PHILIPPINES – AUGUST 1, 2011 – For most consumers, the Department of Trade and Industry permit number is just a line in an ad, but for most brands, applying for the DTI sales promotion permit is an essential marketing task required by the government to protect consumers. The sales promotion permit was the topic of discussion by DTI representatives, Internet and Mobile Marketing Association of the Philippines (IMMAP) members and directors, web publishers, big brand advisers, and members of the Philippine blogosphere and the Digital Filipino Club last July 28.
The permit is used in accordance with the Consumer Act of the Philippines, which states that any type of promotion “intended for broad consumer participation which contain promises of gain such as prizes, in cash or in kind, as a reward” must have the sales promotion permit, be it in an online or offline promotion.
With the gamut of contests online from giveaways to user-generated content competitions, whether bloggers are also covered by these rules has become a big debate in the Philippines, which has a very active online population.
A major issue discussed was the scope of the regulation, which is widely interpreted to include promotional events set up by personal bloggers. DTI’s response to this was that all promotions, such as raffles and other contests, online or otherwise, even if purchase is not required, need a permit. Needless to say, many bloggers are outraged by this requirement, as their blogs are mostly not proper businesses, but rather are set up for pleasure and self-expression, with the contests aiming to expand the blog’s popularity rather than directly earning from it.
In addition, DTI stated that bloggers would have to file for a Mayor’s Permit, which requires them to first register an office space and obtain a Barangay Permit. The concern with this is that, because most bloggers have full-time jobs separate from their blogs, it seems illogical and counter-productive to fill out large amounts of paperwork for an operation with a very low financial yield.
The IMMAP has made its position on the permit clear: the association appreciates that DTI is “reaching out to communicate its policies with concerned individuals”, however it believes that the Consumer Act of the Philippines, last updated in 1992, is out of date and therefore should not be used as the basis for an ever-growing and ever-changing industry.
IMMAP plans to work with DTI for consultative training, form a policy document to help shape the future DTI policy, and work with legislators who are currently redrafting the Consumer Act. Progress is expected to be made in the coming months through the meetings between DTI and IMMAP, as well as meetings between bloggers and their local DTI officials.
View the IMMAP’s full response here: www.immap.com.ph/message.
