Unfair marketing practices
The following are prohibited acts of marketing or promotion of goods or services:
- Holding a promotion that provide false or misleading information about prizes;
- Untruthful promotion or providing false or misleading information about the offered goods and services with an intent to deceive customers;
- Discriminating against similar customers in different area within the same campaign;
- Offering free-trial goods to customers in exchange for their redemption of similar goods produced by another company, to the end persuading them to use the goods being promoted;
- Abusing customer trust or otherwise taking advantage of customers’ lack of information or experience, with an intent to further commercial objectives;
- Creating direct comparisons between goods and/or services and those of other traders, organizations or individuals with an intent to perform unfair marketing practices;
- Offering curative medicines for human use (including those already permitted for distribution) for promotion purposes, unless promoting for pharmaceutical traders;
- Conducting any other promotions activities prohibited by law.
Promotions and marketing campaigns must be conducted in a lawful, honest, public and transparent manner and may not harm the legitimate interests of consumers, other traders, organizations or individuals.
Companies staging prize promotion schemes must ensure that prizewinners are granted their prizes and are obliged to quickly and thoroughly settle any complaints. The companies must also ensure the quality of the promoted goods, services and promotional goods, services.
Maximum value of promoted goods or services
The maximum value or discount rate for promoted goods or services may not exceed 50% of their pre-promotional price.
Permissible promotional methods and strategies
- Companies and business owners may market their goods and services in the following ways:
- Provide samples of goods or offer free-trial services;
- Provide goods or services free of charge not accompanying with selling or purchasing goods or services;
- Hold promotional sales in which goods are sold or services are provided at a discount. Where the price of a good or service is established by the State, companies must comply with any applicable law and regulation;
- Sell goods or provide services together with coupons benefitting customers in one or more ways;
- Sell goods or provide services together with prize-contest entrance tickets to be used in prize drawings, as according to the announced prize contest rules;
- Allow customers, upon purchasing a good or service, to participate in games of chance to win prizes, as according to the announced game rules;
- Establish customer loyalty programs in which customers are eligible to receive gifts on the basis of the quantity/value of goods or services purchased, as recorded on customers’ cards or coupons acknowledging the prior purchases;
- Organize cultural, artistic or entertainment programs or other events for marketing purposes;
- Use any other marketing methods or strategies approved by the relevant State commercial management agency.
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