Brazil Cracks Down on Influencer Advertising of Unregulated Betting

Article by : Milena Petrovska Dec 26, 2023

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A proposal to ban social media influencers from promoting unlicensed gambling sites has been endorsed by the Communication Committee of Brazil’s Chamber of Deputies.

Per the proposed text, these professionals must make sure that their content does not endorse these activities in any communication format. Videos, stories, and reels are all part of the issue.

The proposal will go through two more committees before being debated in a full session in the Chamber of Deputies. On Wednesday, the Communication Committee of Brazil’s Chamber of Deputies approved Bill 3915/2023. The bill aims to crack down on digital influencers who advertise unlicensed gambling sites.

The worry is that such ads may cause serious financial harm and irrecoverable losses. There is also a growing fear that, in the worst cases, this could affect mental health and even lead to suicides.

Fines for Influencers and Social Media Companies for Failing to Comply

The proposal, if enacted, will ban online influencers from advertising gambling with unlicensed operators in any online media format.

The proposal also introduces other rules.

For example, there’s going to be a requirement for influencers to disclose the commercial nature of any advertising content. They’ll also have to provide information on who is financing the activity. The latter condition comes after many influencers worldwide have been playing with credits supplied by operators but failing to disclose the details.

The new rules also mandate that influencers inform their audience about the potential harms of gambling. Moreover, they will need to have a written contract with their advertisers.

Influencers who violate the rules will face a suspension of their activities for up to six months.

In addition, social media companies could be fined up to 2% of their revenues for not enforcing the ban. Moreover, these social media companies will also have to create special channels whose purpose would be receiving complaints and responding to infringement cases.

The bill specifies clear rules for the location of advertising. It stresses the duty of digital influencers to make sure that their content does not support or encourage unregulated gambling activities.

In addition, it requires that all advertising done by foreign entities follows Brazilian law on invoicing and identification. The measure covers all types of posts on social networks, such as videos, live streams, stories, and other formats.

Following France’s Example

Earlier this year, France took similar steps to assert control over the massive promotion of gambling and betting.

The new law will control the activity of some influencers who advertise questionable products or activities, not only gambling. There has been a rise in the promotion of frauds and scams, as well as harmful health remedies and tobacco products.

Moreover, France has required the nearly 150K influencers in its domain to declare whether their content is advertising or commercial partnership. This disclosure, according to the parliament, will help consumers to recognize the type of content they consume.

The legislation explicitly states that influencers can no longer advertise sports betting or gambling. This type of advertising can only be done by entities that have the technical capacity to block minors from accessing the content.

The sentiment in Brazil has been similar, as stated by the Federal Deputies Fred Linhares and Ricardo Ayres, who proposed the changes.

Ayres stated that the goal of the legislation was to ban the careless promotion of betting companies by influencers.

Linhares added that the measure was relevant in the context of a regulated gambling sector in Brazil. Finally, he highlighted the influence that public figures have on their followers, affecting their actions and choices.