Alerts
Another Bill of Law aims to regulate protection of minors in digital environments, now before the Senate
We have more news about the regulation of the activities of minors on the internet, but now on the Brazilian Senate. On October 18, 2022, the Bill of Law No. 2628/2022 (“Bill of Law”) was presented before the Federal Senate. Similarly to Bill of Law No. 2557/2022 (currently before the House of Representatives), this proposal also aims to regulate the protection of minors in digital environments, but it has a wider scope.
We remind you that this Bill of Law is very recent, and still has a long road ahead before and if it reaches enactment. Nonetheless, if it does get to this stage, as per its current wording, it would be applicable to any information technology product or service, available in Brazil, that is targeted or likely to be accessed by minors. Therefore, it would affect many technology-based industries, including video game, social media and entertainment in general.
The Bill of Law regulates different aspects of the interaction of minors with digital platforms and is composed of the following main subjects: (i) personal data protection (including amendments to the Data Protection Law); (ii) parental control; (iii) mechanisms for the report of violations against minors’ rights; (iv) regulation of products directed at the monitoring of minors; (v) regulation of videogames; (vi) regulation of digital advertising; and (vii) regulation of social media.
Among the provisions that could affect the videogame industry, we would like to highlight the following:
- Products and services will need to ensure, by default, the adoption of the “most protective measures available” when it comes to personal data privacy and protection;
- All products and services subject to this regulation will need to provide effective and easy-to-use parental control mechanisms;
- It establishes many rules related to the communication of players inside videogames. The Bill of Law even indicates that if the game allows for such communication, it should be age-rated in the most restrictive classification;
- Again, the Bill of Law fully prohibits the offer of loot boxes in videogames, even expressly determining that they should be considered gambling (which is forbidden in Brazil). Differently from the Bill of Law 2557/2022 (currently before the House of Representatives) it defines lootboxes, stating they are “any functionality available in certain games that allows the acquisition, by means of payment, by the player, of items or random advantages, without guarantee of its use”;
- There are multiple provisions for the regulation of digital advertising targeted to minors, including rules that establish the need to end certain practices of targeted advertising and marketing communication to minors that use, among others, child related language, special effects and excess of colors, use of celebrities that appeal to children, use of cartoon characters of animations, use of dolls, promotions with distribution of awards or collectible gifts or with appeal to children, promotions with competitions or games that appeal to children. It is important to note that these provisions have the potential to heavily impact the advergaming industry in Brazil;
- Contrary to what is established in the Brazilian Framework for the Internet, companies subject to the Bill of Law would be obliged to moderate content that allegedly violates the rights of children and adolescents (establishing a mechanism more similar to notice and take-down);
- Application of administrative penalties for non-compliance that include fines and suspension, or even prohibition of exploitation of the company’s activities; and
- The Brazilian Personal Data Regulation is modified, in order to regulate the processing of minors’ personal data.
Our technology and videogame team will keep monitoring this and other issues that may affect the videogame industry in Brazil and we will keep our clients posted on any new developments.
