Is it necessary to state place of sales promotion program when notification of sales promotion in Vietnam?

Is it necessary to state place of sales promotion program when notification of sales promotion in Vietnam?

Article 17 of Decree 81/2018/ND-CP stipulates notification of sales promotion, specifically as follows:

1. Traders must notify sales promotion activities to all Departments of Trade and Industry of localities where the sales promotion is conducted before conducting sales promotion programs in the forms prescribed in Clause 8 in Article 92 of the Commercial Law and Article 8, 9, 10, 11, 12 and 14 of this Decree. The notification document must be sent to the Department of Trade and Industry at least 03 working days before the sales promotion program is conducted (according to the receiving date specified in the delivery note if the document is sent by post, according to the date recorded in the confirmation note of if it is sent directly; according to the time recorded on the email system or the date recorded on the system if it is sent via the public online service system).

2. Traders not required to notify sales promotion if doing types of sales promotion prescribed in Clause 8 in Article 92 of the Commercial Law and Article 8, 9, 10, 11, 12 and 14 of this Decree including:

a) Traders doing sales promotion prescribed in Clause 1 in this Article of which the total prizes or gifts are valued under VND 100 million;

b) Traders selling goods and doing sales promotion via e-commerce website or promotional online website

3. Traders may select one of the following forms of notification:

a) Submitting a notification document to the Department of Trade and Industry of the locality where the sales promotion program is conducted by post;

a) Submitting a notification document directly to the head office of the Department of Trade and Industry of the locality where the sales promotion program is conducted;

c) Submitting a notification document with an e-signature or a scan of the announcement of sales promotion bearing the signature and seal of such traders to the email address published by the Departments of Trade and Industry;

d) Using the public online service system provided by the Department of Trade and Industry.

4. The notification document shall include an announcement of sales promotion according to Form no.1 provided in the Appendix issued together with this Decree.

5. Contents of sales promotion to be notified shall contain:

a) the name of the trader doing sales promotion;

b) the name of the sales promotion;

c) the place of sales promotion program (province, city where the trader conduct the program);

d) the type of sales promotion;

dd) promoted product;

e) promotional product (prize or gift);

g) time of sales promotion;

h) customers of the sales promotion (who benefits from the sales promotion)

i) prize structure and total value of the prize of the sales promotion;

k) details of the sales promotion

l) names of traders involved in the sales promotion, duty of each trader engaged in such sales promotion if the sales promotion is done by more than one trader.

6. The information on sales promotion provided by the trader must be published in suitable forms such as written form or via websites or others forms with equivalent effectiveness not sooner than the time of such sales promotion by state management agencies.

Information to be published must contain:

a) the name of the trader doing sales promotion;

b) details of the sales promotion;

c) time of sales promotion;

d) place of sales promotion

Thus, when making notification of sales promotion in Vietnam to the area where the promotion is performed, you need to specify the place of sales promotion program.

How much is fine for failing to specify the place of sales promotion program in Vietnam? 

According to Clause 1, Article 33 of Decree 98/2020/ND-CP, as amended and supplemented by Clause 24, Article 3 of Decree 17/2022/ND-CP, it is stipulated as follows:

1. A fine ranging from VND 5.000.000 to VND 10.000.000 shall be imposed for committing one of the following violations:

a) Failing to implement, or insufficiently or improperly implementing regulations on provisions and disclosure of information on sales promotion when doing a sales promotion;

b) Collecting fees, charges or money from customers or requesting customers to make any payments when doing a sales promotion by providing sample goods or services free of charge;

c) Failing to publicly organize the prize-awarding day for a promotional game of chance or organizing a prize-awarding day without the customers’ witness or a record made;

d) Failing to inform competent authorities about time and location where proof of prize-winning is attached to goods before issuing proof of prize-winning or failing to produce records of attachment of proof of prize winning to goods when implementing provisional games of chance where proof of prize-winning is attached to goods;

dd) Failing to implement or improperly implementing regulations on announcement of prize winners and sales promotion results;

e) Failing to award prizes within the prescribed time limit when doing a sales promotion with awarding prizes;

g) Failing to make accurate and timely certification of participation by customers in a customer loyalty program;

h) Failing to fully indicate and store required information on coupons for purchasing goods or services, contest entry forms, lottery forms, customer cards or coupons acknowledging the purchase of goods or services in customer loyalty programs.

i) Organize competitions or prizes that are not open to the public or not witnessed by customers’ representatives or without informing Departments of Industry and Trade where competitions and prizes are organized before said competitions and prizes take place when implementing sale promotional programs in form of selling goods or providing services together with entry form for customers in order to choose the winner according to predetermined methods and disclosed prizes where total prize pool ranges up to VND 100.000.000.

According to this Article, when you perform promotional activities but do not specify the specific place of sales promotion program in Vietnam, you may be fined from 5,000,000 VND to 10,000,000 VND.

Best Regards!