• What does sales promotion mean?
• What are exempted from the rules on sales promotion campaigns?
• What must a person do if he intends to conduct a sales promotion?
• What are the requirements for recurring sales promotion campaigns?
• What is the requirement if a sales promotion campaign has several sponsors?
• What is the degree or extent of a sponsor’s participation and responsibility?
• What specific information should be included in the application?
• Are there exemptions from permit requirements?
• What are the prohibited acts in the conduct of sales promotion?
• May an approved sales promotion campaign be discontinued or cancelled?
• How should voluntary cancellation be made after publication but before commencement of the promotion period?
• How is voluntary cancellation of ongoing promotion made?
• What specific information should be included in the announcements, publication or advertisement of the mechanics of the sales campaign?
• What are the other requirements for a sales promotion campaign?

• When is the presence of participants required in the selection of winners?
• What is the general rule on the duration and extension of promotion period?
• May a sponsor or promoter make some changes in the conduct of sales promotion without the knowledge and approval of DTI?
• What is the rule on the postponement or extension of grand draws or final selection of winners?
• When can a winner claim his prize?
• How long can a sponsor hold price reduction promotions?
• In price reduction promotions with a period, is the use of the phrase "WHILE SUPPLY LASTS" allowed?
• What should a winner do if he lost his raffle stub?
• What is the liability of the sponsor/promoter in case the prize was mistakenly given to a holder presenting a fake form?
• What is the rule in disseminating/advertising information regarding sales promotions campaigns?
• Can prizes be transferred or converted to cash or in kind?
• Can prizes, premium or benefit under a sales promotion campaign be reduced in quality and quantity?
• What are the guaranties, warranties and remedies available to consumers under a sales promotion campaign?
• What are the sanctions for violation of these provisions?

Sales promotion means 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. It also means techniques purely intended to increase the sales, patronage and/or goodwill of a product.

Those exempted are:

• Sales promotion campaigns sponsored by the government or by any of these agencies or instrumentalities when the same is conducted in the exercise of their governmental functions.
• Imported products under promotion in their country of origin, not covering the Philippines, whether or not, benefit redounds accidentally to local buyers.
• Social, civic, political, religious, educational 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.

For recurring sales promotion campaigns involving the same scheme and mechanics but with different or undetermined promotion periods, a single application for the permit covering a period of one (1) year is deemed sufficient compliance with these rules.

The application for permit to conduct a sales promotion campaign shall be in the form required by the Department which shall contain the following information and documents:

• The complete name, address, and telephone number, if any, of the sponsor(s) of the sales promotion campaign;
• The complete name, address, and telephone number, if any, of the sales promotion agent or agency, if any;
• The complete name, address, and telephone number, if any, of the person/s who may be contacted by the participants of the promotion for inquiries, complaints, and similar purposes;
• The consumer product, its brand, classification and/or size or the kind and extent of the consumer service or credit to be promoted;
• Proof of registration of the product or business being promoted if the same is required by any government agency;
• The geographical area to be covered;
• The type or nature of the sales promotion campaign to be undertaken;
• The sales promotion period;
• The target participants and the required qualification, if any;
• The type of announcement and/or information dissemination that will be used for the sales campaign or promotion including the text or substance of such announcement or information to be disseminated to the public;
• The mechanics and the criteria, if any, for participating and winning in the sales promotion campaign;
• The procedure for predetermination of winning entry forms, and if applicable, the computer program to be used;
• The type of entry forms and/or paraphernalia to be used in the promotion;
• The plan for seeding of qualifying entry forms, paraphernalia, or predetermined winning entry forms;
• The date, time and place for auditions, try-outs, pre-qualification and/or qualification of participants to the promotion, if the same is required;
• 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;
• The deadline of submission of entries;
• The specific city, municipality, and province and number of drop boxes or the person and address where entry forms may be sent;
• The amount of prizes for each category of winners. If there are or if the prizes are in kind, the description, brand, size, model, or make and their market value of the time of application;
• Whether a prize in kind is transferable, convertible to cash or both;
• Whether the required taxes for the winners shall be shouldered by the sponsor/s or by the winners and in case of the latter, whether the same shall be withheld by the sponsor/s;
• Time and dates within which the prize is demandable after the termination of the sales campaign or promotion which shall be less than sixty (60) days from notification or publication whichever comes last;
• The requirement/s and/or the type of identification which will be required to claim the prizes.
  

Permits for the following sales promotion activities need not be applied for:

• Competitions, except beauty contest conducted nationwide, which do not require the purchase, lease, or payment for any consumer product or service or availment of consumer credit;
• Parlor games, whether held live during stage shows, parties, special occasions and/or utilizing any form of mass media where the qualification to be a participant and/or a home partner of the winner does not require the purchase or lease of any consumer product or service or the availment of a consumer credit facility and/or the sending or presentation of any proof thereof;
• Door prizes given to patrons of concerts. Stage shows, stage plays, film showing and similar activities; and
• Instant sales promotion campaigns;
• In store promotions, 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 campaign. Provided, however, that sales promotion campaigns exempted from permit requirement shall be subject to all the other pertinent rules and regulations on sales promotion campaigns.
  

Prohibited acts include:

• 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 Prescriptions - No sales promotion campaign using medical prescriptions or any part thereof or attachment thereto shall be allowed nor permit be issued.
• Other prohibited activities:
• No act, product, scheme, or activity prohibited or declared illegal under the law shall be allowed in the conduct of any sales promotion campaign. Where an imported product is under international sales promotion, and such promotion is prohibited in the Philippines, the local distributor of the same shall indicate by a notice on or accompanying the product that such 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 unduly influence the results thereof or perform any act to the prejudice of legitimate participants and/or winners.
  

Voluntary cancellation or discontinuance or suspension of any ongoing sales promotion campaign shall not be allowed except upon approval from the Department. The Department may allow such cancellation on any of the following grounds:

• A final judgment of insolvency of the sponsor/s from a court of proper jurisdiction;
• The occurrence of any fortuitous event that will make it impossible for all sponsors to continue to deliver the products or services which has to be purchased or leased or paid for in order for one to participate in the promotion: Provided, however, that those who had already won in the promotion before approval of its cancellation is granted shall be paid their prizes.
  

The time, dates, and places of the following events in the sales promotion campaign shall be made definite in the announcement, publication or advertisement of the mechanics of the sales campaign:

• The promotion period:
• The deadline for submission of entry forms or entering as participant in the promotion;
• The location of drop boxes for entry forms and/or the address where entry forms may be sent, or where one may inform the sponsor of one's intention to participate in the promotion;
• The time/date, and place of the pre-draws, pre-qualifications, try-outs, or auditions to qualify as participant to the sales promotion;
• The time, date and place of preliminary draws, preliminary selection or predetermination of winners of the promotion;
• The time, date and place of final draws or final determination of the winners of the promotion;
• The time, duration and place where prizes may be claimed by the winners.
  

Other requirements include:

• Availability of entry forms to participants - Where entry forms are to be obtained at specific places, the same shall be made available to qualified participants during office or store hours, unless other ways of obtaining them are specified in the mechanics of the promotions.
• Deadline for submission of entries - The deadline for submission of the entries shall be at least one day before the date of the draw or selection winners, unless, otherwise, the scheme utilized makes the one day period impracticable.
• Draw dates, date of selection of winners - Draw dates or date of selection or determination of participants or winners to a sales promotion campaign shall not be more than two weeks after the deadline of the submission of entries, the pre-qualification, audition or try-out.
• List of winners - 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 the following cases:

• Instant sales promotion;
• In the case of competitions, games or parlor games where the presence of the participants is essential to determine the winner; and
• Such other forms of sales promotion campaigns the nature of which demand the presence of the participants.

Any of the following administrative sanctions provided under Article 164 of the Consumer Act of the Philippines may be imposed even if not prayed for in the complaint:issuance of cease and desist order

• undertaking of compliance from the respondent
• imposition of administrative fines ranging from P500 to P300,00