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Ministry proposes tougher rules on sales promotion activities
Traders would not be allowed to end their sales promotion programs before the deadlines announced or approved by competent agencies, except cases of force majeure events, according to a draft decree recently prepared by the Ministry of Industry and Trade to revise Decree 37 issued in 2006.

Traders would not be allowed to end their sales promotion programs before the deadlines announced or approved by competent agencies, except cases of force majeure events, according to a draft decree recently prepared by the Ministry of Industry and Trade to revise Decree 37 issued in 2006.

The future regulation would create more favorable conditions for enterprises and traders to organize sales promotion activities to raise their business efficiency __Photo: Internet

According to the drafters, compared to Decree 37, the future regulation would create more favorable conditions for enterprises and traders to organize sales promotion activities to raise their business efficiency, while preventing abusing sales promotion for self-seeking purposes or illegal business operations.

As per Article 18 of the draft, the time limit for announcement and awarding of sales promotion prizes would be 45 days after the sales promotion ends. The draft also requires traders to report to competent agencies on implementation of sales promotion programs within 45 days from the date of giving sales promotion prizes.

Competent state management agencies in charge of trade would stop all or some of sales promotion activities of traders in their localities if detecting any violation committed by these traders, says the draft.

Traders would not use alcohol, lottery, cigarettes, curative medicines, prescription drugs and milk for under-24 month children for sales promotion programs.

Meanwhile, sales promotion activities in the form of multi-level marketing would be banned.

As for sale of goods or provision of services together with customers’ participation in promotional games of chance, the prize drawing in these games is required to be organized publicly according to announced rules and witnessed by participating customers.

Under the draft, 50 percent of the announced prize value of a promotional game of chance won by none would be remitted into the state budget.- (VLLF)

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