DTI Sales Promotion

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4/10/2013 1 Enabling Business, Empowering Consumers SALES PROMOTION Enabling Business, Empowering Consumers Techniques intended for broad consumer SALES PROMOTION 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. Utili id d f i ti Utilize widespread means of communication A technique intended to increase sales, patronage and/or goodwill of a product, service or credit facilities

description

Know how the Department of Trade and Industry could help you facilitate a worry-free Online Sales Promotions

Transcript of DTI Sales Promotion

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Enabl ing  Bus iness ,   Empower ing  Consumers

SALES PROMOTION

Enabling Business,Empowering Consumers

◊ Techniques intended for broad consumer

SALES PROMOTIONq

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.

Utili id d f i ti• Utilize widespread means of communication

◊ A technique intended to increase sales, patronageand/or goodwill of a product, service or creditfacilities

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ELEMENTS OF A SALES PROMO

◊ Consumer Purchase

◊ Promise of gain

◊ Use of Mass Media◊ Use of Mass Media

◊ Duration

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◊ Raffle (Electronic or Conventional)

TYPES OF SALES PROMOTION

• Drawing or picking of entry forms/stubs from all theentries; 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 (answering questions, physicaly ( g q , p ymovement)

◊ Contest ‐ competition is involved

◊ Redemption ‐ promise of prizes or rewards to holders ofwinning 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◊ Guarantee in the delivery of commitments

◊ Remedies for violation

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◊ Any person intending to conduct any form or scheme

SALES PROMO PERMIT REQUIREMENTS

for a sales promotion campaign of a consumerproduct, service or credit shall first secure a permitfrom the Department at least 30 days before thecommencement of the promotion period. Anincomplete application shall be deemed not filed forthis purpose.p p

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 consumerproducts, services and credit facilities whichinclude sponsorships of game shows and similaractivities; and

◊ Food, drugs, cosmetics and hazardousb t d i lt l d t thsubstances and agricultural products, the same

shall be under the jurisdiction of the concerneddepartment.

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◊ No sales promo permit is needed for the following activities:

WHEN NOT TO SECURE A PERMIT?

• Sales promo campaigns sponsored by government

• Imported products under promotion in their country oforigin, not covering the Philippines

• Social, civic, political, religious, educational and othersimilar organizations conducted among their members

• Sponsorships of programs concerts game shows andSponsorships of programs, concerts, game shows, andsimilar activities, political, religious and institutionaladvertisements presented for public service, education orinformation, health, environment and development ordesirable values and similar activities

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◊ From permit requirement*• Competitions, except beauty contest, conducted

OTHER EXEMPTIONS

Competitions, except beauty contest, conductednationwide not sponsored by consumer products,services, or credit facilities

• Parlor games not requiring consumer purchase• Door prizes given away to patrons of shows or othersimilar activities

• Instant sales promotion campaign• In store promotion such as but not limited to price• In store promotion such as but not limited to pricereduction, special offer, product demonstration,product samples, rebates, premium in pack, expertadvise and other analogous activities.

* NOTE: subject to all other pertinent rules andregulations on sales promotion campaign

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WHAT IS IN-STORE PROMOTION?

◊ An In‐Store promotion is a promotionalcampaign conducted within the retailer’sstore in which no advertisement or publicannouncement is made on such activity,but not limited to window displays and/orbut not limited to, window displays and/orsignage that are visible outside of theretailer’s premises.

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◊ WHAT?S h

◊ WHEN?P i d f P

INFORMATION ON THE PROMO

• Scheme• Products/Services/Progra

m• Sizes

◊ WHO?

• Participants

• Disqualified

• Period of Promo• Deadline for Submission of Entries

• Last Day of Effectivity• Draw Date

◊ WHERE?• Area Covered

• Disqualified

◊ HOW?• Procedures for Entry• Determination of Winner/s

• 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◊ Guaranties/Warranties and Remedies

Winners shall enjoy all guaranties/warranties andremedies as provided for in RA 7394 and other pertinentlaws.

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GENERAL RULE ON MECHANICS

◊ The mechanics of sales promotion campaignsshall be consistent with that disclosed in theapplication and approved by the concernedDepartment.

I h ll b i d i i l l b◊ It shall be communicated in a simple, clear butcomplete 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 individuallyor jointly with the others or submit a

itt t fl ti th i dwritten agreement reflecting their degreeor 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

Respective DTI Regional OfficeSeveral Regions excluding Metro 

Manila

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) yearextendible to six(6) months (maximum)upon DTI approval

◊ Price reduction should not exceed three (3)months

◊ Closing out sales should not be more thansix (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 bemore than 14 days after deadline for submissionof entries

G d D fi l l ti f i M l◊ Grand Draw or final selection of winners May onlybe postponed once and shall be held within 2weeks after the original draw date

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TRUTH IN CLAIMS

◊ All ads shall conform with the code of ethics of theADBOARD.

◊ All ads, brochures or any printed matter describing themechanics shall conform with the mechanics approved bythe Department.

◊ Changes shall be first submitted to DTI for approval.

◊ An approved sales promo campaign shall include in theirads the phrase, “Per DTI‐(Regional/Provincial Office)Permit # ____, Series of (Year)” with the correspondingcontrol number as may be provided by DTI.

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TRUTH IN CLAIMS

Truth in Claims…continuation…page 2

◊ All special claims shall be substantiated withproperly used research results, scientific terms,statistics or quotations.

◊ The source of such statistics, research/results, shallbe indicated in the same promotional campaign.

◊ Professionals or Professional Organizations givingtestimonials shall be properly licensed, registered oraccredited.

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◊ Approved but not Started

CANCELLATION OF SALES PROMO◊ Approved but not Started

• Provided no ad materials have been disseminated orreleased

• Notify DTI◊ After publication but before commencement

• Written notice to DTI (not less than 5 days beforecommencement)

• Information dissemination in the same manner,frequency and medium as it has been announcedbefore.

• Sponsor shall honor their commitments should they fallto comply with the required period.

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ll h ll f

CANCELLATION OF SALES PROMO

Cancellation…continuation…page 2

◊ DTI may allow the cancellation of anongoing sales promotion subject to thefollowing grounds:

• final judgment of insolvency orbankruptcy of the sponsorbankruptcy of the sponsor

• occurrence of fortuitous events or forcemajeure

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◊ To witness the drawing of pre‐determined winning entry

ROLES OF DTI REPRESENTATIVE

◊ To witness the drawing of pre determined winning entryforms;

◊ To witness the printing and seeding of pre‐determinedwinning entry forms;

◊ To witness pre‐qualifications, try‐outs, auditions and verifyand certify the participants who passed or qualified;

T it d d if i◊ To witness pre‐draws and verify winners;

◊ To witness final draws; and

◊ To verify electronic device or computer program beingused 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 ofwinners.

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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 ofcommunication where proof of notice can be verified

◊ If the amount of prize is below P500.00

• Notified in the same manner that the sales promocampaign is announced or published

Note: Should be done once within a period of 2 weeksfrom the time of determination or selection of winners.

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◊ Sixty (60) days from date of publication or notification of i hi h l t

CLAIMING OF PRIZES

winners whichever comes last

◊ 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

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ADMINISTRATIVE SANCTIONS

◊ Issuance of Cease and Desist Order

◊ Acceptance of a voluntary assurance of compliance ordiscontinuance

• to comply with the provisions of the law

• to refrain from engaging in unlawful acts

I i i f Fi◊ Imposition of Fines

• P500‐P300,000.00 (based on capitalization)

• Additional fine/s of not more than P1,000 for eachday of continuing violation

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