Several government agencies urged the Puerto Rico Senate on Tuesday to expand its investigation into giveaways (sorteos) run on social media and digital platforms, while companies and promoters who run these giveaways also asked to be regulated, particularly by the Department of Consumer Affairs (DACO). DACO supported the legislation and recommended examining whether its Commercial Practices Regulation needs clarification for digital promotions in which buying a product grants access to one or more entries.
According to the agency, evaluating each activity requires considering the product’s independent value, how it is advertised, and the relationship between payment and chances to win. DACO also proposed coordinating the analysis with the Department of Hacienda (Treasury) and, when appropriate, the Department of Justice. The Secretary of Hacienda said the investigation should consider promoters’ tax obligations and the possible application of laws on lotteries and gambling.
The secretary recommended verifying whether a real, free alternative way to participate exists, as well as identifying who receives the payments, how much revenue the activity generates, and how the prize is delivered. The secretary clarified that the Lottery Bureau (Negociado de la Lotería) has no general authority to investigate or sanction all raffles run by third parties. The agencies also asked that compliance with tax and financial regulations be examined.