The Superior Council of CONAR, the National Council for Advertising Self-Regulation, approved on December 11th Annex “X” of the Brazilian Code of Advertising Self-Regulation, with self-regulation rules for betting advertising in Brazil. The Annex will come into effect on January 31, 2024, with modulation foreseen in the case of the requirement to identify the operator/advertiser's authorization, which is awaiting regulation by the public authority.
The text considers the regulatory framework for the matter, Law No. 13.756/18, Ministry of Finance Ordinance No. 1.330/23, and the recently approved Law resulting from the approval of Bill No. 3.626/23. In this respect, the assumption of self-regulation, subsidiarity based on the imperative compliance with legislation, and the mandatory authorization for the exploitation and advertising of the activity are reiterated.
Check out: CONAR Annex X Advertising Betting – December 2023
Now, with Annex “X” of the Code, Conar presents a set of proportionate rules, based on the main international references and calibrated according to each advertising format, which serve the central purpose of improving the commercial communication environment of the betting segment.
This important step also responds to the stimuli from legislators and regulatory authorities, aiming to present a consistent framework of rules and enforcement measures to contribute to achieving the aforementioned common goal of socially responsible advertising in the sector.
“Annex X is the result of the Working Group established by us based on agreements signed with entities that bring together advertisers in the betting segment,” says Sergio Pompilio, president of Conar. “Annex X reflects the dedication of the 24 members of the Group, appointed by the entities that signed the agreements and by the founding and co-founding entities of Conar, a representative composition of the structures of the communications sector in the country, also counting on the collaboration of members of our technical staff.”
The Working Group included Célio Belém, its coordinator, Adriana Pinheiro Machado, Ana Paula Silveira, André Gelfi, Arthur Silva, Cássio Filter, Cristiano Lobato Flores, Danielle Bibas, Débora Dalcin, Eduardo Vanucci, Fernando Vieira de Melo, Heloisa Helena, Hugo Oliveira, Marcelo Migliori, Natalia Kuchar, Rafael Marcondes, Rafael Soriano, Renata Regino, Rodoldo Salerma, Thiago Barros Ribeiro, Tiago Aguiar, Urbano Sampaio Neto, Wanessa Bezerra Vieira, and Wesley Cardia. Representing CONAR were Billy Martins, Ernesto Morita, Fernanda Carrilho, Juliana Albuquerque, and Sergio Pompilio.
The basis of the new annex
Pompilio explains that the text was developed based on experience in various markets, comparing regulatory frameworks, resulting in the verification of five basic principles: advertising identification, truthfulness and information, protection of children and adolescents, social responsibility and responsible gambling, and warnings about the impacts of the activity.
As a starting point and fundamental premise, the principle of legality was reiterated in the preamble of the text, along with the mandatory conformity of advertising offers with the legislation and regulations in force, highlighting the provision of the introductory article of the Code: "Every advertisement must be respectful and conform to the laws of the country; it must also be honest and truthful," further emphasizing the prerequisite of authorization by a competent public authority for the operation and advertising of betting services.
Key principles
Several principles outlined in the general part of the Code of Ethics for Advertising are emphasized and detailed in Annex “X”:
- Principle of advertising identification: already present in the general part of the Code, and also contemplated in the Consumer Protection Code (CDC), it is highlighted to emphasize the importance of transparency regarding the commercial nature and the fundamental identification of the party responsible for the offer. It is also necessary to provide identification of the authorization granted, as a way to guarantee the means of verifying the regularity of the offer, originating from a duly licensed company.
- Principle of truthful presentation and information: details rules for truthful presentation regarding the nature and possible outcomes of the advertised activity, essential for consumers to make informed decisions and avoid being misled. Therefore, promises of guaranteed winnings and results are prohibited, as is the dissemination of misleading or unrealistic information about the probability of winnings in bets and the level of risk involved.
- Principle of protection for children and adolescents: the Annex stipulates a series of restrictions on the content and targeting of advertising, with the purpose of protecting minors, considering that this activity is aimed at those over 18 years of age. Thus, the following is foreseen: the need to include the symbol “18+” or the warning “prohibited for those under 18 years of age”; the prohibition of the use of elements recognizably associated with the children's and youth universe or that may attract the attention of this group; the use of age selection tools for brand profiles (age gate); the prohibition of the presence of children and adolescents in advertisements; establishing that the models appearing in advertisements in this segment, practicing gambling, playing a significant or prominent role, must be and appear to be over 21 years of age. The recommendation regarding advertising on social media was considered, including, in addition to age restriction mechanisms on brand profiles, the need for compliance of advertising content generated by third parties on social networks, reiterating that such disclosures are also subject to the rules of the Code and the regulations in force, and stipulating that betting advertising may only be disseminated by influencers whose majority of followers are adults.
- Principles of social responsibility and responsible gambling: the financial and psychological impacts on the consumer were also considered, with provisions prohibiting incentives for excessive or irresponsible gambling behavior, as well as warnings about potential financial and psychological losses.
Consultations
Rounds of consultations were held with authorities from the Ministry of Finance, entities that signed the agreements, and the founders and co-founder of CONAR, and all comments and contributions submitted were considered.
"Given the constant transformations in advertising formats and strategies, the group highlighted the recommendation to monitor the application of the rules and evaluate their effectiveness, suggesting the development of guidance documents on the interpretation and detailed application of the rules, as well as an analysis of the need for their updating at intervals not exceeding one year," says Pompilio.
“Our proposed rules serve the central purpose of improving the commercial communication environment in the fixed-odds betting segment, contributing to commitments to respecting consumer rights and socially responsible advertising,” says Pompilio.
The guide summarizes the recommendations of the new Annex.
Check out the summary with the Conar folder.
