan Carlos Uribe and Sandra Ávila-González, Triana, Uribe & Michelsen
7. Sweepstakes and Other Consumer Promotions 7.1 Sweepstakes and Contests The general requirements regarding the conduct of sweepstakes and contests (chance-based games) are as follows. • Authorisation from the competent authority is required. • The “official fees”, which are in accordance with the total value of the prizes to be awarded, are as follows: (a) operating rights – equivalent to 14% of the total value of the prizes; and (b) administrative expenses – corresponding to 1% of operating rights. • If the value of any prize exceeds approximately USD1,200, a tax of 10% of the amount of the prize is levied (windfall tax). • For sweepstakes, the authority requires a bond to cover the prize pool. Authorisation from the national authority, the State Industrial and Commercial Company that Administers the Revenue Monopoly on Games of Chance and Luck ( Empresa Industrial y Comercial del Estado Adminis‑ tradora del Monopolio Rentístico de los Juegos de Suerte y Azar COLJUEGOS), takes approximately 30 days. Please note that COLJUEGOS only accepts applications for authorisation made by companies or individuals who are domiciled in Colombia; the appli - cation must be made by a distributor in Colombia, a public relations (PR) company acting as the entity responsible for the sweepstakes or a company legally established in Colombia. 7.2 Contests of Skill and Games of Chance Colombia distinguishes between contests of skill and games of chance. Skill-based activities depend entirely on the efforts of the participants but do not necessarily demand a high level of skill. For example, a game asking simple general knowledge questions would be sufficient to qualify as a game of skill. How - ever, if at any stage winning depends on chance, the game will be classified as such.
6.2 Telemarketing As per email marketing, telemarketing is not permis - sible without express prior authorisation from the consumer; the promoter must retain proof of the con - sumer’s authorisation to allow verification before the authority; and any database that includes the private information of consumers must be registered before the Superintendence of Industry and Commerce. 6.3 Text Messaging As per email marketing and telemarketing, text mes - saging is not permissible without express prior author - isation from the consumer. The promoter must retain proof of the consumer’s authorisation to allow veri - fication before the authority, and any database that includes the private information of consumers must be registered before the Superintendence of Industry and Commerce. 6.4 Targeted/Interest-Based Advertising As per email marketing, telemarketing and text mes - saging, targeted/interest-based advertising is not per - missible without express prior authorisation from the consumer. The promoter must retain proof of the con - sumer’s authorisation to allow verification before the authority, and any database that includes the private information of consumers must be registered before the Superintendence of Industry and Commerce. 6.5 Marketing to Children Article 7 of the Data Protection Statute establishes that: “The processing of personal data of children and adolescents is prohibited, except for... data that [is] of a public nature”. Personal data of a public nature includes names and ID numbers. There is no other exception for the collection/process - ing of minors’ personal data, and no authorisation in this regard is valid. It is permissible to collect parental/ legal guardian information, but not that of the minor. Minors cannot be contacted in relation to any kind of advertisement. 6.6 Other Rules In Colombia, the default privacy rules related to adver - tising operate on an opt-in basis. Thus, prior and express authorisation from the consumer is manda - tory.
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