by Paul Banzea, Associate at Mihai & Co. Business Lawyers
“Don’t let what you cannot do interfere with what you can do.”
(Robert Wooden)
The specifics of the rules and regulations of the campaign
The provisions of the campaigns’s regulations are always mandatory for all the participants whom, by taking part in the campaign, are presumed to have read and to know the provisions of the Regulation and give their consent to take part. Participating in the campaing will be considered as consent with regards to the application of the rules and regulations of the campaign. At the same time, the participants undertake to comply with all provisions and with all terms and conditions of the Regulation. In the public Rules of the campaign the Organizer must mention the company’s contact details, as well as the registration number with the authorities from Romania.
The Official Rules of the Campaign should to be available to any applicant free of charge during the entire period of the campaign, in any of the following ways:
- Displayed at the Welcome Customer Service;
- In an electronic format, by accessing the website of the company;
- Following a written request sent to the Organizer.
This is also a practical requirement as the larger public could be suspicious with regards to a campaign lacking transparency.
At the same time detailed information on the organization of the campaign may be requested and given by phone, in a predetermined daily timeframe. If the Organizer chooses, the campaign may be advertised for the purpose of informing the public, including through TV, radio or online advertising and/or other informative materials. The information that such materials may contain may be interpreted in accordance with the provisions of the Regulation. The Organizer should expressly reserve the right to amend and/or complete the Rules, as well as the right to suspend and/or cease and/or discontinue the promotional campaign, provided that the participants are notified in advance of any change to any of its provisions. Any amendments/additions to the provisions of the Regulation shall be included in additional acts and shall be communicated to the public by the same means and in the same way as the original announcement. The Organizer should be careful with publicly announcing the identity of the winner/winners, especially as it is well known that the rules on data privacy have become more strict and demanding.
The Organizer of the campaign has to determine the conditions for participating in the campaign. Most often those that can participate are individuals of over 18 years of age having their domicile or residence in Romania. Additionally, the participants normally have to buy and pay products from the stores mentioned in the Regulation and comply with the provisions of the Regulation. The Organizer should expressly specify in the Regulation that all employees of the Organizer, as well as the first degree relatives (children and parents) and the affinities (their spouses) are not entitled to participate to the Campaign. The prizes that will be awarded to the winners of the campaign should be clearly specified in the Regulation, in order to ensure full transparency. For the same reasons, the total money value of the prizes will be specified, with VAT included.
The campaign may be organised and take place exclusively in a specific store situated in a specific area or in multiple locations, as determined through the Regulation. The campaign will start on a expressly specified date, at a specific hour and will take place until a corresponding end date, at a specific hour.
We encourage that the Organizer takes any and all necessary legal measures regarding attempts of fraud, abuse and/or any other attempts that might damage the company ̍s image. Within the Regulation, the Organizer has the possibility to stipulate a clause in order to protect itself and deny responsibility, ensuring that it cannot be involved in any claim regarding the prizes as well as regarding alleged supplementary costs incurred by the participant in connection with the campaign. Such clauses have to take in consideration the exceptions applicable under Government Ordinance no. 99/2000 regarding the commercialization of products and services on market. The Organizer could for example stipulate that all claims will be taken into consideration only during the time that the prizes are awarded and not after. The limitation of the Organizer’s liability has to be established by taking the specific type of campaign into consideration.
The organizer of the campaign must also take into consideration the legal fiscal obligations related to the prizes awarded within the campaign, as such obligations are personal and cannot be passed on to another entity or to the winner of the prize. Thus, if the value of the prize is higher than the minimum legal value as per the provisions of the Romania Fiscal Code, the Organizer has the obligation to pay the taxes for the prizes awarded during the campaign. A disclaimer would only be possible for any additional taxes regarding the prize or its usage – i.e. if the prize is a car and in order for it to be used the owner has to first register it, which requires certain taxes to be paid.
Conclusion
Seeing that the zero sum game is getting more and more pernicious as social inequalities are increasing, any attempt to engage in win-win strategies can lead to consistent and sustainable growth. Be it a result of a collaboration between different companies that join forces and resources or an internal project to raise awareness and client fidelity, the promotional campaign has all the characteristics of being beneficial to the Organiser and his business partners and to the public at the same time.
The Pareto distribution principle (or the 80-20 rule) explains why a large portion of wealth in society is held by a small fraction of the population. This rule may also apply in relation to the number of clients of a company. A successful promotional campaign may be the decisive step which will lead to exponential growth when implemented accordingly.
The 80/20 rule also states that 20 percent of your efforts will account for 80 percent of your results. With this in mind, considering the complexity of a services or retail business, a promotional campaign project might just be the small step necessary that could bring exponential results.
References
- The Romanian Fiscal Code;
- Government Ordinance no. 77/2009 regarding the organising and exploitation of gambling activities;
- Government Ordinance no. 99/2000 regarding the comercialization of products and services on the market;
Links
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