Securing DTI Sales Promo Permit
Do you take note of the “Per DTI-NCR Permit No. xxxx, Series of yyyy” at the bottom of advertisements and flyers when you participate or join sales promos of various consumer goods and services? While we see many big businesses complying to the requirement of securing permits before running any sales promotion activities like giving discounts, raffling prizes, conducting games, contests and the like, there are also those entities who do not bother to get any permit. The Department of Trade and Industry (DTI) is the government agency tasked to accept application for sales promo activity, screen the promo mechanics, approve, issue permit and supervise the conduct of awarding the prizes to the winners of the sales promo.
Securing DTI permit before conducting a sales promo is a legal requirement under Republic Act No. 7394, also called the “Consumer Act of the Philippines” and especially under its Section 116. The law was promulgated in 1991 and has the protection of consumers against deceptive, unfair and unconscionable sakes acts and practices as one of its objectives. Implementing rules and regulations (IRRs) were subsequently issued for proper implementation of RA 7394 and the latest of which was DTI Department Administrative Order (DAO) 10-02, Series of 2010 that added to and strengthened DAO No. 2, Series of 1993 more specifically the rules on sales promotion.
With regards to Filipino bloggers, there is now an ongoing discussion on whether you are required to secure DTI Sales Promo Permit whenever you run an online or offline sales promotion even if there is no purchase required from consumers you are targeting to participate. Sad to say, the briefing by DTI regarding the issue is you need to get DTI permit because the bottom-line is to protect the consumers joining online promotions. Bloggers who won’t secure the permits for their promotions run the risk of getting punished as provided in the law.
Correlating the above development for bloggers with that of i-café owners, it is obvious that they also need to secure DTI permit whenever they run periodic promotions like rate discounts and gaming contests to increase. I wonder how i-café owners would react if the government would require them to comply with the law.
If Bloggers will be required to register with the DTI, proper dissemination of implementing regulations should be made including benefits and corresponding penalties for violations thereof. Of course, DTI registration is applicable only to Bloggers who are residents of the Philippines. Still, I believe the DTI will be hard pressed to monitor whether Bloggers in the Philippines are complying with the registration requirements in view of the prevailing “palusot” mentality. Whereas many i-cafes have managed to operate without local permits, then it’s very likely many Bloggers will not bother to secure such permits.