VI In modern business, promotions are one of the most effective marketing tools to help businesses boost sales and increase competitiveness in the market. However, for promotional programs to be implemented legally and transparently, businesses must strictly comply with state management regulations, especially administrative obligations to relevant authorities. Understanding which types of promotions require notification procedures not only helps businesses proactively plan their business but also minimizes unnecessary legal risks and administrative penalties. Let’s explore this issue with Pham Consult.
1. Forms of Promotion
Promotion is a commercial activity carried out by businesses to promote the sale of goods and services by offering customers certain benefits. According to Article 92 of the 2005 Commercial Law and Section 2, Chapter II of Government Decree 81/2018/ND-CP (amended and supplemented in 2024) detailing the Commercial Law on commercial promotion activities, forms of promotion include:
– Providing free samples of goods or services for customers to try;
– Giving away goods or services free of charge;
– Selling goods or providing services at a price lower than the previous selling price, applied during the announced promotional period (promotion in the form of price reduction);
– Selling goods or providing services accompanied by contest entry forms for customers to select winners according to announced rules and prizes (or other equivalent forms of organizing contests and awarding prizes);
– Selling goods or providing services accompanied by participation in programs involving chance, where participation is linked to the purchase of goods or services, and winning prizes is based on the participant’s luck according to announced rules and prizes (promotional programs involving chance);
– Organizing loyalty programs where rewards are given to customers based on the quantity or value of goods or services purchased, in the form of customer cards, purchase receipts, or other forms;
– Organizing cultural, artistic, entertainment programs and other events for promotional purposes.
– Promotions of goods and services where the implementation process utilizes the internet, electronic devices, and information technology applications.
2. Forms of promotion requiring administrative notification procedures
According to Article 17 of Decree No. 81/2018/ND-CP (amended and supplemented in 2024), businesses need to carry out administrative procedures to notify the authorities of their promotional activities before implementing the following forms of promotion:
– Selling goods or providing services accompanied by contest entry forms for customers to select winners according to the announced rules and prizes (or other equivalent forms of organizing contests and awarding prizes) (Article 12 of Decree 81/2018/ND-CP).
– Organizing a customer loyalty program, whereby rewards are given to customers based on the quantity or value of goods and services purchased, in the form of customer cards, purchase receipts, or other forms (Article 14 of Decree 81/2018/ND-CP).
In principle, businesses implementing promotional programs in the two forms mentioned above must notify all Departments of Industry and Trade in the localities where the promotion is organized. However, if the implementation of the promotional program in the two forms mentioned above falls under one of the following cases, the business will not need to carry out the notification procedure:
– Conduct promotional activities in the forms stipulated in Articles 12 and 14 of Decree 81/2018/ND-CP with a total prize and gift value of less than 100 million VND;
– Only conduct promotional programs in the forms stipulated in Articles 12 and 14 of Decree 81/2018/ND-CP for goods and services sold or supplied through e-commerce trading platforms, e-commerce trading platform applications, online promotional websites, and online promotional applications.
3. Documents and procedures for notifying promotional programs
a. Promotional Program Notification Dossier
According to Article 17 of Government Decree 81/2018/ND-CP (amended and supplemented in 2024), the promotional program notification dossier includes one Notification of Promotion Implementation using Form No. 01 issued with Government Decree No. 128/2024/ND-CP. The content of the notification of promotion implementation includes:
– Name of the business implementing the promotion;
– Name of the promotional program;
– Geographical area of promotion implementation (provinces and cities where the business implements the promotion);
– Form of promotion;
– Goods and services being promoted;
– Goods and services used for promotion (prizes, gifts);
– Time of promotion implementation;
– Customers of the promotional program (target beneficiaries);
– Prize structure and total prize value of the promotional program;
– Detailed content of the promotional program.
Note: In cases where multiple businesses cooperate in a promotional program, the names of all participating businesses, the specific content of their participation, and the specific responsibilities of each participating business must be clearly stated.
b. Procedures for notifying the implementation of a promotion
The notification dossier must be submitted to the Department of Industry and Trade at least 3 working days before the promotion is implemented (based on the date of receipt recorded on the shipping document or equivalent forms in the case of submission via postal service, based on the date recorded on the receipt of the dossier in the case of direct submission, or based on the date recorded in the system in the case of submission via the online public service system).
Businesses prepare one set of notification dossiers for the implementation of a promotion and submit them through one of the following methods:
– Submit one notification dossier via postal service to the Department of Industry and Trade where the promotion is organized;
– Submit one notification dossier directly at the headquarters of the Department of Industry and Trade where the promotion is organized; – Submit one notification dossier through the National Public Service Portal or the Provincial Administrative Procedure Resolution Information System.
Note: Information about the promotional program announced by the business must be publicly disclosed by the state management agency in appropriate forms (written documents, electronic information pages, or other equivalent forms) and no earlier than the start time of the promotional program. The information to be publicly disclosed includes:
– Name of the business implementing the program;
– Detailed content of the program;
– Promotion period;
– Geographical area where the promotion is implemented.
