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On October 10, 2024, the Government issued Decree 128/2024/ND-CP amending and supplementing a number of articles of Decree 81/2018/ND-CP dated May 22, 2018 of the Government detailing the Law on Commerce on trade promotion activities. Here are some key points from this Decree:

Promotional goods on display at a supermarket (photo: Ngoc Thach)

1. Supplement some cases when maximum limit on value of goods and services used for promotion is not applicable

Clause 1, Article 1 of Decree 128/2024/ND-CP introduced subjects exempt from the maximum limit on the value of goods and services used for promotion. This is a new point of Decree 128/2024/ND-CP on promotional activities.

According to the new regulations, in addition to the cases specified in Decree 81/2018, other forms of promotion, if approved by the state management agency of commerce, will not be subject to the maximum limit on the value of goods and services used for promotion. Specifically, promotional activities of goods and services that use the internet, electronic devices and equipment, and information technology applications as prescribed in Article 15 of Decree 81/2018/ND-CP.

2. Remove the regulation limiting the time period for implementing concentrated promotional programs

According to the provisions of Clause 5, Article 8 of Decree 81/2018/ND-CP, centralized promotional activities chaired by state agencies can only be organized within a specified period of time, in the form of promotional hours, days, weeks, months, and seasons.

However, in reality, provinces and cities have now opened stores and centers specializing in selling genuine products that are in inventory, outdated goods, defective goods, etc., to develop local tourism, economic and social activities, and to boost product consumption. 

The limited duration of this promotion leads to poor performance of these stores and centers.

Therefore, Decree 128/2024/ND-CP no longer limits the organization time of the above-mentioned concentrated promotional activities.

3. Simplify administrative procedures for notification of promotional activities for some promotional activities

Starting from the effective date of Decree 128/2024/ND-CP, traders are no longer required to notify the relevant state agency about certain promotional activities. These activities include:

- Organizing events for customers, such as cultural, artistic, or entertainment programs, for promotional purposes;

- Providing free samples of products and services for customers to try;

- Giving away goods and services without any charge;

- Selling goods or providing services at prices lower than their previous selling prices during the announced promotional period (discount promotions);

- Offering goods and services with purchase or service vouchers.

This change simplifies the process for traders engaged in these promotional activities. This update to the regulations regarding the notification of promotional activities aims to simplify administrative procedures and create more favorable conditions for businesses engaged in these activities.

4. Amend some regulations on announcing results, awarding prizes and reporting results:

Accordingly:

- Time limit for announcing winning results and awarding prizes: must not exceed 45 days from the end of the promotion period, except in cases of force majeure.

- Within 45 days after the award period expires, the merchant implementing the promotion program must submit a written report to the competent state management agency detailing the results of the promotion program.

- In case there is no winner in the lucky promotion program, within 7 working days from the date of receiving the trader's report, the state management agency shall decide to collect 50% of the announced value of the prize.

- Within 45 working days from the date of receipt of the collection decision of the state management agency, the trader is responsible for paying 50% of the announced value of the unclaimed prize from the promotional program (previously 15 days).

Decree 01/2021 / ND-CP takes effect from January 4th 2021.

Reported by Ngoc Thach – Translated by Ngoc Huynh