France - Online promotions: towards a clearer legal framework?

Online promotions, draws, sweepstakes, and lotteries have become essential marketing tools for brands. However, their legal framework in France remains unclear, leading to potentially abusive practices.

Presented to the French Senate on March 6, 2025, the proposed law n° 24-412 aims to bring greater clarity and security to online promotions, benefiting both businesses and consumers.

Why this bill ?

With the rise of digital marketing, online promotional games have multiplied. While these games are an effective tool for engaging consumers, their regulation has not always kept pace with evolving digital practices.

As a result, some businesses exploit this legal grey area by setting up online promotional games with unclear conditions, potentially violating consumer rights, while others use these mechanisms for fraudulent purposes.

What is the current legal framework for online promotions?

The current French legal framework mainly relies on two key texts:

• the Consumer Code, which imposes transparency and information obligations on organizers, but without specific provisions for digital games;
• the Homeland Security Code, which regulates gambling but excludes promotional games under certain conditions.

In principle, the Homeland Security Code bans lotteries, except in specific cases. For an operation to be classified as a lottery—and therefore prohibited—it must meet four criteria: (i) be open to the public, (ii) offer a prize, (iii) be based on chance or skill, and (iv) require a financial contribution, even if this is reimbursed later (Article L320-1 of the Internal Security Code).

However, there are exceptions. Promotional lotteries aimed at consumers are allowed if they are free or can be considered a commercial operation, as defined in Article L121-20 of the Consumer Code, designed to encourage the purchase of a product (see Article L320-6 of the Internal Security Code).

In all cases, these games must not constitute unfair commercial practices under the Consumer Code, which is divided into two categories: (i) misleading practices, as listed in Article L.121-2 of the Consumer Code, and (ii) aggressive practices, defined in Article L.121-6 of the Consumer Code.

A new proposed legal framework

In response to the unclear regulation, which lacks specific rules for online promotions, the French legislator has proposed a new framework aimed at strengthening consumer protection while providing businesses with a more structured legal environment.

The proposed law includes three key measures to be incorporated into the Consumer Code:

• clarify the distinction between promotional games (free) and games of chance that require prior authorization, by creating a specific section in the Consumer Code;
• impose clear rules on organizers, particularly regarding transparency, data protection, and fraud prevention;
• increase sanctions for non-compliance, to deter abusive practices.

What is the next step?

The text is currently under review in the Senate, where it will be examined in committee and debated in public session. Once adopted, it will be sent to the Parliament for a second reading.

With this reform, businesses will continue to use online contests as a powerful marketing tool but within a more transparent and secure framework. This evolution should benefit the entire sector.