What is the Premiums and Representations Act?
When conducting promotional activities or campaigns, you may use words that motivate customers or hold gift campaigns to encourage them to visit your store and make purchases. In such cases, it is important to be aware of the Premiums and Representations Act. The Premiums and Representations Act is often abbreviated to the Premiums and Representations Act, but its official name is the Act against Unfair Premiums chile phone number library and Misrepresentations.
- False representation of the quality, content, price, etc. of products or services
- Offering excessive prizes to attract customers
This law regulates “representations” and “premiums” in order to prevent the two points mentioned above, and was enact with the aim of protecting an environment in which consumers can independently and rationally choose good products and services.
The first point, “representation,” prohibits the following “unfair representations” regarding the contents, prices, and other transaction terms of products and services.
1.
“This is very good quality (standards, contents)!” is misleading consumers, but in reality it is not.
2. Misleading representations of benefits
“This is a great price (trade terms)!” is misleading consumers into thinking that it is actually a good deal, when in fact it is not.
3. Other indications that may be misleading
The following items are specifically designat as being likely to mislead consumers, and inappropriate labeling is prohibit.
- Non-juice soft drinks, etc.
- Country of origin of the product
- Consumer crit financing costs
- Real estate bait ads
- Bait and switch ads
- Paid nursing home
This includes packaging strengthen your business and labels, in-store displays, pamphlets and instructions, flyers, newspaper and magazine advertisements, websites, commercials (television, radio, etc.), and sales talk (door-to-door sales, telephone, etc.).
The second point, “prizes,” prohibits the “provision of excessive prizes.” Prizes are defin as “goods, money, etc. provid as an accessory to a transaction as a means of attracting customers,” and it is important to note that they global seo work are not limito goods. This also applies to things that indirectly provide economic benefits, such as movie, theater, or concert tickets, invitations to travel or sporting events, and points. However, this does not include discounts or after-sales service. In order to prevent the “provision of excessive prizes,” rules on the provision of prizes are set for each type of contest.
We will go into more detail about the prize amounts for each prize draw in the next section.