Question & AnswerQ&A (DTI ADMINISTRATIVE ORDER NO. 10-02, S. OF 2010)
The main purpose is to protect the interests of the consumer, promote their general welfare, and establish standards of conduct for business and industry, particularly against deceptive, unfair, and unconscionable sales acts and practices.
It covers advertising and sales promotion of all consumer products, services, and credit facilities, including sponsorships of game shows and similar activities, except food, drugs, devices, cosmetics, hazardous substances, and agricultural products which are under the jurisdiction of concerned departments.
In-Store Promotion means a promotional campaign conducted within the retailer's store where no outward advertisement or public announcement is made, including window displays or signages visible outside the retailer's premises.
Exemptions include government agencies conducting promotions in the exercise of governmental functions, private entities in joint projects with government agencies, and social, civic, political, religious, educational, and professional organizations promoting activities among their members, provided these are not considered sales promotion campaigns under these rules.
Any person intending to conduct such activity must file an application for a permit with complete supporting documents to the Department of Trade and Industry (DTI) at least 30 days before the activity starts; no activity may commence without a DTI-issued permit.
The application must contain detailed information including sponsor identity, description of the product or service, geographic area and period of promotion, mechanics and criteria for winning, security measures, prizes details, taxation responsibility, and other pertinent details to protect public interest.
The persons whose consumer products, services, credit facilities, beauty contests, competition, or game shows are being promoted may file the application, either individually or jointly, and must reflect their participation and responsibility. Agents can file on their behalf with proper authorization.
Cancellation before publication requires notice to the Department with no advertising done. Cancellation after publication but before commencement requires written notice at least 5 days prior to the original start date, with obligations to honor commitments if notice is not given. Cancellation of ongoing promotions is only allowed with prior Department approval due to insolvency, bankruptcy, or force majeure, ensuring winners receive their prizes.
No person shall tamper with entries, paraphernalia, or electronic devices involved in the promotion, nor unduly influence results or act to prejudice legitimate participants or winners.
A Department representative must be invited to inspect and verify electronic devices, witness the drawing and seeding of winning entries, pre-qualifications, auditions, minor and final draws, and verify winners. Notification must be sent at least 7 calendar days before events occurring locally or 14 days if outside the country.