DTI Sales Promotion

4/10/2013
Enabling Business, Empowering Consumers
SALES PROMOTION
EnablingBusiness, EmpoweringConsumers
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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ELEMENTS OF A SALES PROMO

ConsumerPurchase Promiseofgain UseofMassMedia Duration
TYPES OF SALES PROMOTION
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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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
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.
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
WHAT IS IN-STORE PROMOTION?
An InStore promotion is a promotional campaign conducted within the retailers 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 retailers premises.
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INFORMATION ON THE PROMO
WHAT? S h Scheme Products/Services/Progra m Sizes WHO? Participants Disqualified HOW? ProceduresforEntry Determinationof Winner/s
WHEN? Period P i dof fPromo P DeadlineforSubmission ofEntries LastDayofEffectivity DrawDate WHERE? AreaCovered OutletsCovered CollectionofPrize
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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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.
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?

SCOPEOFPROMO SingeProvince SeveralProvinces inaSingle Region NCRorseveralRegions including MetroManila SeveralRegionsexcludingMetro Manila OFFICE RespectiveDTIProvincial Office RespectiveDTIRegionalOffice DTINCR Respective DTIRegionalOffice wherethemainofficeor coordinatingofficeofthe sponsorsarelocated
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

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
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 Claimscontinuationpage 2
TRUTH IN CLAIMS
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.
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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Cancellationcontinuationpage 2
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
ROLES OF DTI REPRESENTATIVE

To witness the drawing of predetermined winning entry forms; To witness the printing and seeding of predetermined winning entry forms; To witness prequalifications, tryouts, auditions and verify and certify the participants who passed or qualified; T witness To it predraws 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.
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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CLAIMING OF PRIZES

Sixty(60)daysfromdateofpublicationornotificationof winners i whichever hi h comesl last t Afterlapseof60daysprizesmaybeforfeitedinfavorof sponsoruponwrittenapprovaloftheDTI IncaseprizewasgiventoanotherpersonSponsorshould givethesameprizedtorightfulwinner/s. Incaseoflostofentryform,prizesmaybereleaseafter lapseofsixty(60)daysuponsubmissionofthefollowing: Affidavitof2disinterestedpersons(identity) CertificationfromBarangayChairperson(residency) Otheridentificationpaper
ADMINISTRATIVE SANCTIONS

IssuanceofCeaseandDesistOrder 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 fFi Fines P500P300,000.00 (based on capitalization) Additional fine/s of not more than P1,000 for each day of continuing violation
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DTI Sales Promotion

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4/10/2013

Enabling Business, Empowering Consumers

ELEMENTS OF A SALES PROMO

ConsumerPurchase Promiseofgain UseofMassMedia Duration

TYPES OF SALES PROMOTION

OBJECTIVES OF THE SALES PROMO PERMIT

SALES PROMO PERMIT REQUIREMENTS

WHEN TO SECURE A PERMIT?

WHEN NOT TO SECURE A PERMIT?

WHAT IS IN-STORE PROMOTION?

INFORMATION ON THE PROMO

OTHER INFORMATION NEEDED

GENERAL RULE ON MECHANICS

WHO MAY APPLY FOR THE PERMIT?

WHERE TO FILE FOR THE PERMIT?

DURATION OF SALES PROMO

OTHER IMPORTANT DATES

CANCELLATION OF SALES PROMO

CANCELLATION OF SALES PROMO

ROLES OF DTI REPRESENTATIVE

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