IMMAP'S RESPONSE TO DTI SALES PROMO ISSUE

This is in response to the post on the Social Media Contest and Promotions Philippines blog dated July 29, 2011 entitled:

"Individuals, Bloggers, Businesses need a DTI Sales Promotion Permit even if there is no purchase required"

http://www.socialmediacontestphilippines.com/2011/07/individuals-bloggers-businesses-need.html

Background

There was an open discussion that took place yesterday with representatives of the DTI, members of the Philippine blogosphere, members of the Digital Filipino club, web publishers, big brand advertisers, and IMMAP members and directors. There were over 30 individuals in attendance from different parts of the industry.

Clearly the big question on everyone's mind was eligibility: Do I need to get a DTI permit when my website/brand/blog raffles something away? The answer of the DTI was, "yes". Their explanation was based on the Consumer Act of the Philippines, which the DTI is obligated to enforce:

"Sales Promotion" means techniques intended for broad consumer participation which contain promises of gain such as prizes, in cash or in kind, as reward for the purchase of a product, security, service or winning in contest, game, tournament and other similar competitions which involve determination of winner/s and which utilize mass media or other widespread media of information. It also means techniques purely intended to increase the sales, patronage and/or goodwill of a product.

Art. 116. Permit to Conduct Promotion. - No person shall conduct any sales campaigns, including beauty contest, national in character, sponsored and promoted by manufacturing enterprises without first securing a permit from the concerned department at least thirty (30) calendar days prior to the commencement thereof. Unless an objection or denial is received within fifteen (15) days from filing of the application, the same shall be deemed approved and the promotion campaign or activity may be conducted: Provided, That any sales promotion campaign using medical prescriptions or any part thereof or attachment thereto for raffles or a promise of reward shall not be allowed, nor a permit be issued thereof.

IMMAP's Position

While we appreciate the DTI reaching out to communicate its policies with concerned individuals and entities, IMMAP recognizes that the definition of eligibility they are operating on can be seriously problematic for brands, companies, and individuals who run online promotions, many of them out of their own pocket.

The Consumer Act of the Philippines, in its current incarnation (it was last updated in 1992), does not seem to take into consideration the following:

  1. The notion that a raffle can be conducted purely for goodwill purposes, and not by a company but rather an individual.

  2. The fact that timelines to deploy and operate an online promotion have shrunk from weeks to days to hours (location-based promos).

  3. The fact that individual user experiences online can vary depending on previous behavior, resulting in dynamic pricing or incentive models.

To summarize our position clearly: the almost two-decade law desperately needs to be updated to accommodate a vastly-changed media and marketing landscape. We hope that the DTI can update its position in the interim until an updated Consumer Act can be passed.

With that in mind, IMMAP, as your industry organization, is looking to do the following:

  1. Update the DTI's knowledge base through consultative training, particularly for front-liners who approve online promotions.

  2. Consult with any and all concerned parties in the formation of a policy document which can help shape future DTI policy.

  3. Ultimately work with legislators who are currently redrafting the Consumer Act of the Philippines, to take into account a rapidly evolving digital marketing landscape.

The goal is to make this work for sole proprietors, marketers, big brands, and service providers alike. Operating a 2011 economy based on a 1992 ruleset does not make sense. Like everything else in this space, the laws need to shift to accommodate and grow a changed publishing and marketing environment.

Twitter Summary:

IMMAP on DTI Permits for Bloggers: Consumer Act which DTI enforces needs to be updated. As an association, we can help.