WE OFTEN receive inquiries at my office concerning the legalities of certain sale promotional activities that ranges from online selling to door-to-door marketing.
As a matter of procedure, we provide briefings on what is provided for in the law under the Consumer Act of the Philippines.
We discuss sales promotion as techniques intended for broad consumer participation which contain premises of gain such as prizes, in cash or in kind, as reward for the purchase of a product, security, service or winning in a contest, game, tournament, and other similar competitions which involve determination of winner/s and which utilize mass media or other widespread means of information. In short, it is meant to increase the sales, patronage or goodwill of a product.
So, what must a person do if he intends to conduct a sales promotion? 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. There are regional and provincial offices of DTI nationwide and Negosyo Centers jointly put up by DTI and DILG are increasing and to accommodate such procedures.
However, there are certain campaigns and selling practices that are not allowed like gambling and wagering schemes.
No person shall directly or indirectly tamper with the entries and/or paraphernalia in a sales promotion campaign nor unduly influence the results thereof or perform any act to the prejudice of legitimate participants and/or winners.
An approved sales promotion campaign may be discontinued or cancelled by the sponsor/s motu propio provided that no information dissemination and advertising of the same has been made yet.
If one applies for a promotion campaign, the applicant must obtain forms at the specific office where the activity will take place
Except in the case of sales promotion campaigns involving redemption where the prizes are negligible or those exempted from applying for a permit, a list of the names of winners, their addresses and corresponding prizes, shall be furnished the Department immediately after their being drawn or selected.
The presence of participants shall not be required in the determination of winners of any sales promotion campaign except in instant sales promotion like parlor games where the presence of the participants is essential to determine the winner. A winner shall have at least 60 days from the date of publication or announcement or notification of winners. Grand draws or final selection of winners may only be postponed once, upon the approval of DTI and shall be held within the next two weeks after the date of the previously scheduled grand draw.
What about when a winner lost his or her raffle stub? According to the rules, the winner will execute an affidavit of loss, together with any of the following: affidavit of at least two interested persons attesting to his identity, certification of the barangay captain that the winner is really a resident of that place, and other identification papers.
However, if the sponsor committed a mistake by giving the prize to a holder presenting a fake entry form, the same shall not be a reason to withhold the payment of the prize to the holder presenting the genuine entry form.