By Mariel Alison L. Aguinaldo
With establishments working to keep the lights on during the COVID-19 pandemic, entrepreneurs have turned to sales promotions as a means of enticing consumers to spend. Sales promos are activities for broad consumer participation which promise some form of gain, such as cash or material prizes, a free product, or monetary discounts.
According to a survey by Facebook and YouGov, price is the greatest purchase consideration for 90% of Filipinos. Sixty percent of Filipinos have also made purchases during sale events.
Here are the steps to follow in applying for a Department of Trade and Industry-Fair Trade Enforcement Bureau (DTI-FTEB) sales promo permit.
1. Check if the promotional activity that you had in mind is eligible for application.
Not every activity that offers promises of gain is actually a sales promo. It must have all of the following elements:
• Offers consumer products and services – These are goods and services that are primarily for personal, family, household, or agricultural purposes. Products that fall under food, drugs, devices, cosmetics, and hazardous substances, are under the jurisdiction of the Department of Health – Food and Drug Administration.
• Targets consumers – A consumer is a natural person who is the end-user of a product or service. Sales promos, therefore, do not apply to juridical persons such as corporations and firms.
• Uses mass media – A promo must be broadcast to the public using the likes of television, radio, broadsheets, and the Internet. Collaterals within the store or mall do not fall under this category.
• Has a clear duration – A promo must have a set timeline that runs within one year. Pride reduction promos cannot exceed three months, while closing-out sales cannot exceed six months. However, promos can be extended up to six months upon the approval of the DTI. In this case, promos can run beyond a year. If an extension for a nine-month promo was approved, then it will run for a total of one year and three months.
2. Complete the list of requirements set by the DTI.
There are different kinds of sales promos, such as discount promos and raffles. Each one entails their respective set of requirements.
The checklist may be accessed through the IRegIS Portal, under the Sales Promotions tab.
3. Determine the scope of your sales promo.
Aside from being an integral part of the sales promo plan, identifying the area of implementation also determines the office of application.
If the sales promo covers a single province or several provinces in a single region, the application must be filed at the DTI Regional Office where the business’ head office is located.
If it covers the National Capital Region (NCR) or several regions including NCR, the application must be filed at the DTI-FTEB office. It could also be accomplished online through the IRegIS Portal, but this first requires registering the business on Negosyo Konek. This can be done on the Konek Your Business portal.
If the sales promo covers several regions excluding NCR, the application must be filed either at the DTI-FTEB office or at the DTI Regional Office where the business head or coordinating office is located.