SALES PROMOTION PERMITS

“Sales Promotion” means techniques intended for broad consumer participation which contain promises of gain such as prizes, in cash or in kind, as reward for the purchase of a product, security, service or winning in contest, game, tournament and other similar competitions which involve determination of winner/s and which utilize mass media or other widespread media of information. It also means techniques purely intended to increase the sales, patronage and/or goodwill of a product.

Yes. Applications for sales promotion permit within the National Capital Region, or, conducted in several regions including Metro Manila shall be filed with the DTI-FTEB through the IREGIS: https://iregis.dti.gov.ph/

3. Blanket approval for recurring sales promotions (covering a period of one (1) year as prescribed by the Consumer Act) shall be charged under the same permit fees as the above schedule, plus additional 50%.

Minor charges such as change in date or venue of draw shall be subject to Php 100.00 fee and Php 300.00 for extensions and other major changes requiring reevaluation.

For applications covering more than one (1) scheme, each scheme will be subject to a separate permit fee based on the above schedule of fees. 

5. Miscellaneous Provisions
6. 1. Crediting of payments – Payments made by mistake (e.g. excess payments) for any of the fees covered by DTI-DOH JAO No. 01 Series of 2000, shall be refunded to the payor, not directly but way of crediting the mistake payments to future financial obligations of the payor to the concerned agency/office.

• the activity promotes a brand, product, service (purchase is not necessary) with the end view of increasing sales, goodwill or patronage of a product/service;  
• the activity entices participation for a promise of gain, chances of winning and the likes;  
• it is conducted for a limited period of time (maximum period is 1 year);  
• it is published/announced using mass media and other widespread means of communication;   
• the target participants are consumers (consumer as a natural person). 

(DTI DAO 2 Series of 1993)

Permits for the following sales promotions activities need to be applied for:

• Parlor games, whether held live during stage shows, parties, special occasions and/or utilizing any form of mass media. Provided, that the home partner of the winner is not required to purchase or lease any consumer product, service or avail consumer credit facility, including the sending or presentation of any proof;
• Door prizes given to patrons of concerts, stage shows, stage plays, film shows, and similar activities;
• Instant sales promotion campaigns;
• In store promotion, such as, but not limited to price reduction promotions, discount sales, and premium-in-pack in which no advertisements are made on such sales promotion campaigns.

(DTI DAO 2 Series of 1993)

In-Store Promotion means promotional campaign conducted within the retailer’s store in which no advertisement or public announcement is made on such activity including, but not limited to, window displays and/or signages that are visible outside of the retailer’s premises.

(DAO 10-02 Series of 2010)

The following are exempted from the rules on sales promotion campaigns:

• The government or any of instrumentalities when the same is conducted their governmental functions.
• Private entities in joint project/s with any government agency under the preceding paragraph.
• Social, civic, political, religious, educational, professional and other similar organizations which extend promotional activity among their members. Provided, that the promotional activity is not considered sales promotion campaign as defined under these Rules. 

(DAO 10-02 Series of 2010)

Gambling and wagering schemes. No gambling or wagering scheme, as prohibited under existing laws, shall be allowed in the conduct of any sales promotion campaign.

Use of Medical Prescription. No sales promotion campaign using medical prescriptions or any part of it, as an attachment shall be allowed.

Other prohibited activities:

• No act, product, scheme, or activity prohibited or declared illegal under the law shall be allowed in the conduct of the sales promotion campaign. If an imported product is under international sales promotion, yet such promotion does not cover the Philippines, the local distributor of the product shall indicate a notice, accompanying the product, that the ongoing international sales promotion campaign is not applicable in the Philippines.
• No person shall directly or indirectly tamper with the entries and/or paraphernalia in a sales promotion campaign nor influence the results, or perform any act to the disadvantage of the legitimate participants and/or winners.

• Before publication

A person may voluntarily cancel or discontinue the approved promotional campaign/activity provided no information dissemination and advertising thereon has been made and that a written notice be submitted to the Department prior to such voluntary cancellation.

• After publication but before commencement

If any announcement, information dissemination or advertising of the promotional campaign/activity has already been made, but the promotion period has not yet commenced, the discontinuance or cancellation of the promotion may be made only upon prior written notice to the Department within a period of not less than five 15) days before the commencement of the original intended date of promotion.

The sponsor shall honor the promotional commitments should it fall to comply with the required period.

• After publication and ongoing promotional campaigns/activities

Voluntary cancellation or discontinuance or suspension of any ongoing promotional campaigns/activities shall not be allowed except upon prior written approval by the Department which shall be based on any of the following grounds: 

• A final judgment of bankruptcy of the sponsor/s from a court of proper jurisdiction;
• Occurrence of any fortuitous event or force majeure that will make it impossible to continue the promotional campaign/activity. Provided, however, that those who had already won in the promotion before the approval of the cancellation or discontinuance or suspension shall be paid or given their prizes.

(DAO 10-02 Series of 2010)

The following information should be indicated, as applicable:

1. The geographical area to be covered;
2. The period of the promotion campaign/activity; 
3. The target participants and the required qualifications, if any; 
4. The mechanics and the criteria, if any, for participating and winning in the promotion campaign/activity; 
5. The procedure in the predetermination of winning entry forms, and if applicable, the computer program to be used; 
6. The type of entry forms and or paraphernalia or electronic device to be used in the promotion campaign/activity;
7. The plan for the seeding of qualifying entry forms, paraphernalia or predetermined winning entry forms; 
8. The date, time and place for auditions, try-outs, pre-qualification and/or qualification of participants to the promotion, if the same is required; 
9. The security marks, if any, or the nature thereof in the entry forms and/or paraphernalia to be used in the promotion, their purpose, the method of their verification and a sample specimen of such entry form or paraphernalia containing such security mark; 
10. The deadline of submission of entries;
11. The specific city, municipality, or province and number of drop boxes and the name of the business entities and their addresses or telephone numbers where entries may be sent; 
12. The prizes for each category of winners indicating the amount thereof, or if in kind, the description, brand, size, model, or make and their market value at the time of the application; 
13. Whether a prize in kind is transferable and/or convertible to cash;
14. Whether the required taxes for the winnings shall be shouldered by the sponsors/applicants or by the winners, and in case of the latter, whether the same shall be withheld by the sponsors/applicants;
15. Time and dates within which the prize is demandable after the termination of the promotion campaign/activity, which shall not be less than sixty (60) days from the notification or publication, whichever comes last; 
16. The requirements and/or the type of identification which will be required to claim prizes; 
17. The locations of redemption or exchange centers, or where prizes may be claimed, and
18. Such other information, documents as may be required by the Department in order to protect public interest.
    • Definite time, date, and place for the determination of winners;

(DAO 10-02 Series of 2010)

As a general rule, a sales promotion campaign shall have a duration of not more than a year, may be extended to a maximum of six (6) months with prior approval by the Department.

Exceptions to the general rule:

• Price reductions which shall not exceed three (3) months
• Closing out sale which shall not exceed six (6) months

No. Any changes on the conduct of sales promotion such as extension or delay in the dates of the starting; termination and determination of selection of winners; venue of draws auditions, and try-outs; duration, mechanics, procedures or terms and conditions of sales promotions campaign; qualifications required of the participants; criteria in the determination and selection of winners cannot be made without the knowledge and approval of DTI. Changes shall be published, announced, or advertised at least twice before such changes take effect and in the same manner and medium that the sales promotion campaign was announced, published, or advertised by the promoter or sponsor.

Grand draws or selection of winners may only be postponed once upon the approval of the Department, and shall be held within the next two (2) weeks after the date of the previously scheduled grand draw.

A winner shall have at least sixty (60) days from the date of publication, announcement, or notification of winners, whichever comes last,  within which to claim his/her prize.

Yes. The Department upon notice may forfeit a prize in favor of the sponsor only after the lapse of the period to claim and without a claimant.

No. The sponsor shall be liable throughout the promotion to ensure the supply is sufficient until the end of the promotion period.

The winner should execute an affidavit of loss, attached with any of the following: affidavit of at least two (2) disinterested persons attesting to his identity, certification of the barangay captain the winner is really a resident of that place, and other identification papers. In this case, the prize may be released to the claimant after the lapse of the deadlines for claiming the prize.

Prizes in form of foreign or domestic trips and with or without accommodations and scholarships, shall either be transferable, convertible to cash or both. In such cases, the cash equivalent of the prize shall be disclosed in the sales promotion campaign announcements, publications, and advertisements.

No. Reduction in quality or quantity in the products or services under sales promotion nor in the prizes, premium or benefit granted is not allowed.

Buyer of products and services sold under a sales promotion, as well as winners, with reference to their prizes shall enjoy the same guaranty, warranty, and remedy provided for under R.A. 7394 or the Consumer act of the Philippines and other pertinent laws.