DTI-Laguna monitors firms to safeguard consumers from fraudulent sales promo practices

VICTORIA, LAGUNA – The Department of Trade and Industry – Laguna Provincial Office (DTI-Laguna), through its Consumer Protection Division, conducted supervision and oversight of seven (7) sales promotion activities from August 1 to 17, 2024. These activities included competitions, contests, raffle draws, and sales promotions featuring price reductions and free giveaways. The monitored events took place in major trading centers within Laguna, specifically Biñan, Santa Rosa, Calamba, and Santa Cruz.

This monitoring effort aligns with the Department’s commitment in safeguarding consumers against misleading advertisements and fraudulent sales practices, in accordance with the Republic Act No. 7394 (RA 7394), otherwise known as the Consumer Act of the Philippines.

According to the DTI Department Administrative Order No. 2, Series of 1993, which implements RA 7394, sales promotion is defined as a strategy “to increase the sales, patronage, and/or goodwill of a product.” Such promotions typically involve consumer participation and offer “promises of gain” (e.g., prizes) as incentives for purchasing a product or service.

Furthermore, RA 7394 mandates that establishments planning to conduct sales promotion activities must obtain a permit from the DTI before initiating their promotions. Commonly applied schemes include discounts, premiums, raffles, and contests.

For sales promotion activities to be implemented within the province of Laguna, the sales promo permit may be directly applied at the DTI-Laguna located in Victoria, Laguna. For more inquiries, the DTI-Laguna may be emailed at [email protected]. (ALSLinga, DTI-Laguna) ♦

Date of release: 29 August 2024