Senate to investigate companies promoting property raffles on social media
By THE STAR STAFF
Sen. Héctor Joaquín Sánchez said Thursday that the Puerto Rico Senate will open an investigation into companies that promote property raffles on social media, a practice that has expanded rapidly amid growing concerns about consumer protection.
In a radio interview, the senator noted that while some businesses comply with regulations from the Department of Consumer Affairs (DACO by its acronym in Spanish), others appear to be operating without certification or oversight.
Sánchez said he will summon two companies that have submitted the required DACO reports to testify in public hearings and present verifiable examples of winners. He also intends to bring in at least one raffle winner to describe their experience. He pointed out that some promotions even include apartments in the Dominican Republic, raising questions about whether the prizes are real and whether companies are following Puerto Rico’s consumer laws.
The senator highlighted cases in which winners receive properties valued at around $300,000 without being informed that they must pay a tax of roughly 30% on the prize. He said the lack of disclosure places consumers at risk and underscores the need for clearer public policy. His goal, he added, is not only to identify companies that fail to comply with DACO requirements but also to strengthen protections for consumers who participate in the raffles.
The investigation comes at a moment when Puerto Rico continues to struggle with a long‑standing housing crisis. The island faces a severe shortage of affordable units, driven by years of economic contraction, population loss, and the destruction of housing stock after major hurricanes.
Many homes remain unrepaired, construction costs have risen sharply, and public housing developments suffer from chronic underfunding and aging infrastructure. Those pressures have left thousands of families without stable housing options and have fueled interest in unconventional paths to homeownership, including raffles that promise life‑changing prizes but may expose participants to financial or legal pitfalls.
Against that backdrop, lawmakers say the Senate’s inquiry is an effort to ensure transparency and protect residents who may be drawn to the promotions out of desperation for access to housing.
The hearings are expected to examine whether companies are awarding the prizes they advertise, whether they disclose tax obligations, and whether additional regulation is needed to prevent misleading or predatory practices.
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