Source: https://www.dlapiperintelligence.com/prizepromotions/insight/?c=MX
Timestamp: 2019-02-18 06:39:47
Document Index: 671423258

Matched Legal Cases: ['Art. 12', 'art. 1', 'Art. 2', 'Art.7', 'Art. 16', 'Art. 12', 'Art.387', 'Art. 386']

Pursuant to s. III; Art. 12 of the Gaming and Lotteries Law, Mexican entities or individuals located in Mexico, should not participate in the sale or distribution of lottery tickets (ie prize draws) or gambling that takes place abroad without the required authorization from the Ministry of Interior. Failure to obtain such authorization may carry a fine between MXN$ 500 (approx. US$24) to MXN$ 10,000 (approx. US$490) and imprisonment between 3 months to 3 years.
The Gaming and Lotteries Law prohibits games of chance and gambling (art. 1). However, limited types of games that involve a certain degree of chance are allowed (Art. 2), such as chess, domino, dice, races (by human, vehicle and animal),and any type of prize draw. The responsible authority to regulate these activities and grant licences is the Ministry of Interior (Art.7 of the Gaming and Lotteries Law and Art. 16 of the Ministry Regulations).
A guarantee equal to the value of the prize(s)
Details relating to the procedure for selection of participants, draw operation, selection and publication of winners
Identity of the ticket supplier (only applicable for instant draws)
Valuation of the goods to be given as prizes
The structure of the promotion eg selection procedure and draw operation etc. for different prizes, and
Payment of government duties
As an example, a government duty of MXN$ 1,581.00 (approx. US$77) is to be paid for each of the inspections to be carried out by the GOG (ie inspection prior to the issuance of the authorization or the delivery of the prize to the winner).
Authorization number granted by the Ministry of Interior
Number of entry tickets issued
Mechanism to obtain the entry ticket
Mechanism to know the winner, place and date where the prize draw is going to occur
Communication means and dates when the winner is going to be announced and the prize giving
Term and place to collect the prize
Contact numbers and schedules for general information and enquires
The entity or person operating a promotion must include in the communication of the same (eg official rules) to potential entrants the following information (Nom 028):
Goods or services subject to the promotion
Incentive offered in the promotion
Establishments where the promotion is applicable (if any)
Restrictions (if any), and
Guarantees offered to such promotion
Profeco has the authority to issue sanctions against individuals or entities that do not comply with the Consumer Law and it focuses its attention to misleading, wrongful, fraudulent, unlawful promotions or advertisements (ie prize draw publicity). Therefore, great care is advised in content selection for the advertising of any type of prize draw.
The Gaming and Lotteries Law, establishes a penalty of imprisonment between 3 months to 3 years and a fine between MXN$500 (approx. US$25) and MXN$10,000 (approx. US$490) to any Mexican entity or individual that participates in the sale or circulation of lottery tickets or gambling that takes place abroad without the required authorization from the Ministry of Interior (Art. 12).
Further, the Gaming and Lotteries Law provides for 1 month up to 2 years imprisonment and a fine between MXN$100 (approx. US$5) to MXN$5,000 (approx. US$250) for people that knowingly lease a property to carry out illegal gambling or lotteries without the authorization from the Ministry of Interior.
The Consumer Law via Profeco indicates different amounts for fines depending on the type of breach. However note that they can be as low as MXN$236.54 (approx. US$12) and high as MXN$7,948,063.22 (approx. US$390,000).
The Criminal Code provides that the same penalties as fraud shall be applicable when a person keeps the prizes or money due to a prize draw instead of transferring the same to the winner (Art.387, sec. XI). The sentence for fraud can be between 3 days to 12 years of imprisonment and fines ranging from MXN$2,191.20 (approx. US$110 to MXN$8,764.80 (approx. US$430) (depending on the damage value; calculated on minimum wages) (Art. 386).
To instruct the offeror to stop the promotions
To instruct the correction of the promotional content
To close down the operator, and
Impose any other sanction applicable by law (arts. 35 and 128bis of the Consumer Law)
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Associate DLA Piper Mexico [email protected] T +52 5 55 261 1854 View bio
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