Promotions is one of the trade promotion activities, aimed at influencing consumers, stimulating them to buy and use products. So how is this activity regulated? What are the principles and implementation methods? This article shares detailed regulations surrounding promotional activities as prescribed in the Commercial Law 2005.

CSPL: Articles 88, 89, 92 Commercial Law 2005

            Articles 3 and 16 of Decree 81/2018/ND-CP detailing commercial law on trade promotion activities

1. Promotion and business of promotional services

– Promotion is a trade promotion activity of traders to promote the purchase and sale of goods and provision of services by giving customers certain benefits.

– Traders conducting promotions are traders in one of the following cases:

+ Traders directly promote the goods and services they sell business.

+ Traders providing promotional services carry out promotions for the goods and services of other traders under agreements with that trader.

– Trading in promotional services is a commercial activity whereby a trader carries out promotions for the goods and services of another trader on a contractual basis.

2. Principles for implementing promotions

– Promotion programs must be implemented legally, honestly, publicly, transparently and ensure the legitimate rights and interests of consumers, traders, organizations or other individuals.

– Traders implementing promotional programs must ensure favorable conditions for winning customers to receive prizes and are obliged to resolve complaints (if any) related to promotional programs.

– Traders conducting promotions are responsible for ensuring the quality of promoted goods and services and the goods and services used for promotions.

– The implementation of promotions must ensure:

+ Do not set a condition for customers to enjoy promotions that they must give up, refuse or exchange goods and services of other traders or organizations;

+ There is no direct comparison of their goods and services with those of other traders, organizations or individuals.

– Do not use lottery results to make accurate results. intended to win prizes, as a basis for giving away prizes in promotional programs in the following forms:

+ Selling goods and providing services with contest entry forms for customers to choose prize givers according to announced rules and prizes.

+ Selling goods and providing services with participation in programs of chance where participation in the program is associated with purchasing goods and services and winning prizes based on on the luck of the participants according to the announced rules and prizes.

+ Other forms of promotion if approved by the state management agency on commerce.

3. Forms of promotion

– Giving sample goods, providing sample services for customers to try without paying.

– Giving away goods to customers, providing services without collecting money.

– Selling goods, providing services at prices lower than the previous sales price or service provision price, applied during the registered or announced promotion period newspaper. In the case of goods and services whose prices are controlled by the State, promotions in this form are carried out in accordance with the Government’s regulations.

– Selling goods and providing services with purchase vouchers and service usage vouchers so that customers can enjoy one or a number of certain benefits.

– Selling goods and providing services with contest entry forms for customers to choose award givers according to the rules and prizes. announced.

– Selling goods and providing services with participation in programs of chance where participation in the program is associated with the purchase of goods and services and winning prizes based on the luck of the participants according to the announced rules and prizes.

– Organizing a regular customer program, whereby rewards are given to customers based on the quantity or value of purchases of goods and services. The services that customers perform are expressed in the form of customer cards, vouchers recording the purchase of goods and services or other forms.

– Organize customers to participate in cultural, artistic, entertainment programs and other events for promotional purposes.

– Other forms of promotion if approved by the state management agency on commerce.