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BRAZIL LAW AND PRACTICE Contributed by: Ricardo Barretto Ferreira da Silva, Ingrid Bandeira Santos, Sylvia Werdmüller von Elgg Roberto and Isabella da Penha Lopes, Azevedo Sette Advogados

and other lawful activities, including educa - tion and therapy; • tax incentives – the industry is expected to benefit from incentives similar to those in the cultural sector, according to the Rouanet Law (Law No 8,313/1991) and the Audiovisual Law (Law No 8,685/1993); • age and content rating – the government will be responsible for the age rating of games, considering the risks associated with the use of microtransactions; and • protection of children and adolescents – there are specific measures to protect under - age users, such as requiring that games be designed with the interests of individuals under 18 years of age in mind, the implemen - tation of risk-mitigating measures and con - sideration of accessibility and non-discrimi - nation, as well as special rules for games that include the exchange of text, audio or video messages, among other provisions. Additionally, the law establishes that the govern - ment will regulate customs clearance and import taxes related to electronic games. Individual entrepreneurs and micro-entrepreneurs devel - oping games will receive special treatment to be defined later. This new framework represents a significant step towards regulating the electronic games industry in Brazil, promoting innovation and consumer protection especially in relation to vulnerable users. Gambling elements are not allowed in the con - text of the Electronic Games Framework. In- game purchases are not prohibited but must observe the applicable rules. The Electronic Games Framework provides that tools for in- game purchases must be designed to restrict purchases and commercial transactions by children. Here, purchase authorisation from the parents or adults responsible for children is man -

datory. Under the Statute of Children and Ado - lescents ( Estatuto da Criança e do Adolescente or ECA; Law No 8,069/1990), children are indi - viduals up to 12 years of age, while adolescents are individuals aged between 12 and 18 years. Loot boxes have no specific regulations and are not expressly prohibited, but there are activist associations fighting against them, interpret - ing loot boxes as games of chance. Transversal laws like those of the CDC and ECA are to be observed in connection with in-game purchases and loot boxes, where applicable. 9.2 Regulatory Bodies The gaming industry in Brazil is subject to regu - lation by ministries and public bodies in different sectors, which oversee an array of matters other than those pertaining to the gaming industry. These include: • the Ministry of Culture – this is the main body involved in the implementation of the Elec - tronic Games Framework, having played an important role in its creation; • the Ministry of Justice and Public Security – the Commission of Content Rating is part of this ministry, being responsible for classify - ing movies, TV shows, games, etc, and the National Consumer Secretariat ( Secretaria Nacional do Consumidor SENACON) is also part of this ministry, acting in the defence of consumers’ rights in relation to microtransac - tions and general commercial transactions; • the Ministry of Economy – responsible for tax and fiscal supervision, including the provision of fiscal incentives, and for customs regula - tions and enforcement; and • ANATEL – this agency is not directly in charge of gaming surveillance, but it regu - lates aspects related to internet access and infrastructure.

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