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Enabling Business, Empowering Consumers
SALES PROMOTION
Enabling Business, Empowering Consumers
SAL ES PROMOTION PROMOTION ◊
Techniques intended for broad consumer participation which contain promises of gain such as: • Prize (in cash or in kind) • Offers reward for purchase of a product or service • Involves winning in a contest, game, competition, etc. • ze w es espr prea ea me mean anss o co comm mmun un ca on
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A tec techn hniqu ique e in inten tended ded to inc incre rease ase sal sales, es, patro patronag nage e and/ an d/or or go good odwi will ll of a pr prod oduc uct, t, se serv rvic ice e or cred credit it facilities
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Enabling Business, Empowering Consumers
ELEMENTS OF A SAL SA L ES PROMO PROMO ◊
Consumer Purchase
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Promise of of gain gain
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Use of Mass Media
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Duration
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TYPES OF SALES PROMOTION ◊
Raffle (Electronic or Convent Conventional) ional) •
Drawin Draw ing g or pi pick cking ing of en entr try y fo form rms/ s/st stub ubss fr from om al alll th the e entries; or electronic selection from a database
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Discount ‐ reduction in its usual price
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Premium ‐ Ex Excl clus usiv ive e ri righ ghtt to pu purc rchas hase e or av avai aill of gi gift fts, s, another product or services, benefit for free, reduced price
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Games ‐ stru structur ctured ed activi activity ty (answ (answering ering quest questions, ions, phy physical sical movement)
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Contest ‐ competition is involved
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Redemption ‐ promise of prizes or rewards to holders of winning entry forms or proof of purchase
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OBJ ECTI ECTIVES VES OF OF THE SAL ES PROMO PERMIT ◊
Fairness in the conduct of sales promotion
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Truth in claims
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Remedies for violation
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SAL SA L ES PROMO PERMIT REQUIREMENTS REQUIREMENTS ◊
Any person intending to conduct any form or scheme for a sa sale less pr prom omot otio ion n ca camp mpai aign gn of a co cons nsum umer er product, service or credit shall first secure a permit from fr om th the e De Depa part rtme ment nt at le leas astt 30 da days ys be befo fore re th the e com omme menc ncem emen entt of th the e pr prom omot otio ion n pe perrio iod d. An incomplete application shall be deemed not filed for thiis ur ose. th ose.
Implementing Agencies: ◊
Department of Trade and Industry (DTI)
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Department of Health (DOH)
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WHEN TO SECURE A PERMIT? ◊
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Sales/ Sale s/pr prom omot otio ion n ca camp mpai aign gnss of al alll co cons nsum umer er prod pr oduc ucts ts,, se serv rvic ices es an and d cr cred edit it fac acil ilit itie iess wh whic ich h include sponsorships of game shows and similar activities; and Food, drugs, cosmetics and hazardous su s ances an agr cu ura pro uc s, e same shall be under the jurisdiction of the concerned department.
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WHEN NOT TO SECURE A PERMIT? ◊
No sales promo permit is needed for the following activities: •
Sales promo campaigns sponsored by government
•
Imported products under promotion in their country of origin, not covering the Philippines
•
Social,, civ Social civic, ic, pol politi itical cal,, re relig ligiou ious, s, edu educa catio tional nal and othe otherr similar organizations conducted among their members
•
, , , simila sim ilarr act activi ivitie ties, s, pol politi itical cal,, re religi ligious ous and ins instit tituti utiona onall advertisements presented for public service, education or informat info rmation, ion, healt health, h, envi environm ronment ent and deve developme lopment nt or desirable values and similar activities
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Enabling Business, Empowering Consumers
OTHER EXEMPTIONS ◊
From permit requirement* exce t bea eau ut contest conducted • Com etitions nati na tion onwi wide de no nott sp spon onso sore red d by co cons nsum umer er pr prod oduc ucts ts,, services, or credit facilities • Parlor games not requiring consumer purchase • Door prizes given away to patrons of shows or other similar activities • Instant sales promotion campaign •
reduct redu ctio ion, n, sp spec ecia iall of offfer er,, pr prod oduc uctt de demo mons nstr trat atio ion, n, produc pro ductt sam sample ples, s, reb rebat ates, es, pre premiu mium m in pac pack, k, exp expert ert advise and other analogous activities. * NOTE: su sub bje jecct to al alll ot oth her pe pert rtin inen entt ru rule less an and d regulations on sales promotion campaign
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WHAT IS IN-STORE PROMOTION? ◊
An In‐St Stor ore e pr prom omot otio ion n is a pr prom omot otio iona nall campai cam paign gn con conduc ducte ted d wit within hin the ret retail ailer’ er’ss store in which no advertisement or public anno an noun uncem cemen entt is mad made e on su such ch act activi ivity ty,, , sign si gnag age e tha hatt ar are e vis isiibl ble e ou outtsi side de of the retailer’s premises.
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INFORMATION ON THE PROMO ◊
WHAT? • c em eme e • Products/Services/Progra m • Sizes
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WHO? •
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Participants
HOW? • Procedures for Entry • Determination of Winner/s
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WHEN? • er o o romo • Deadline for Submission of Entries of Entries • Last Day of of Effectivity Effectivity • Draw Date
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WHERE? • Area Covered • Outlets Covered of Prize Prize • Collection of
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OTHER INFORMATION NEEDED ◊
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Prizes convertibility to cash/trans cash/transferabil ferability ity Scholarships Foreign or domestic trips Reduction in Quantity and Quality No reduction shall be allowed Winner Winn erss sh shal alll en enjo joy y al alll gu guar aran anti ties es/w /war arrran anti ties es an and d remedies as provided for in RA 7394 and other pertinent laws.
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Enabling Business, Empowering Consumers
GENERAL GENE RAL RULE ON MECHANICS ◊
The mechanics of sales promotion campaigns shall be consistent with that disclosed in the applic app licati ation on and app appro roved ved by the con concer cerned ned Department.
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t s a e commun cate n a s mp e, c ear ut complete and understandable manner.
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WHO MAY APPLY FOR THE PERMIT? ◊
The pe The perrso son n wh whos ose e co cons nsum umer er pr prod oduc ucts ts,, services or programs are being promoted.
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The application shall be signed individually or jo joiintly with the other erss or su sub bmit a wr tten ag agrree eeme men nt re ec ectt ng t e r eg egrree or extent of participation.
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WHERE TO FILE FOR THE PERMIT? SCOPE OF PROMO
OFFICE
Singe Province
Respective DTI Provincial Office
Several Provinces in a Single Region
Respective DTI Regional Office
NCR or several Regions including Metro Manila
DTI‐NCR
Several Regions excluding Metro Manila
espec espec ve eg ona ce where the main office or coordinating office of the of the sponsors are located
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DURATION DURA TION OF SALES SAL ES PROMO ◊
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Should not be more than one (1) year ext xten endi dibl ble e to si six( x(6) 6) mo mont nths hs (m (max axim imum um)) upon DTI approval Price reduction should not exceed three (3) months Closing out sales should not be more than six (6) months
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OTHER IMPORTANT DATES ◊
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Deadline for submission of entries at least one (1) day before draw date Draw date or selection of winners should not be more than 14 days after deadline for submission of entries ran raw or na se ec on o w nners ay on y be po post stpo pone ned d on once ce an and d sha shall ll be he held ld wit withi hin n 2 weeks after the original draw date
Enabling Business, Empowering Consumers
TRUTH IN CLAIMS ◊
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All ad All adss sh shal alll co conf nfor orm m wi with th th the e co code de of et ethi hics cs of th the e ADBOARD. All ads ads,, br broch ochur ures es or an any y pri print nted ed mat matter ter des descri cribin bing g the mechanics shall conform with the mechanics approved by the Department. Changes shall be first submitted to DTI for approval. An approved sales promo campaign shall include in their adss th ad the e ph phrras ase, e, “P “Per er DTI‐(Re (Regiona gional/Prov l/Provincia inciall Offic Office) e) Permit # ____, Series of (Year)” with the corresponding control number as may be provided by DTI.
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Trut Tr uth in Cla Claim ims…co s…cont ntin inua uattio ion n…p …pag age e2
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TRUTH IN CLAIMS ◊
All sp All spec ecia iall cl clai aims ms sh shal alll be su subs bsttan anti tiat ated ed wi with th prope pr operly rly use used d re resea searc rch h re resul sults, ts, sci scient entifi ificc ter terms, ms, statistics or quotations.
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The source of such statistics, research/results, shall be indicated in the same promotional campaign.
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Professional Profess ionalss or Prof Professio essional nal Org Organiz anization ationss giving testimonials shall be properly licensed, registered or accredited.
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CANCELLATION OF SALES PROMO Provided Provi ded no ad ma mater terial ialss ha have ve been dis dissem semina inated ted or released • Notify DTI After publication but before commencement • Wri ritt tten en no noti tice ce to DT DTII (n (not ot le less ss th than an 5 da days ys be befo fore re commencement) Inffor orma mati tion on di diss ssem emin inat atio ion n in th the e sa same me ma mann nner er,, • In freq fr eque uenc ncy y an and d me medi dium um as it ha hass be been en an anno noun unce ced d before. • Sponsor shall honor their commitments should they fall to comply with the required period. •
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Cancellation…cont Cancellatio n…continua inuation tion…page …page 2
CANCELLATION OF SALES PROMO ◊
DTI may allow the cancellation o an ongo on goin ing g sa sale less pr prom omot otio ion n su subj bjec ectt to the the following grounds: • final
judgment
occurre rrence nce • occu
of
insolvency
or
of fo fortu rtuit itous ous eve event ntss or fo force rce
majeure
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ROLES OF DTI REPRESENTATIVE ◊
To wi witn tnes esss th the e dr draw awin in o forms;
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To wit witnes nesss the pri print nting ing and see seedin ding g of pr pre e‐determined winning entry forms;
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To witness pre‐qualificatio qualifications, ns, try‐outs, auditions and verify and certify the participants who passed or qualified;
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re‐det determ ermine ined d winni winnin n ent entrr
o w nes nesss pr pre e‐ ra raws ws an ve verr y w nn nner ers; s;
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To witness final draws; and
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To ver verify ify elec electr troni onicc devi device ce or com comput puter er pr progr ogram am bei being ng used in the determination of winners.
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ANNOUNC A NNOUNCEMENT EMENT OF OF WINNERS WINNERS ◊
National in Scope • Once in a newspaper of general circulation • Same manner that sales promo was announced
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Not National in Scope •
Same manner that sales promo was announced
Note: Sho Note: Should uld be done once once within within a per period iod of two (2) week we ekss fr from om ti time me of de dete term rmin inat atio ion n or se sele lect ctio ion n of winners.
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NOTIFICATION OF WINNERS ◊
If the amount of prize is greater than P500.00 •
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Notified in writing by registered main or other form of communication where proof of notice can be verified
If the amount of prize is below P500.00 •
Notified in the same manner that the sales promo campaign is announced or published
Note: Should be done once within a period of 2 weeks from the time of determination or selection of winners.
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Enabling Business, Empowering Consumers
CLAIMING OF PRIZES ◊
Sixty (60) days from date of of publication publication or notification of w nners w c ev ever comes as
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After lapse of of 60 60 days prizes maybe forfeited in favor of sponsor upon written approval of of the the DTI
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In case prize was given to another person Sponsor should give the same prized to rightful winner/s.
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In case of of lost lost of of entry entry form, prizes may be release after lapse of of sixty sixty (60) days upon submission of of the the following: •
Affidavit of of 2 2 disinterested persons (identity)
•
Certification from Barangay Chairperson (residency)
•
Other identification paper
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ADMINISTRA A DMINISTRATIVE TIVE SANCTIONS ◊
Issuance of of Cease Cease and Desist Order
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Acceptance of a voluntary assurance of compliance or discontinuance
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•
to comply with the provisions of the law
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to refrain from engaging in unlawful acts
Impos t on o F nes •
P500‐P300,000.00 (based on capitalization)
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Additional fine/s of not more than P1,000 for each day of continuing violation
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