Restrictions on prize types and prizes
Restrictions on prizes vary depending on distribution method as follows:
●General Prizes
General contests offer prizes bas on the merits of certain conditions (such as collecting application stickers to apply, drawing lots, or answering a quiz correctly), etc. (such as the product rank being determin by the china phone number library number of points). If the transaction value of the goods or services is less than 5,000 yen, the maximum prize amount is 20 times that amount, and if it is 5,000 yen or more, the maximum prize amount is 100,000 yen. In either case, the total amount of prizes is set at 2% of the total plann sales.
●Joint Prize Sweepstakes
This refers to a lottery run by businesses in a certain area, such as a shopping district lottery or a lottery for a gourmet tour of X city! In this joint lottery, the maximum prize amount is 300,000 yen, regardless of the transaction seo and google ads: how do they influence each other? price of the goods or services, and the total amount of prizes is 3% of the total expect sales.
●Free gifts
These are gifts that are given to all customers who purchase goods or services, such as points for visiting a store, first-come-first-servgifts, or freebies in bags attach to plastic bottles. The maximum limit for gifts is 200 yen if the transaction value of the goods or services is less than 1,000 yen, and 2/10 of the transaction value if the transaction value is 1,000 yen or more.
Even if the company that ran the campaign did not act intentionally or negligently, if it violates the law, it will be subject to a corrective order or a surcharge payment order, so when running a gift campaign, it is necessary to understand the Premiums and Representations Act before planning it. It may not be difficult if the prize is a single item with the same conditions, such as a general prize or joint prize, but if the prize changes depending on the merits of the conditions, such as a general prize or joint prize, you ne to be careful about the limit.
Digital gifts are prizes with clear and simple
It is necessary to prepare various items, and preparing physical prizes entails a lot of work, such as arranging each prize, shipping global seo work costs, adjusting the price and quantity of each prize and the total prize amount, inventory management after winning and losing…. As a way to solve these issues, we recommend using digital gifts when distributing prizes and novelties.
Digital gifts have the following advantages, which help ruce the risk of violating the Act against Unjustifiable Premiums and Misleading Representations:
- You can choose from a wide range of categories and price ranges, and you can flexibly set the amount, quantity, etc.
- Since there is no ne to arrange products or manage inventory, this leads to cost ructions in labor costs, shipping fees, etc.
- Since prizes can be distribut via email or social mia, hygiene is also clear. Customers can receive them via smartphone, making it easy to use.
- It can be un a variety of situations, such as member registration, SNS following, survey rewards, and mass distribution, depending on the target and volume.
was creatto protect consumers’ choices bason correct judgment, but it also plays a role in preventing excessive marketing activities by companies and guiding them to proper promotions. When planning to distribute prizes or gifts, first make sure you understand the contents of the Act on Premiums and Representations, and then aim to implement the most attractive campaign possible within those rules.