QuestionsQuestions (DTI ADMINISTRATIVE ORDER NO. 10-02, S. OF 2010)
It is issued pursuant to the Consumer Act of the Philippines (R.A. No. 7394), particularly Chapter VI on sales promotion, to strengthen rules so promotions are conducted with honesty, transparency, and fairness, and to protect consumers against deceptive, unfair, and unconscionable sales practices and misleading/fraudulent sales promotion.
The rules apply to advertising and sales promotion of all consumer products, services, and credit facilities, including sponsorships of game shows and similar activities; however, food, drugs, devices, cosmetics and hazardous substances, and agricultural products are placed under the jurisdiction of the concerned departments.
In-store promotion is a promotional campaign conducted within the retailer’s store where no advertisement or public announcement is made about the activity, including no window displays/signages visible outside the retailer’s premises.
It applies to promotional campaigns/announcements for consumer products, services, credit facilities (including sponsorship of game shows), as well as beauty contests and other competition/game-show type activities, when nationwide in character.
Exemptions include: (1) government agencies/instrumentalities conducting promotions as part of governmental functions; (2) private entities in joint projects with government agencies; and (3) social/civic/political/religious/educational/professional and similar organizations promoting among members—provided the activity is not considered sales promotion as defined in the rules.
It must be filed with complete supporting documents at least thirty (30) days before the commencement of the activity.
An incomplete application is deemed not filed for permit purposes.
The concerned DTI office must act immediately; if not acted upon within ten (10) days from receipt, the application is considered approved.
No. The rule expressly states: no person shall conduct any covered promotional campaign or activity prior to issuance of the DTI permit.
Among others: sponsor/s and authorized representative details; contact person for participant inquiries/complaints; description/extent of products/services/credit; mechanics/details of contests/game shows; proof of registration if required; announcement text/substance; geographical area; period; target participants/qualifications; participation and winning criteria; procedures for predetermination and any computer program; entry forms/paraphernalia; seeding plan; audition/qualification schedules if any; security marks and verification method; entry submission deadline; drop box locations and sending entities; prizes and market value (if in kind); whether prizes are transferable/convertible; tax shoulder/withholding; prize demand period (not less than 60 days); identification requirements; redemption/exchange locations; and other info/docs needed to protect public interest.
The persons whose consumer products, services, credit facilities, beauty contests, competitions, game shows and the like are being promoted may file the application.
All of them shall be jointly and severally liable and responsible for the promotion.
Cancellation is allowed provided no information dissemination/advertising has been made and a written notice is submitted to the Department prior to the voluntary cancellation.
Discontinuance/cancellation may be made only upon prior written notice to the Department at least five (5) days before the commencement of the originally intended date of promotion; sponsors must honor promotional commitments if they fail to comply with the required period.
It is not allowed except with prior written approval by the Department, based on: (1) a final judgment of voluntary insolvency/bankruptcy against the applicant; or (2) a fortuitous event/force majeure making it impossible to continue. Winners already determined before approval must still be paid/given their prizes.
No person may directly or indirectly tamper with entries, paraphernalia, and/or electronic devices in a covered promotion, unduly influence results, or do any act prejudicial to legitimate participants and/or winners.
Draw date(s) for selection/determination of participants or winners shall not be more than fourteen (14) days after the deadline of submission of entries.
DTI Regional and Provincial Offices shall check the program software source code and the database for prizes to ensure prizes will be distributed for the whole duration of the promo period; without this verification, there can be no approval of the sales promo.
Changes and the fact of approval must be published/announced/advertised at least twice on two (2) different dates before the change is effected, using the same manner and medium as the original promotion announcement/publication/advertisement.
A DTI representative must be invited/notified to inspect/verify electronic devices, witness draw/printing/seeding, witness pre-qualifications/try-outs/auditions, witness pre-draws/minor prizes winners, and witness final draws/final winner determination. Sponsor must send invitation/notification at least seven (7) calendar days before the event; if printing/seeding/drawing is outside the country, at least fourteen (14) calendar days prior. A list of complete names/addresses of winners and their corresponding prizes must be provided to the Department.