CONSUMER WELFARE & BUSINESS REGULATION

Frequently Asked Questions (FAQs)
How is an activity conducted by an agency identified as a sales promotion?
  • It is intended for broad consumer participation.
  • It contains promises of gain or reward for the purchase of a product, security, or winning in a contest.
  • It utilizes mass media and other forms of communication.
  • It is conducted within a short period of time.
What will consumers look for in joining a raffle promo?
DTI permit number - This pertains to the number assigned by the DTI for approved sales promotion. This is located at the lower right side of the ad material released by the promoting agency.
 
What is the coverage of the DTI permit?
All sales promotions campaigns conducted within the Philippines are covered such as:
  • Consumer product
  • Consumer credit
  • Nationwide beauty contest
Exemptions:
  • Sales promotion campaigns sponsored by the government exercising government function
  • Imported products under promotion in the country of origin not covering the Philippines
  • Civic groups sponsored intended among members
  • Food, drugs, devices, cosmetics, and hazardous substances are covered by the Bureau of Food and Drugs (BFAD).
What is a duration of the promotion?
This means the period covering the first to the last day that a participant may join or send or present entries to a sales promotion campaign.
 
Cancellation of Sales Promotion
Shall cancellation of a sales promotion be allowed?
An ongoing sales promotion should not be allowed to be cancelled, except upon approval from the DTI. Cancellation shall be allowed only before the ad announcement, and, in case ad announcement is already released, before entries are made available to the public.

On what grounds shall cancellation of ongoing promotion be allowed?
The DTI may allow cancellation of ongoing promotion on any of the following grounds:
  • final judgment of insolvency of the sponsor/s from a court of proper jurisdiction;
  • occurrence of any fortuitous event that will make it impossible for all sponsors to deliver the products or services to be used in the promotion.
If a promotion is approved to be cancelled and there are already winners before the approval, do the winners have the right to claim their prizes?
Yes. Those who had already won in the promotion before the approval of its cancellation is granted shall be paid their prizes.
 
Complete Mechanics
This means the rules, procedure, and criteria by which one may participate and win and by which the winner may claim his prize in a sales promotion campaign.

Criteria, disqualification, and other rules that maybe imposed by sponsor/s
Who shall be disqualified from joining sales promotions?
  • The sponsor, promoter, advertiser, and their employees, and their relatives up to the second civil degree of consanguinity or affinity
  • Persons reporting regularly to the promoter, sponsor or advertiser under a contract or service and who, by the nature of the service they render may have a direct and personal knowledge of the promotion  
  • In case of promotions involving bank deposits, the Bangko Sentral ng Pilipinas (BSP) shall prescribe the degree of relationship which shall be covered by the disqualification.
Required entry form
This may be any proof of purchase, receipts, coupons, tickets, wrappers, labels, packaging, caps, crowns ,or any other instrument identifying the participant and conforming to the specifications or requirements as laid down in the mechanics.

What minimum information should be written on the raffle stub?
  • Full name of participant
  • Complete address, and telephone number, if any
  • Signature
Erasures or any form of tampering shall invalidate the entry stub or entry form.
 
Manner, date, place, and time for selection or determination of winners
The date of draw shall not be more than two weeks after the deadline of submission of entries.

Can grand draws or final selection of winners be postponed?

Grand draws or final selection of winners may only be postponed once, upon the approval of the DTI.

Can a participant win more than once?

A participant may win more than one prize, unless expressly disallowed in the mechanics of the promotion.

If a participant won more than once, can he claim both prizes?

If winning more than once is disallowed in the mechanics of the promotion, the winner shall be allowed to choose any of the prizes won by him.

If the winner is not present to choose the prize, what prize shall be given to him?

The winner shall automatically be assigned the higher prize.

What shall be done to prizes not chosen by winning participant and those won by disqualified winner?

The prizes shall be re-drawn or other winners selected.

How does fairness on the conduct of the sales promotion be guaranteed?
The DTI representative would be present and will verify guarantee of delivery of commitments on the approved sales promotion. The DTI representative shall:
  • Witness the drawing of pre-determined winning entry forms
  • Witness the printing and seeding of predetermined winning entry forms
  • Witness pre-qualifications, try-outs, auditions and verify and certify the participants who passed or qualified
  • Witness pre-draws and verify winners
  • Witness final draws
Claim period and redemption
How are winners of a raffle promo being notified?
Winners should be announced/published in the same manner that the sales promotion was announced/published, not later than two weeks after determination of winners.

Shall all winners be notified in writing?
In all cases where the amount of the prize is P500 or more, the winners shall be notified in writing by registered mail or any communication where proof of notice can be verified. The list of winners’ names and addresses received by the Post Office shall be submitted to DTI.

Until when can winners claim their prizes?
Winners shall have at least 60 days from the date of the publication or announcement or notification of winners, whichever comes last, within which to claim their prizes unless a shorter period is allowed by the department taking into account the nature of the sales promotion, mechanics and prizes involved.

Will prizes be forfeited after claim period has lapsed?

Yes. After the claim period has lapsed without a claimant, the Department shall be immediately informed. Prizes may be forfeited in favor of the sponsor only upon written approval of the Department.
 
Requirements for claiming prizes
How shall winners of raffles or promotions requiring raffle tickets or stubs claim their prizes?
Winners of this type or promotions may claim their prizes by presenting their copy or portion of the raffle ticket or stub and/or any document, which the sponsor may reasonably require as sufficient to establish the identity of claimant.

Can a winner claim his prize if his raffle stub is lost? How?

Yes. If a raffle stub is lost, the winner will execute an affidavit of loss. He should submit this together with any of the following documents:
  • affidavit of at least two disinterested persons attesting to his identity
  • certification of the barangay captain that the winner is really a resident of that place
  • other identification papers like office/school ID, Social Security System (SSS), or Government Service Insurance (GSIS) numbers; Driver’s license; passport; etc.
How can a minor or incapacitated claim his prize?
In case where a winner is a minor as evidenced by a birth certificate or is incapacitated, the parent or guardian exercising parental authority over him may claim the prize in his behalf.

If prizes are in form of trips or scholarships, can the winners ask for these prizes to be converted/transferred?

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.

What is the remedy available for the winner when the sponsor failed to deliver a prize which is in kind?

In cases where the sponsor is not able to deliver a prize promised which is in kind, the winner may be given its cash equivalent as appearing in the application for permit to conduct the promotion and approved by the department. However, if the sponsor offers to deliver another prize, which is also in kind, he may do so with the consent of the winner.
 
Whether required taxes should be shouldered
Who should pay the tax for the prizes?
Unless otherwise specified, withholding tax shall be paid by the winner.

How much withholding tax shall be paid?

The amount of tax shall be 20% of the acquisition cost of the prize.
 
Sunday, April 20, 2014 8:50AM GMT+8

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