GUIDELINES FOR SALES PROMOTION REGISTRATION

CONSUMER PROTECTION COUNCIL

GUIDELINES FOR SALES PROMOTION REGISTRATION

Part 1.  Introduction

Part 2.   Definition of terms

Part 3. Registration Requirements

Part 4. Evidential Support of Application

Part 5. Application Assessment Process

Part 6. Pre-approval requirements

Part 7. Provisional Approval

Part 8. Draws

Part 9. Denial of Application

Part 10. Sanctions

Part 11. Withdrawal of Approval

Part 12. Promotions/ Closure

Part 13. Appeal

Schedule 1. Application form for Sales Promotions

Schedule 2. Exit Report of compliance on Sales Promotions

Schedule 3. Approved fee structure and Penalties

S   Schedule 4. Approved Penalty Structure

  1. Introduction
  1. The Council as part of its core mandate pursuant to Sections 11 and 12 of the Act is authorised to regulate any advertisement/statements directed at consumers for the purpose of affecting them with respect to purchasing and or using any product/service.
  1. The Consumer Protection Council (Council) is empowered pursuant to Section 31 of the Consumer Protection Council Act Cap 25 LFN 2004 (The Act) to make regulations.
  1. The Council by this Guidelines, in furtherance of the consumer protection council regulation on sales promotion 2017, “whatever the subject of the regulation is”, provides guidance and direction on the process of seeking and securing approval for any sales promotion.

  1. Definition of terms

  In these guidelines unless the context otherwise requires, the following terms shall have the following interpretations: check laws definition for                  

    whether numbering is done

   “Act” means the Consumer Protection Council Act, Cap 25, LFN 2004 or any succeeding legislation thereof.

   ‘Council’ shall means the Consumer Protection Council or any succeeding body, entity or agency.

   ‘Director General’ means the Director General of the Council or any succeeding nomenclature.

   ‘Application’ means a formal request to the Council on form A in schedule 1; any modification thereof or otherwise acceptable format by the            

     Council, for the purpose of seeking approval to engage in a sales promotion.

    ‘Promoter’/ ‘Applicant’ means any person, company, firm, organisation including any agent or representative thereof for the purpose of making      and or

     processing an application.

   ‘Sales promotion’ means a marketing strategy, tool or devise, that involves presenting a range of direct or indirect benefits in exchange for                

    exercising a choice or decision and or making a purchase of a good, service or other product to the exclusion or in preference to another while the      

    promotion subsists or any other relevant period within which it is reasonable to conclude that the decision made the consumer/decision maker or      

   purchaser was or could have been motivated by the presentation.

  ‘Draws’ means an act of selecting participants randomly, from a bag or container, to determine a winner.

  ‘Approval’ means the Council’s formal authorisation of the commencement of the Sales Promotion.

  ‘Sell-in-time’ means the duration of the Promotion

  1. Registration Requirements
  1. The Promoter shall submit an application no later than 21 (twenty one) days prior to the proposed commencement of the sales promotion.  
  1. The Promoter shall submit an application to the Council electronically or otherwise at the Council’s offices.
  2. The sell-in-time of sales promotion is a maximum period of one year. Any extension must be subject to review and prior approval of the Council first obtained.
  1. Evidentiary Support

     The application shall include:

  1. Proof of Incorporation/Registration of the entity engaging in the promotion.
  2. Samples of proposed statements for dissemination in the media; print, electronic or otherwise.
  3. Proof of quality standards, unit cost and total cost of each of the gift items to be used for the sales promotion.
  4. Undertaking to conduct a free and transparent promotion exercise.
  5. Addresses of redemption centres if any.
  6. Proposed Means of dissemination/advertisement of the sales promotion.
  7. Any other applicable regulatory approvals.
  8. All visual and audio statements/ advertisements must include a statement that the Council approves the promotion. Failure to comply will attract a penalty as prescribed in schedule 4
  9. Evidence of promotional gift items relevant to the sales promotion must be available for inspection prior to commencement of the promotion.
  10. Clearly identify redemption locations regarding the sales promotion.
  11. The Council shall have access to redemption and any other relevant locations with regards to the sales promotion.
  12. Any changes to the terms of the Promotion must receive the prior approval of the Council.
  13. The Council’s approval to extend any promotion must be procured prior to the expiration of the prior approved and existing Promotion; there shall be no extensions beyond the total period of one (1) year.
  14. Making false entries on the Application or providing false/misleading information or documents, as well as making false statements in connection with the process is an offence under S.19 of the CPC Act. 1992.
  15. Provide relevant contact details including telephone numbers and email addresses.
  1. Application Assessment Process
  1. Upon receipt of an application, the Council shall within 3 (three) working days conduct an initial review of the application to determine if the application is complete, and whether the supporting information is sufficient.
  2. In the event that the Council requires further information to proceed, the Council shall send a Request for Further Evidence (RFE) within 3 (three) working days above of the initial review.
  3. Upon completion of the application; whether from the original date of submission or receipt of the RFE, the Council shall within 7 (seven) working days make a decision with respect to the Application.
  4. The Council’s decision shall be conveyed in writing or electronically, within 7 (seven) working days of the decision- (Notice Of Decision- NOD).
  5. Where the decision is an approval, the NOD shall include any further instruction including applicable fees and payment instructions, which fees would be the total amount charged for the promotion less the application fee
  1. Pre- Approval requirements
  1. Fully completed Application Form
  2. All required documents included with the Application
  3. Payment of Assessed Approval Fees
  1. Emergency Approval
  1. In limited circumstances, particularly where a promotion is proposed to begin in less than 30 days the council may where it deems fit, accept and process the application within 48 hours.
  2. This emergency application process will be upon payment of a premium service application fee of N500, 000. 00 and a total promotion fee as prescribed in schedule 3.
  3. The Provisional Approval letter shall state the conditions to which the promotion is subject to.
  1. Draws
  1. Invitations to the Council to monitor draws must be received no less than 14 (fourteen) days to the scheduled draw.
  2. A complete list of winners, including contact details and prices won must be provided to the Council not later than 3 (three) days after the ‘draw’.
  1. Denial of Application
  1. The Council reserves the right to reject any Application for a sales promotion. In the event of such denial, the Council shall notify the promoter by an NOD within 3 (three) working days. The NOD conveying denial shall state reasons for the denial.
  1.  Sanctions/Penalties

     It shall be a violation of law: and sanctions or penalties the Council may be imposed when;

  1. To commence a promotion prior to the council’s Approval
  2. Fail to comply with any condition imposed by the council
  3. Where a promotion fails to comply with this guidelines and any prevailing law,
  4. To change or modify any terms of the approved promotion without the prior approval of the council.
  5. To engage in any conduct in the course of the promotion that the council determines to be exploitative.
  1. Revocation of Approval
  1. In addition to any other penalties under this guidelines or any law, the council may revoke any approval of a promotion where the council determines it is appropriate in the interest and protection of consumers
  2. Upon such revocation the promotion shall be immediately discontinued.
  3. The promoter shall immediately announce the discontinuation using the same dissemination channels with the same scope and visibility by which the promotion was advertised.
  1.  Appeal
  2. Where an Application has been rejected or approval revoked, the Promoter may appeal such decision by filing an appeal to The Director General of the Council.
  1. An appeal must be in writing and received by the Council within seven (7) working days of the rejection or revocation stating the reasons for the appeal, and or providing additional information for the appeal or possible reconsideration by the Council.