E-Commerce entrepreneurs need to be aware of various advertising regulations that may affect on how they conduct business. This includes:
1. Selling of gift certificates can not have an expiration date. What is only excluded are those that are covered under a special promotion that may have come as a value added or free.
- DTI-DAO 10-04 series of 2010 No expiry date on gift card / certificates / checks sold beginning July 1, 2012
2. Only registered business can do sales promotions, with or without purchase required. This should be applied at least one month before the actual conduct of the promotion. It must be supported by relevant documents that will assert a well organized campaign and will be able to deliver its promise to the participants of the promotion.
- DTI Sales Promotion Permit Process
- DTI-DAO 10-02 Series of 2010 Addenda on Chapter IV Sales Promotion
- DTI-DAO 01-A series of 2000 Schedule of Fees and Charges for Sales Promotion
- DTI-DAO 2 Series of 1993: IRR on Sales Promotion – Consumer Act of the Philippines
3. Companies that conduct sales promotion without permit or may have done neglect in the course of its promotion can be contacted by the consumer for resolution of the issue. However, complaints can also be elevated to the government for resolution.
- DTI-DAO 06 series of 2007 on Administrative Fines
- DTI-DAO 5 series of 2007 – Rules on Mediation in the Resolution of Inquiries, Complaints and Cases Filed with the DTI in violation of the Consumer Act
- DTI DAO 7 series of 2006 – Instituting Simplified and Uniform Rules of Procedure for Administrative Cases filed with the DTI for Violations of the Consumer Act
4. E-commerce site owners are expected to practice fair and truthful advertising. It will also be responsible in the handling of customer data gathered through promotions or sales. It will also set up a help desk to resolve customer complaints.
- Joint DTI-DOH-DA DAO 1 series of 2008: Consumer Protection in E-Commerce Transactions
- E-Commerce Law
- Data Privacy Act
5. In the online world, as well as the offline world, the Consumer Act of the Philippines provided guidelines how products and services should be advertise. This includes being wary on misleading advertisement such as superlative claims where products or services or individuals claim to be “#1” without disinterested parties’ study supporting the claim.
It is important for entrepreneurs to be familiar of existing advertising regulations and be wary of doing any promotion practice deemed as unethical by Internet marketing organizations.
For inquiries about this lesson, contact Janette Toral by sending her a private message via Facebook.