4/10/2013

Enabling  Business,  Empowering  Consumers

SALES PROMOTION

Enabling Business, Empowering Consumers

SALES PROMOTION

Techniques q 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. • Utilize Utili widespread id d means of f communication i ti A technique intended to increase sales, patronage and/or goodwill of a product, service or credit facilities

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4/10/2013

Enabling Business, Empowering Consumers

ELEMENTS OF A SALES PROMO
◊ ◊ ◊ ◊

Consumer Purchase Promise of gain Use of Mass Media Duration

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TYPES OF SALES PROMOTION

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Raffle (Electronic or Conventional) • Drawing or picking of entry forms/stubs from all the entries; or electronic selection from a database Discount ‐ reduction in its usual price Premium ‐ Exclusive right to purchase or avail of gifts, another product or services, benefit for free, reduced price Games ‐ structured activity y ( (answering g q questions, , p physical y movement) Contest ‐ competition is involved Redemption ‐ promise of prizes or rewards to holders of winning entry forms or proof of purchase

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Enabling Business, Empowering Consumers

OBJECTIVES OF THE SALES PROMO PERMIT
◊ ◊ ◊ ◊

Fairness in the conduct of sales promotion Truth in claims Guarantee in the delivery of commitments Remedies for violation

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SALES PROMO PERMIT REQUIREMENTS
Any person intending to conduct any form or scheme for a sales promotion campaign of a consumer product, service or credit shall first secure a permit from the Department at least 30 days before the commencement of the promotion period. An incomplete application shall be deemed not filed for p p this purpose. Implementing Agencies: ◊ Department of Trade and Industry (DTI) ◊ Department of Health (DOH)

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WHEN TO SECURE A PERMIT?

Sales/promotion campaigns of all consumer products, services and credit facilities which include sponsorships of game shows and similar activities; and Food, drugs, cosmetics and hazardous substances bt and d agricultural i lt l products, d t the th 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, civic, political, religious, educational and other similar organizations conducted among their members • Sponsorships of programs, programs concerts, concerts game shows, shows and similar activities, political, religious and institutional advertisements presented for public service, education or information, health, environment and development or desirable values and similar activities

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OTHER EXEMPTIONS

From permit requirement* • Competitions, except beauty contest, conducted nationwide not sponsored by consumer products, 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 • In store promotion such as but not limited to price reduction, special offer, product demonstration, product samples, rebates, premium in pack, expert advise and other analogous activities. * NOTE: subject to all other pertinent rules and regulations on sales promotion campaign

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WHAT IS IN-STORE PROMOTION?

An In‐Store promotion is a promotional campaign conducted within the retailer’s store in which no advertisement or public announcement is made on such activity, but not limited to, to window displays and/or signage that are visible outside of the retailer’s premises.

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Enabling Business, Empowering Consumers

INFORMATION ON THE PROMO

WHAT? S h Scheme • Products/Services/Progra m • Sizes WHO? • Participants • Disqualified HOW? • Procedures for Entry • Determination of  Winner/s

WHEN? • Period P i d of f Promo P • Deadline for Submission  of Entries • Last Day of Effectivity • Draw Date WHERE? • Area Covered • Outlets Covered • Collection of Prize

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OTHER INFORMATION NEEDED

◊ ◊

Prizes convertibility to cash/transferability Scholarships Foreign or domestic trips Reduction in Quantity and Quality No reduction shall be allowed Guaranties/Warranties and Remedies Winners shall enjoy all guaranties/warranties and remedies as provided for in RA 7394 and other pertinent laws.

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Enabling Business, Empowering Consumers

GENERAL RULE ON MECHANICS

The mechanics of sales promotion campaigns shall be consistent with that disclosed in the application and approved by the concerned Department. I shall It h ll be b communicated i d in i a simple, i l clear l b but complete and understandable manner.

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WHO MAY APPLY FOR THE PERMIT?
The person whose consumer products, services or programs are being promoted. ◊ The application shall be signed individually or jointly with the others or submit a written itt agreement t reflecting fl ti their th i degree d or extent of participation.

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WHERE TO FILE FOR THE PERMIT?
SCOPE OF PROMO Singe Province Several Provinces in a Single  Region NCR or several Regions including  Metro Manila Several Regions excluding Metro  Manila OFFICE Respective DTI Provincial Office Respective DTI Regional Office DTI‐NCR Respective DTI Regional Office  where the main office or  coordinating office of the  sponsors are located

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DURATION OF SALES PROMO
Should not be more than one (1) year extendible to six(6) months (maximum) 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 G d Draw Grand D or final fi l selection l ti of f winners i M only May l be postponed once and shall be held within 2 weeks after the original draw date

Enabling Business, Empowering Consumers

TRUTH IN CLAIMS
◊ ◊

◊ ◊

All ads shall conform with the code of ethics of the ADBOARD. All ads, brochures or any printed matter describing 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 ads the phrase, “Per DTI‐(Regional/Provincial Office) Permit # ____, Series of (Year)” with the corresponding control number as may be provided by DTI.

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Truth in Claims…continuation…page 2

Enabling Business, Empowering Consumers

TRUTH IN CLAIMS

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All special claims shall be substantiated with properly used research results, scientific terms, statistics or quotations. The source of such statistics, research/results, shall be indicated in the same promotional campaign. Professionals or Professional Organizations giving testimonials shall be properly licensed, registered or accredited.

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CANCELLATION OF SALES PROMO

Approved but not Started • Provided no ad materials have been disseminated or released • Notify DTI After publication but before commencement • Written notice to DTI (not less than 5 days before commencement) • Information dissemination in the same manner, frequency and medium as it has been announced before. • Sponsor shall honor their commitments should they fall to comply with the required period.

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Cancellation…continuation…page 2

Enabling Business, Empowering Consumers

CANCELLATION OF SALES PROMO

DTI may allow ll the h cancellation ll of f an ongoing sales promotion subject to the following grounds: • final judgment of insolvency or bankruptcy of the sponsor • occurrence of fortuitous events or force majeure

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ROLES OF DTI REPRESENTATIVE
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To witness the drawing of pre‐determined winning entry forms; To witness the printing and seeding of pre‐determined winning entry forms; To witness pre‐qualifications, try‐outs, auditions and verify and certify the participants who passed or qualified; T witness To it pre‐draws d and d verify if winners; i To witness final draws; and To verify electronic device or computer program being used in the determination of winners.

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ANNOUNCEMENT OF WINNERS
National in Scope • Once in a newspaper of general circulation • Same manner that sales promo was announced ◊ Not National in Scope • Same manner that sales promo was announced Note: Should be done once within a period of two (2) weeks from time of determination or selection of winners.

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NOTIFICATION OF WINNERS
If the amount of prize is greater than P500.00 • 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 publication or notification of  winners i  whichever hi h  comes l last t After lapse of 60 days prizes maybe forfeited in favor of  sponsor upon written approval of the DTI In case prize was given to another person Sponsor should  give the same prized to rightful winner/s. In case of lost of entry form, prizes may be release after  lapse of sixty (60) days upon submission of the following: • Affidavit of 2 disinterested persons (identity) • Certification from Barangay Chairperson (residency) • Other identification paper

Enabling Business, Empowering Consumers

ADMINISTRATIVE SANCTIONS
◊ ◊

Issuance of Cease and Desist Order Acceptance of a voluntary assurance of compliance or discontinuance • to comply with the provisions of the law • to refrain from engaging in unlawful acts I Imposition i i  of f Fi Fines • P500‐P300,000.00 (based on capitalization) • Additional fine/s of not more than P1,000 for each day of continuing violation

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Enabling Business, Empowering Consumers

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