The proper execution of a promotion is a complex marketing action and, at the same time, an extremely attractive one, which, if well resolved, can lead to very positive results. When creating a promotion campaign, there are different factors that will be critical in its execution, such as: our brand, the product or service to be promoted, the target audience, the duration, the message, its diffusion, the channel and, of course, the prize to be obtained by those who participate in the promotion. The prize is, undoubtedly, the defining factor of the success of the promotion; it is the one that defines the interest and the perception that the target audience will have of our product or service based on our capacity of seduction.
From our point of view, the success of a promotion depends on maintaining a balance between the achievement of its objectives, the seductive capacity of the prize to be obtained and the mechanics of development, so having the right professionals is highly recommended.
The milestones that every promotion must pass can be schematically defined as follows:
In this article we will briefly address the legal security of the promotion.
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Forms of promotion
It seems logical to think that, for promotions, given the multiple factors involved, there are also multiple factors of regulatory compliance that we are obliged to comply with. This regulatory compliance, in addition to avoiding sanctions (in some cases of great significance), will avoid the negative consequences of dissatisfied participants and, therefore, bad “ambassadors” of our brand, with the corresponding negative reputational effects, bad image and, in short, cost overruns or failures in our promotion.
There are various forms of promotion and, therefore, various legal requirements depending on this. We can find:
In any case we will find some legal obligations, which will be more complex or variable depending on the complexity and type of promotion and that, in the case of promotions whose mechanics run entirely or partially on the Internet, can lead to infinite risks due to the possible extent of its dissemination. In any case, in our promotion we should ask ourselves whether the following aspects should be legally covered:
Legal considerations of a promotion
In general, the legal considerations to be taken into account when carrying out a promotion are as follows:
- Legal basis
- Tax obligations
- Protection of personal data
- Contracts dealing with intellectual property and image relationships
The legal bases of a promotion are nothing more than the terms and conditions under which the promotion will run, a guarantee for the participants in the development of the promotion and a guarantee for the holder of the promotion in case of any claim.
The minimum content of any legal basis must contain the following:
- Duration
- Scope
- Description of the award
- Date of the award ceremony
- System for selecting the award winners
- Requirements and mechanics of participation and development of the promotion
- Exclusions
- Regulation of the processing of personal data
Regarding taxes, the payment of these will depend on the scope of development of the promotion, whether it is regional, national or carried out on the Internet. Likewise, the value of the prize will determine the obligation or not to make withholdings to the winner or winners of the promotion.
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With regard to the obligations we encounter in terms of personal data protection, arising from the processing of these in the development of the promotion, our obligations are several, the main ones:
– Report:
- Purpose and recipients of the information
- Existence of a personal data file and ownership of the file (therefore, we must have it declared before carrying out the promotion).
- Data required for participation and those not required
- Possibility of exercising rights and their procedure
– Collect consent to the use of your data for the development of the promotion.
If we were to carry out the promotion on the Internet or use electronic media when communicating with participants in the promotion, we would also have to take into account the obligations of the Information Society Services regulations and obtain consent for the use of these media.
Regarding the regulation of intellectual property relations and the right to use images (in addition to its regulation in the aspect of the image as personal data), the casuistry can be diverse, so we will have to be to it, always under the horizon of regulating the exploitation rights of the contributions made by the participants in the promotion and the right to use the image of the participant in acts derived from the promotion.
Promote well!
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