Law Summary
Definition of In-Store Promotion
- In-store promotion refers to promotional campaigns within the retailer's store premises.
- No external advertisement or public announcement is made about such activity.
- Includes window displays or signage visible outside the retail premises.
Nationwide Promotional Campaigns
- Rules apply to promotional campaigns for consumer products, services, credit facilities, game shows, and beauty contests nationwide in character.
Exemptions from Promotional Rules
- Government agencies conducting activities under governmental functions.
- Private entities in joint projects with government agencies.
- Social, civic, political, religious, educational, professional, and similar organizations promoting activities among members, provided not considered sales promotions.
Permit Application Requirement
- Any person intending to conduct promotional activities must file a permit application with the Department at least 30 days prior to commencement.
- Application must be complete; incomplete submissions are considered not filed.
- DTI must act within 10 days; if not, the application is deemed approved.
- No promotional activity may begin prior to permit issuance.
Application Form Contents
- Sponsor's complete identification and contact information.
- Details of representative or agent, if applicable.
- Contact person for participant inquiries or complaints.
- Description of products/services and details of contests or promotions.
- Proof of business/product registration if required.
- Details of announcements, geographical coverage, duration, target participants, mechanics, and criteria.
- Procedures for winner determination, including software verification if electronic means are used.
- Entry form types, security marks, submission deadlines, and prize details.
- Information about tax responsibilities, prize redemption, identification needed, and additional required documents.
Who May File Permits
- Persons promoting the products/services or authorized agents may file applications.
- Joint applications require written agreements detailing responsibilities.
- Liability of parties may be joint and several where no limitation is stipulated.
In-Store Promotions Exemptions
- Activities such as price reductions, product demonstrations, samples, rebates, and premium-in-pack are exempt from permit requirements.
- However, all other pertinent sales promotion rules remain applicable.
Prohibitions on Tampering
- No person shall tamper with entries, paraphernalia, electronic devices used in promotions.
- Any act that unfairly influences results or prejudices legitimate participants is prohibited.
Voluntary Cancellation of Promotions
- Cancellation before publication allowed with written notice and no advertising done.
- Cancellation after publication but before commencement requires at least 5 days’ written notice.
- Sponsors must honor commitments if notice requirement is unmet.
- Ongoing promotions can only be cancelled with DTI approval, upon insolvency, bankruptcy, or force majeure.
- Winners before cancellation must still receive prizes.
General Rules on Promotion Mechanics
- Entry forms must be available during office/store hours unless mechanics specify otherwise.
- Selection of participants must be fair, honest, transparent with proof of notice.
- Draws must occur within 14 days after entry deadline.
- Determination techniques must comply with law, morals, and public policy.
- Electronic promotion software and databases must be verified by DTI prior to approval.
- Changes to promotions require at least two announcements before effectivity.
Additional Rules for Special Promotions
- Specific additional mechanic rules apply to certain promotion types as provided.
Disclosure Requirements in Announcements
- Sales promotion advertisements must disclose:
- Places and manner for submitting entries.
- Deadline for submission of entries.
Presence and Verification by DTI Representatives
- DTI representatives must be invited/notified to:
- Inspect electronic devices used in winner selection.
- Witness printing, seeding, drawing, auditions, pre-qualifications.
- Verify and certify participants and winners.
- Notification must be at least 7 days prior to events; 14 days if outside the country.
- Sponsor must provide a winners’ list with contact details.
Separability Clause
- If any provision is declared unconstitutional, other provisions remain valid and effective.
Repealing Clause
- Prior inconsistent rules or orders are repealed or amended accordingly.
Publication and Effectivity
- The Order takes effect 15 days after publication in two newspapers of general circulation.
- Certified copies must be filed with the University of the Philippines Law Center as per Executive Order No. 292.