COLOMBIA Law and Practice Contributed by: Juan Carlos Uribe and Sandra Ávila-González, Triana, Uribe & Michelsen
7.3 Registration and Approval Requirements For the registration of a sweepstakes/contest/draw before the national authority (COLJUEGOS), the fol - lowing is required: • complete information on the Colombian company or subsidiary responsible for the sweepstakes, which can be found in the certificate of existence; • information on the sweepstakes (name, start and end dates, objectives, requirements to participate, method to select the winner, conditions and restric - tions, date on which the winner is selected); • issuance of a bond to guarantee compliance with the terms of the sweepstakes, in accordance with the information provided in the authority’s registra - tion system; • receipt of payment of the bond; • a copy of the legal representative’s ID; • invoices for the prizes; • a certificate of budget availability for the prizes; • a copy of the accountant’s or auditor’s ID; • a copy of the accountant’s or auditor’s professional registration; • power of attorney; • the value of the prizes; and • payment to secure operating rights and cover administrative expenses. The governmental authority is also entitled to request further information to complete the registration, and authorisation takes approximately 60 days. As noted in 7.1 Sweepstakes and Contests , the “offi - cial fees”, which are in accordance with the total value of the prizes to be awarded, are as follows: • operating rights – equivalent to 14% of the total value of the prizes; and • 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). Furthermore, the value of a prize cannot exceed 160 times the monthly legal minimum wage (COP227,760; approximately USD55,552).
7.4 Free and Reduced-Price Offers The rules that apply to free and reduced-price offers are as follows: • when the promotion offers extra content or product/s for free, the price per unit must only be provided for the base product – ie, not including any extras; • when the promotion offers an extra product of the same type as the original product at a special price, the price per unit must be based on the advertised price divided by the total number of products offered; and • when the promotion offers extra content for the original product at a special price, the price per unit must be based on the advertised price divided by the total amount of extra content offered. The basic rule for any advertisement of “free” prod - ucts is that it must be factual – ie, the goods must be 100% free. In the event of a promotion wherein a free item accompanies the purchased goods, the total cost must be the same; it should not be increased in any way. 7.5 Automatic Renewal/Continuous Service Offers A clause that applies to automatic renewal/continuous service offers under which a marketer can continue to ship and bill for products and services on a recurring basis until the consumer cancels might be deemed abusive if it prevents the consumer from terminating the contract at any time, or if penalties are imposed for early termination.
8. Artificial Intelligence 8.1 AI and Advertising Content
There are no specific rules related to the use of artifi - cial intelligence (AI) specifically in connection with the development of advertising content; only the general rules apply. 8.2 AI-Related Claims General rules apply with respect to the use of AI in con - nection with the development of advertising content, such that the consumer must be properly informed
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