Fifa’s ethics committee said in a statement: “The CBF should not have offered the watches, and those who received gift bags should have promptly checked whether the items inside were appropriate and, upon discovering the watch, either returned it or reported the matter.
“The Fifa code of ethics plainly prohibits such gifts. Officials may not offer or accept gifts that have more than ‘symbolic or trivial value’.”
The ethics committee, headed by former New York attorney Michael J Garcia, says the CBF distributed 65 gift bags, which each contained a Parmigiani watch, to a group that comprised the officials on the Fifa executive committee, a representative from each of the 32 national associations taking part in the World Cup, and delegates from the South American national associations.
The CBF said they had paid $8,750 (£5,336) for each watch but that the ethics committee had obtained an independent valuation of 25,000 Swiss francs (£16,400).
The committee said it would not instigate proceedings against officials who return the watches by 24 October.
In a separate incident, Fifa also said that their Secretary General Jerome Valcke intended to give two different watches to each of the executive committee members in mid-June – but was told he couldn’t by the ethics committee.