DTI-Davao: Sales promo period must be definite

The Department of Trade and Industry (DTI) in Davao Region reiterated among establishments that sales promotion period must be definite.

With its efforts to uphold the rights of consumers, the agency is intensifying its campaign against unscrupulous conduct of sales promotion.

Republic Act 7394, or the Consumer Act of the Philippines, defines sales promotion as techniques intended for broad consumer participation which contain promises of gain, which includes a prize (either in cash or in kind) and reward for purchasing a product or service, involves winning in a contest or game, and utilize widespread means of communication. It is also a strategy intended to increase sales, patronage and/or goodwill of a product, service or credit facilities.

These sales promo campaigns are offered in different types, to wit: raffle (electronic or conventional), discount, premium, games, contest and redemption.

For a sales promo application of an establishment to get approved, DTI reiterated that it needs to suffice four elements – promise of gain, consumer purchase, use of mass media and duration.

With these elements, there will be greater chances to achieve fairness in the conduct of sales promotion, truth in claims, guarantee in the delivery of commitments and remedies for possible violation.

“We would like to reiterate that putting the phrase ‘until supply lasts’ in any sales promo activity is prohibited by law. Therefore, all establishments must ensure that the items on sale or the prizes they are giving away will last until the last day of the promo,” DTI-Davao Region Officer-in-Charge Maria Belenda Q. Ambi pointed out.

Ambi added that any person who wants to conduct any form or scheme for a sales promotion campaign of a consumer product, service or credit facilities which include sponsorship or game shows and similar activities must first secure a permit from DTI, from the Department of Health (DOH) for food, drugs, cosmetics and hazardous products, or from the National Meat Inspection Service (NMIS) for meat products at least 30 days prior to the actual start of the promo period.

Meanwhile, DTI clarified that no sales promo permit is needed for the following activities:

·         Sales promo campaigns sponsored by government;

·         Imported products under promo 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, concerts, game 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.

Should the public know of any establishment running a sales promo campaign without a permit, Ambi is urging them to contact the nearest DTI office. In Davao City, they may contact (082) 224-0511.