THE MAXIMUM VALUE OF PROMOTIONAL PRODUCT IN SALE SEASON SHALL BE 100%
On May 22, 2018, the Government issues the Decree No. 81/2018/ND-CP on detailing the regulations of Commercial Law on trade promotion. This Decree takes effect on July 15, 2018.
Accordingly, money can also be used as promotional merchandise, except for sales promotion conducted in the forms: Provision of sample goods or services free of charge; Sale of goods or provision of services at discounted prices during the announced period of sales promotion; Sale of goods or provision of services together with coupons.
The promotional value of a unit of promoted product must not exceed 50% of the price of such promoted product unit before the promotion.
For time-limited sales promotion (effective within certain frame of hours, days, weeks, months or seasons), the limit shall be 100% of the value of the promotional product. Such limit shall also be applied to sales promotion activities included in programs or activities of sales promotion decided by the Prime Minister.
Also in accordance with this Decree, the maximum discount must not exceed 50% of the prices of such promoted product before the sales promotion. 100% discount may be also applied to sales promotion activities.
Besides, businesses not registering multi-level marketing activities must not conduct sales promotion in multi-level form, in which there are multiple levels of participants who benefit from purchase by participants in lower levels.
