Social Media Marketing for Newbies

Social media is like cocktail conversation. Fun or zzz....

I often get asked, "Janette, I'm new to social media. How can I use it to help my career or business?"

The answer to that question can be too broad. But here's the minimum I can immediately think of:

1. Write about what you know in a blog or website to benefit readers (and prospective customers).

Make yourself an authority on the subject niche where your small business falls in. Put this content on your business site or blog to help create a trustworthy image.

If you don't have a blog or website yet, you can use platforms like Wordpress, Blogger, Tumblr, among others to build your blog.

2. Curate and share relevant content.

You can't just use social media to keep plugging what you do or write about. Otherwise, your peers will tune out. Take time to share content, from other reliable sources, that can be relevant to others or make them feel good or make them laugh.

When it comes to sharing your own content, to be seen as remarkable requires creativity in spreading it. Repeat what works and always add a new variation. It may require spending more to reach out to new markets. Just don't be regarded as repetitive and copycat. Own your style.

3. Reach out and engage with like-minded online peers.

Don't limit yourself to your online connections. Join relevant groups and gatherings to meet new people.

My Twitter following didn't just grew by accident. From experience, a great entry point is through events where live coverage takes place. Speakers, organizers, influencers, attendees are enthusiastic reading about tweets, thoughts, posts and sharing good ones found in their network. I met lot of like-minded folks this way and develop meaningful connections with.

4. Use social media as one of the means to contact you.

If you want more people to connect with you through social media, be an active user of it whether for business or pleasure.

Personally, I don't give business cards anymore and ask people to use Twitter (and Facebook) as a means to reach out to me. I proactively add people who register in our activities (who shared their Twitter id) or share my content / hashtag. This is usually appreciated by followers and shout-out yielding to more friendly connections.

5. Read Internet marketing and social media blogs for up-to-date perspective from different sources.

I suggest using tools like Google Alerts to be kept posted on the latest social media developments straight to your email.

Check out Ben Francia who informs people about Internet marketing while making it easy to understand to most folks.

You can also join our free Digital Influencer Boot Camp webinar sessions.


6. Check out what your favorite brands are doing through social media. Learn from it.

The best way to learn how social media can be used for business is by observing how popular brands, companies, and personalities do it.

Airline company Cebu Pacific is a tourism industry shaker who made travel affordable by offering very low prices (with an early bird purchase requirement) got the Internet community abuzz and its offerings can easily go viral.

Its "fun" image and game activities onboard was perfect for social media. Users naturally share the promotions online and invite their friends so they can travel as a group.

Telecommunication entities like Smart and Globe are also great examples on how they use social media to disseminate word on their products and services while using the platform to render customer service at the same time.

January 5: Free Webinar: Briefing on Professional Blogging, Social Media Marketing & Advertising as a Business

In preparation for our online program on Professional Blogging, Social Media Marketing & Advertising as a Business (starting January 16), there is a free webinar scheduled on January 5 for those who want to know more about it.

Sign-up for this free webinar session on January 5, Thursday, 7 pm (Manila time, GMT+8). You need a computer with Internet connection and headset to join this free webinar.

Those joining Professional Blogging, Social Media Marketing & Advertising as a Business program, that will start this January 16, will go through a three-week course. It shall cover the following:

• Tap blogs and social media in various ways for promotion, awareness, and support for marketing and entrepreneurial pursuits. 
• Understand the available blog and social media advertising platforms, costing, and analyze a blog’s effectiveness.  
• Profile blogs, bloggers, social media users based on their reach and influence.

For the hands-on project, the student is tasked to design and run a blog & social media marketing and advertising program. The overall performance of the said campaign during the time frame allotted shall serve as basis for grading.

Sign-up for this free webinar session on January 5, Thursday, 7 pm (Manila time, GMT+8). You need a computer with Internet connection and headset to join this free webinar.

Individuals, Bloggers, Businesses need a DTI Sales Promotion Permit even if there is no purchase required

DTI Sales Promotion Permit Application Process

View more presentations from Janette Toral

Last July 28, the DigitalFilipino Club and IMMAP discussion / briefing on online promotion with the Department of Trade and Industry gave a better understanding on the intent of the DTI Sales Promotion permit process that makes it a requirement even if there is no purchase required. The bottom-line is to protect the consumer joining these online promotions. Lessons learned from the said briefing: DTI DAO 10-02 series of 2010: Addenda to DAO 2 series of 1993 or the Rules and Regulations Implementing Rep... 1. Are bloggers, individuals, businesses required to get a DTI Sales Promotion permit even if there is no purchase required?


The answer is YES, individuals, bloggers, and businesses do need a DTI Sales Promotion Permit whenever they run an online or offline sales promotion even if there is no purchase required as you are targeting consumers to participate. This is in compliance with the Consumer Act of the Philippines whose application to E-Commerce transactions is explained. (Note that the running of an online promotion, the activities that take place in it, whether commercial in nature or not, is an e-commerce transaction. The E-Commerce Law recognizes e-commerce as activities that can be commercial or non-commercial in nature.) Here are some of the provision under the Consumer Act of the Philippines:

"Consumer" means a natural person who is a purchaser, lessee, recipient or prospective purchaser, lessor or recipient of consumer products, services or credit. 

"Sales Promotion" means techniques intended for broad consumer participation which contain promises of gain such as prizes, in cash or in kind, as reward for the purchase of a product, security, service or winning in contest, game, tournament and other similar competitions which involve determination of winner/s and which utilize mass media or other widespread media of information. It also means techniques purely intended to increase the sales, patronage and/or goodwill of a product. 

Art. 116. Permit to Conduct Promotion. - No person shall conduct any sales campaigns, including beauty contest, national in character, sponsored and promoted by manufacturing enterprises without first securing a permit from the concerned department at least thirty (30) calendar days prior to the commencement thereof. Unless an objection or denial is received within fifteen (15) days from filing of the application, the same shall be deemed approved and the promotion campaign or activity may be conducted: Provided, That any sales promotion campaign using medical prescriptions or any part thereof or attachment thereto for raffles or a promise of reward shall not be allowed, nor a permit be issued thereof. 

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(Update - August 4, 2011) However, until November 4, 2011 the following limit applies for bloggers running online promotion (as agreed last August 4, 2011 during the DTI discussion with bloggers). 

• For personal bloggers with self-purchased incentives or tokens for online promotions (discount, raffle, contest, games, premium, redemption), for as long as the annual value given out is less than 1 million pesos, no DTI Permit necessary.
• For sponsored incentives or tokens for online promotions, for as as long as the annual value received and then in turn given out by the blogger is no more than two hundred thousand pesos (P200,000), no DTI Permit necessary.
• Individuals and Bloggers are expected to be clear in their online promotion mechanics and clearly stated on their website or blog.

Exclusions: CURRENTLY DOUBLE-CHECKING THIS

• If the blogger got specifically chosen by a brand or agency to carry out an online promotion and received payment for doing such, DTI Permit is necessary and the blogger shall be the one to apply.
• If the blogger collects payment from participants as part of its sales promotion, DTI permit is necessary.
• It doesn't cover worldwide contest.
• The limits DTI stated is only good for the DTI Sales Promotion Permit. Requirements of other government agencies are not included herein.

Update (November 5, 2011)


As no regulations were successfully issued, current regulation still holds. All promotions, with or without purchase required, needs a DTI Sales Promotion Permit.


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2. Bloggers and individuals who wants to carry out an online promotion, under their personal name, needs to present a Mayor's Permit and all documents necessary when applying for a DTI Sales Promotion Permit as stated in the corresponding application form: DTI References:

• Application Form for Sales Promo Permit for Contests  PDF format (31 kB)
• Application Form for Sales Promo Permit for Discount  PDF format (22 kB)
• Application Form for Sales Promo Permit for Games  PDF format (30 kB)
• Application Form for Sales Promo Permit for Premium  PDF format (30 kB)
• Application Form for Sales Promo Permit for Raffle  PDF format (32 kB)
• Application Form for Sales Promo Permit for Redemption  PDF format (25 kB)

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(Update - August 4, 2011) CURRENTLY DOUBLE-CHECKING THIS


However, until November 4, 2011, the Mayor's Permit requirement shall not be enforced to bloggers as a result of the DTI consultation session last August 4, 2011. Individuals can register as themselves should their personal and sponsored online promotions exceed the indicated limits.


Update (November 5, 2011)


As no regulations were successfully issued, current regulation still holds. All promotions, with or without purchase required, needs a DTI Sales Promotion Permit.



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 3. For businesses, it is tricky if one decides "not to register" a no-purchase-required promotion.
DTI or any government agency that covers your promotion, under the Consumer Act of the Philippines, can run after you if a consumer files a complaint about it citing that "you are running a promotion without the required DTI Sales Promotion Permit".

4. What is IMMAP's position on the DTI issue? 
The organization is proactive in finding a solution that will work to all parties concern. The association also recognizes the need to update existing laws. Finding a workaround in between is being explored that will recognize new forms of promotion while maintaing adherence with the Consumer Act of the Philippines.

5. I am a blogger based outside of Metro Manila. How do I learn more about the DTI Sales Promotion Permit Process?

I suggest checking first if there is a bloggers association in your community. E-mail and call your local DTI office to request for a meeting - to be given clear information on the DTI Sales Promotion Permit process.

6. How does a DTI Sales Promotion Permit protect not only the consumers and contest joiners, but the business or individual organizing a promotion as well?

 The Consumer Act, as implemented by the DTI and other government agencies, primarily protects the consumer. However, in the course of running the promotion, if you have an abusive joiner that will game the system and got caught, DTI can also make them liable. This I believe provides a sense of security rather than making this decision, as a promotion organizer, on your own.

7. What potential problems might occur from holding contests, promos and giveaways without a DTI permit? What are the benefits for securing a permit?

In addition to what I mention in #6, if you have sponsors or partners who signed a commitment supporting your promotion (and this is included when you submit your permit application), it binds them with you in ensuring that the promises are delivered as stated in your promotion. If they don't deliver or back-out, it makes them equally liable. (under the DTI Permit process) Without a DTI permit, if your sponsors / partners backs-out on you halfway in your promotion, that accountability rest on you who made that promotion especially if those who joined files a complaint with the DTI.

8. The Consumer Act of the Philippines is already old. How can it be used to cover online promotions?

The E-Commerce Law of the Philippines (Section 33c), from my understanding, empowered all existing laws to recognize its electronic counterpart. They also released a Department Administrative Order 10-02 Series of 2010 to cover no-purchase-required type of promotions.

9. A lot of personal attacks was said about you because of this. What can you say about it?

No harm done on issues-based discussion as that is certainly necessary. For the non-issues-based, I updated my blog post on the "politics of blogging" and added #11.

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(Update - August 4, 2011) Moving forward:


1. The DTI will be forming a Technical Working Group (TWG) headed by the Bureau of Trade Regulations and Consumer Protection to formulate DTI Sales Promotion Permit Guidelines that will define the process for online promotions. The guideline is aimed to be release on or before November 4, 2011. Got designated during the August 4, 2011 DTI consultation meeting to submit names of people who can be part of the Technical Working Group. 

Based on the discussion last August 4, the following groups were identified as initial TWG members:

• Internet and Mobile Marketing Association of the Philippines (digital marketing)
• Juned Sonido (blogging)
• DigitalFilipino Club (e-commerce)

I suggested the following groups to be invited, to send a representative, as part of the TWG.

• Philippine Retailers Association (retailers)
• Philippine Association of National Advertisers (advertisers)
• 4As (ad agencies)
• Mobile Marketing Association Philippines Council (mobile marketing)
• SEO Organization Philippines (search engine marketing)
• Computer Professionals Union (computer users)
• Consumer Union of the Philippines (consumers)
• Association of Marketing Educators of the Philippines (education / academe)
• Philippine Marketing Association (marketers)
• National Bloggers Association (bloggers - currently under formation)

The idea for the above is to represent the perspective of relevant stakeholders who are one way or another involved in online promotions, with or without purchase required, either as an organizer, service provider, or as a consumer. 


Note that TWG members provide inputs and insight in the drafting of policies representing the interest of their association or group and industry sector. It must be clear to all parties that the TWG-Chairman (DTI-BTRCP) shall have the final say on what it will adapt that will be fair to all parties concern while protecting the interest of the consumer as its highest priority as mandated in the Consumer Act of the Philippines. All parties in this process shall respect such.




Apart from the TWG, the DTI-BTRCP will hold 2 to 3 public hearings as well where the draft version will be open for comments. Associations participating, especially their designated representative, should allot time in reviewing the following existing policies:

• DTI-DAO 10-04 series of 2010 No expiry date on gift card / certificates / checks sold beginning July 1, 2012
• DTI-DAO 10-02 Series of 2010 Addenda on Chapter IV Sales Promotion
• Joint DTI-DOH-DA DAO 1 series of 2008: Consumer Protection in E-Commerce Transactions
• DTI-DAO 8: Protection of Personal Data in an Information and Communication System
• DTI-DAO 06 series of 2007 on Administrative Fines
• DTI-DAO 5 series of 2007 - Rules on Mediation in the Resolution of Inquiries, Complaints and Cases Filed with the DTI in violation of the Consumer Act
• DTI DAO 7 series of 2006 - Instituting Simplified and Uniform Rules of Procedure for Administrative Cases filed with the DTI for Violations of the Consumer Act
• E-Commerce Law
• DTI-DAO 2 Series of 1993: IRR on Sales Promotion - Consumer Act of the Philippines
• Consumer Act of the Philippines
• a few more to be added..

Update - August 17, 2011

The DigitalFilipino Club had a webinar session discussing the DTI Sales Promotion issues and have presented this proposed position.

DTI Sales Promotion Guidelines: a proposed position on issues

View more presentations from Janette Toral


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Update (November 5, 2011)


As no regulations were successfully issued, currentl regulation still holds. All promotions, with or without purchase required, needs a DTI Sales Promotion Permit.

Contest round-up as of August 8, 2011

Here are some of the ongoing contest I spotted to date. If you have one, buzz me and will add it.

1. Pakyaw Black Bag (weekly - every Tuesday to Friday)
2. Dear Dad, I Want a Smart TV (deadline: August 15)
3. "I Can Change for the Good" Photo Contest (deadline: August 15)
4. "Shake the Grass" Video Contest (deadline: August 15)
5. Follow Chicken Charlie on Facebook and Twitter to win Chicken Charlie Wings (deadline: August 18)
6. I Like Panciteria Lido video contest (deadline: August 26)
7. Love As I See It photo story contest by IslandRose.net (deadline: August 30)
8. Magnolia Chocolait Name the Twins (deadline: August 30)
9. Join the Top 10 Emerging Influential Blogs for 2011 Writing Project (deadline: September 7)
10. Most Liked Household / Barkada Group Picture Photo Contest (deadline: September 30)
11. Get Hired, Get Wired by SysGen (deadline: October 26)

August 4: DTI Briefing on Consumer Act, Sales Promo to Bloggers

The Department of Trade and Industry is organizing a briefing with the blogging community on:

1. The Consumer Act
2. Promo Permit process

This will be on August 4, 2011, Wednesday, 10:30 am, at BOI Penthouse, Board of Investments Building, 385 Sen. Gil Puyat Avenue (corner Paseo De Roxas), Makati City.

This is open to all interested bloggers. You can walk-in at the said briefing. However, it will help also if you can call 9765705 or 8971243 to register.


To fellow bloggers, kindly share the info.


This announcement also at the DTI Website. 

DTI DAO 10-02 series of 2010: Addenda to DAO 2 series of 1993 or the Rules and Regulations Implementing Rep...

Consumers, do you want online contest, raffle, games to have a DTI Sales Promotion Permit?

When I posted about the DTI Policy on Sales Promotion Permits, one suggestion received was to get the point of view of the consumer as well on these promotions happening in various forms online. And I'm glad to finally receive one:

Anonymous said... (August 2, 2011 7:57 am snippet of comment) 

Let's try putting ourselves on the other side. What happens if you join an online contest and you win. The promised prize was an all expensed paid trip to Boracay with a stay in a posh villa or something. When you got your prize and went to Boracay you find out that you will have to pay for your land travel, ferry ride and worst, the posh villa turned out to be a bedbug infested inn. What will you do? Where will you complain?  

Perhaps this is the right time for me to ask consumers on what they think:

Do you want online promotion (raffle, contest, games, discounts, redemption, premium), with or without purchase required, to have a DTI Sales Promotion (or other applicable government agency) Permit? If yes or no, why?

DTI DAO 10-02 series of 2010: Addenda to DAO 2 series of 1993 or the Rules and Regulations Implementing Rep...

August 4: DTI Briefing on the Consumer Act, Promo Permit, with Bloggers

The Department of Trade and Industry is organizing a briefing with the blogging community on:

1. The Consumer Act
2. Promo Permit process

This will be on August 4, 2011, Wednesday, 10:30 am, at BOI Penthouse, Board of Investments Building, 385 Sen. Gil Puyat Avenue (corner Paseo De Roxas), Makati City.

(DTI just change the schedule and got a heads-up now.)

This is open to all interested bloggers. You can walk-in at the said briefing. However, it will help also if you can call 9765705 or 8971243 to register.


To fellow bloggers, kindly share the info.


This announcement also at the DTI Website. 

DTI DAO 10-02 series of 2010: Addenda to DAO 2 series of 1993 or the Rules and Regulations Implementing Rep...

August 4: DTI Briefing on the Consumer Act, Promo Permit, with Bloggers

The Department of Trade and Industry is organizing a briefing with the blogging community on:

1. The Consumer Act
2. Promo Permit process

This will be on August 4, 2011, Wednesday, 10:30 am, at BOI Penthouse, Board of Investments Building, 385 Sen. Gil Puyat Avenue (corner Paseo De Roxas), Makati City.

(This was originally scheduled on August 5. Just got a heads-up that it is now moved to August 4.)

This is open to all interested bloggers. You can walk-in at the said briefing. However, it will help also if you can call 9765705 or 8971243 to register.

Fellow bloggers, kindly help spread the word.

This announcement also at the DTI Website. 

DTI DAO 10-02 series of 2010: Addenda to DAO 2 series of 1993 or the Rules and Regulations Implementing Rep...

3 Data Privacy Complaints sent through direct and intermediary channels on professional contest joiners blacklist

Sent three (3) data privacy complaints through direct and intermediary channels where one is already addressed through employee sanction. Waiting for results from 2 others. This is in connection with the blacklist of professional online contest joiners.

Lessons learned and how can you spot data privacy violations:

1. Revelation of names and contact information. People's names and contact information are private. They should never be misused.
2. The information from #1 belongs to the companies in a business relationship. Employees should not even brag that they are in a possession of a list as they are indirectly violating company's confidentiality of information owned or in possession of.
3. If the information or data belongs from a previous employment, a person should not be in possession of it anymore as that constitutes data theft especially if shared that proves possession of such information.
4. The revelation of a business trade practice of an employer (past or present) should not be disclosed as that violates employee-employer contractual relationship. It also shows that you can't be trusted.
5. Lastly, if you care about the people around you, the values that your company represent (and if your action is "unbecoming" of it), provoking people to commit an illegal action anchoring on your powerful client-supplier relationship is grave abuse of authority.

Policies to note of:

• DTI-DAO 8 requires the protection of personal data in an information and communication system. The leakage of data, such as names and contact information, is a violation of this (Section 6 to 8). 
• It also violates the Consumer Act of the Philippines that has stated application on e-commerce transactions. Section 8 reminds entities of data privacy importance. Furthermore, the definition of e-commerce in our country refers to both commercial and non-commercial transactions.
• Data privacy breaches can be held accountable for violation of the E-Commerce Law (Section 32, 33 c & d).

Companies should note the following to protect itself from these occurrences:

1. Employee contract clearly explaining the meaning of "confidential information". The mere fact we have glitches today only shows that a lot of employees don't understand the gravity of this. 
2. Instill data privacy policies in your organization, implement it, and make it compliant under DTI-DAO 8.
3. Make employees sign a non-disclosure agreement for every project handled and a release document at the end of it fully understanding what can be and can't be disclosed.
4. Have clear sanctions on data privacy violations and be ready to sue if necessary to protect your company's reputation.

I pray that a satisfactory sanction shall be given by these companies involved against their employees who violated online contest joiners data.


I won't be posting names of people and companies involved. Only recording of lessons learned hoping that this will never happen again.

Registry of Online Contest Managers

With the issues surrounding DTI Sales Promotion Permit for online campaigns and efforts made by some to create a blacklist of professional online contest joiners, it is good to know that a lot recognizes the responsibility of a contest organizer to ensure that the rules are tight enough and managed well so it won't be abused by aggressive participants.

Voluntary listing of Online Contest Managers and Contractors

I am thinking that perhaps an online registry can be created, initially on a voluntary-basis, where online contest managers, either in-house or outsourced, are listed. These are the actual people who can be doing the following at the minimum:

1. Involved in crafting contest guidelines.
2. Manage the day-to-day operations and monitoring of the contest to ensure it complies with the mechanics.

A person, in order to be of good standing, can be based on the following:

1. Minimal complaints from contest joiners when a contest goes out of line or the contest manager violate the rules of its own contest. To be in a listing, it will require recommendation from x number of parties. To be removed from the listing, it will require x number of complaints which were found to be true after investigation.
2. Respect for personal data of those who joined online contest. DTI-DAO 8 requires the protection of personal data in an information and communication system. The leakage of data, such as names and contact information of undesirable contest joiners, is a violation of this (Section 6 to 8). It also violates the Consumer Act of the Philippines. Leakage of data reflects poor enforcement of data privacy provision of the companies whose contest they have manage or of the entities they have worked or currently working for. It will be disappointing if these companies won't take any action for such. They can even be held accountable for violation of the E-Commerce Law (Section 32, 33 c & d).

Admittedly, there is no perfect online contest manager. Mistakes get committed and effort is taken to correct them or make sure the lessons get applied to future contest handled. However, I began thinking that somehow this specific segment needs to be looked at more cautiously especially when #2 just happened lately.

Blacklist Professional Online Contest Joiners

Got a call from a prospective client requesting for a proposal to manage an online contest. He had one handling his campaigns in the past. Some went pretty well while some turned a bit messy due to participants gaming the system. Usually this occurs when the winner of a particular contest gets chosen based on the highest number of "like" votes especially if done via Facebook.

However, I was caught by surprise when he mentioned about excluding "professional online contest joiners" referring to a list he got online that includes names, contact number, and other info. Excluding means their entries will be disregarded or be prevented from joining. I am wary of such an idea as it might be perceived as violation of consumer rights. Furthermore, if permits will be secured in a contest, will DTI even tolerate such a thing?

When I asked to cite names of people in the list, it irked me as some I know personally and are very active inviting me lately from coffee brand Facebook application, fan page promotion, to photography contest.

It is the contest organizer's responsibility

I disagree with the idea of tagging people as "professional contest joiners". A good contest guideline or mechanics will ensure looking into scenarios that will avoid the contest from being "game" (such as creating fake accounts to spike up likes).

There are many suggestions to minimize an online contest from being "game" by aggressive participants such as:

1. If participation of usual contest joiners is not encouraged, then add that to the rules citing those who won in the past are excluded from joining to give others a chance. (if it is legally possible to do so).
   
2. Don't have "like" votes as one of the criteria for winning. Do not allow participants to cast a like vote for themselves and/or to other entries.
3. If "likes" included, give minor credit to it. Or only those who are fans of the Page prior to contest launch shall be allowed to vote only. You can also set maximum number of votes allowed in an hour or in a day. 
4. Another way for likes or votes is to have an authentication process. Assuring each person is real and shall cast votes only once.
5. Consistency in name of participant profile online and actual winner.
6. Make your contest tough enough where winners are determined based on creativity rather than by voting. Or require more effort to cast a vote rather than just click a button or two.

If a contest fails or gets controversial due to participants accusing others of "gaming" the system and the likes, the responsibility falls on the shoulders of its contest organizer. One is expected to have think through the contest guideline if it can be abused or manipulated.

It is unfair to pass the blame to participants who only wanted to compete and win. Blacklisting professional online contest joiners is definitely not a solution.

(P.S. I agree with your comment Dexter. Added that as #10 in my politics of blogging post.)

(P.S. After answering all your comments, I thought that perhaps creating a registry of online contest managers is now necessary.)

Do businesses, bloggers, individuals need a DTI permit to run an online contest even if there is no purchase required?

There has always been an assumption that if you run a contest or promotion, online or offline, getting a Department of Trade and Industry Sales Promotion Permit (DTI Permit) is not necessary if purchase of a product or service is not required.

However, Internet and Mobile Marketing Association of the Philippines (IMMAP) board member Michael Palacios recently had a meeting with the DTI (that got additional thoughts from IMMAP members) that implies such as necessary. The organization is currently reviewing the policy to arrive at a position or conclusion to further discuss the matter.

DTI DAO 10-02 series of 2010: Addenda to DAO 2 series of 1993 or the Rules and Regulations Implementing Rep...

Minutes of IMMAP's First Consultative Meeting with the DTI:

"1) Policy is not done with DTI; they implement the Consumer Act of the Philippines
2) The Consumer Act of the Philippines was last updated in 1992.
3) Cong Luis Villafuerte is currently redrafting the Consumer Act.
4) IMMAP offers to disseminate and communicate to our member companies.
5) DTI having difficulty implementing Consumer Act of the Philippines, with respect to group buying sites.
6) DTI cited dynamic pricing (like those of budget airlines) as problematic. Speed in general was a problem.
7) Facebook is a concern. There are problems using Facebook as promo platform.
8) The Consumer Act of the Philippines covers any raffling or contest activity, whether or not there is a sales requirement component.
9) Problem of creating multiple accounts for promos. No one should be able to influence the results of a promo, said DTI.
10) DTI does not allow "likes" as a determinant of a winner, because it can be influenced by artificial likes.
11) Hypothetical Example: A Brand does a "Tell Us Your Amazing Story Using Our Brand" testimonial campaign. Each testimonial is a raffle entry for an iPhone. At no point does it say "Buy Our Brand". DTI recommendation is to get covered by a DTI Permit.
12) DTI covers any raffling activity in the Philippines, including regional activities which happen to cover the Philippines. As long as someone in the Philippines is eligible, it would need a DTI Permit.
13) Back to Facebook, IMMAP asks: is DTI enforcing Facebook guidelines? DTI Response: we require accountability for a promo. Our job is to make sure that a consumer's rights are protected. 
14) DTI: show to us that the consumer is protected. "Show to us in layman's terms and convince that everything is protected. The database, the administrator, your provisions for data protection. Don't tell us that it's Facebook."
15) IMMAP was invited to form a working group with the DTI for training and consultation.
16) IMMAP will sponsor DTI personnel, into its Certified Digital Marketer Program.
17) Online coverage is understood to be a nationwide promo.
18) DTI only has 4 people looking at online promotions.
19) Only 5 group buying/daily deals websites currently secure DTI permits.
20) DTI needs to be sure that the promo operator owns the data.
21) DTI Violations: escalating penalties to client."

This is what Michael Palacios has posted in the IMMAP Group to summarize his observation:

Hi everyone, I know that everyone has questions about whether or not we should get a DTI Permit for our online promos. Well, IMMAP sat down with the DTI and the answer IMHO is pretty much "yes". Here's why: 

The DTI is an enforcement office, and it enforces the Consumer Act of the Philippines, last updated in 1992. I am reposting below the most salient points of this Act:
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"Sales Promotion" means techniques intended for broad consumer participation which contain promises of gain such as prizes, in cash or in kind, as reward for the purchase of a product, security, service or winning in contest, game, tournament and other similar competitions which involve determination of winner/s and which utilize mass media or other widespread media of information. It also means techniques purely intended to increase the sales, patronage and/or goodwill of a product.

Art. 116. Permit to Conduct Promotion. - No person shall conduct any sales campaigns, including beauty contest, national in character, sponsored and promoted by manufacturing enterprises without first securing a permit from the concerned department at least thirty (30) calendar days prior to the commencement thereof. Unless an objection or denial is received within fifteen (15) days from filing of the application, the same shall be deemed approved and the promotion campaign or activity may be conducted: Provided, That any sales promotion campaign using medical prescriptions or any part thereof or attachment thereto for raffles or a promise of reward shall not be allowed, nor a permit be issued thereof.

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I'm no lawyer, but it seems like the definition of Sales Promotion is pretty encompassing, including techniques that promote patronage or goodwill (branding activities).
Of course, we should get a lawyer to make a definitive conclusion, but this is something we can all show our clients.

The DTI has released several guidelines to further clarify the implementation of the Consumer Act of the Philippines. They also released one covering online transactions.

How about bloggers?
My concern though is when bloggers start organizing contest and promotions of their own that intends to promote goodwill (brand building) for their blogs. Do we need to get a DTI Permit too?

One idea suggested by a fellow blogger is for an association to cover us and negotiate with the government to carry out its own permit system. My only challenge with this idea is that it can be questioned if the association or group is new.

Although, I think the easiest way to go about this is for a minimum standard has to be set, for online contest organized by individuals, that would necessitate a DTI permit.

(Update: 7/26/ 2011 Another factor that has to be looked upon is do we get included in an registry of online contest managers or organizers that can also track performance and any complaints received. This includes how personal data of those who join individual-organized contest is handled and not abused.)

Update:
1. RJ David of Sulit.com.ph gave interesting inputs on this topic and he said.

"We run numerous contests in Sulit.com.ph and as of now we use the following questions to guide us if we need a DTI permit or not:
1.) Do participants need to pay something to join? If yes, a DTI permit is required.
2.) Do we need to advertise through TV, print, radio and other forms of mass media outside our current online properties? If yes, a DTI permit is required."

Group buying sites

RJ David also asked the DTI about Group Buying Sites as they are also sales promotions in nature.

DTI Dialogue

If there is anything sure at the moment, the DTI has no clear guidelines on this. But to protect the consumer, especially when you get to read complaints and horror stories, perhaps it is time.

Currently coordinating with DTI on this to seek further clarification.

DTI References:

• Application Form for Sales Promo Permit for Contests
   PDF format (31 kB)
• Application Form for Sales Promo Permit for Discount
   PDF format (22 kB)
• Application Form for Sales Promo Permit for Games
   PDF format (30 kB)
• Application Form for Sales Promo Permit for Premium
   PDF format (30 kB)
• Application Form for Sales Promo Permit for Raffle
   PDF format (32 kB)
• Application Form for Sales Promo Permit for Redemption
   PDF format (25 kB)

Industry Guidelines:

• IMMAP Code of Ethics
• Ad Standards Council (ASC) Code of Ethics
• ASC Manual of Procedures
• Facebook Promotion Guidelines

Contest Round-Up as of July 16

Arrow Home Improvement (#2 and #5) and PhilippineBeaches (#1) extended their contest to attract more entries. Here the ongoing ones I spotted to date. Newest addition to the list is #6.

1. Where's that Beach? FB promo by PhilippineBeaches (deadline: July 18)
2. Gift Certificate Raffle Promo - OTTO Waterless Urinal by Arrow Home Improvement Inc. (deadline: July 19) (this is a #blogentrep student project)
3. Spot that Sulit Ride! Photo Contest (deadline: July 19)
4. Follow Gizmo Therapy on Facebook and Win P1000 GC (deadline: July 22)
5. Waterless is More Blog Contest - OTTO Waterless Urinal by Arrow Home Improvement Inc. (deadline: July 29) (this is a #blogentrep student project)
6. Share Your Retail Experience Online Photo Contest by the Philippine Retailers Association (deadline: July 29) 
7. Bye Bye Bad Photos (deadline: July 31)
8. Samsung Notebook Sexy Street Style Promo (deadline: July 31)
9. Dear Dad, I Want a Smart TV (deadline: August 15)
10. "I Can Change for the Good" Photo Contest (deadline: August 15)
11. "Shake the Grass" Video Contest (deadline: August 15)
12. Follow Chicken Charlie on Facebook and Twitter to win Chicken Charlie Wings (deadline: August 18)
13. I Like Panciteria Lido video contest (deadline: August 26)
14. Love As I See It photo story contest by IslandRose.net (deadline: August 30)
15. Magnolia Chocolait Name the Twins (deadline: August 30)
16. Join the Top 10 Emerging Influential Blogs for 2011 Writing Project (deadline: September 7)
17. Most Liked Household / Barkada Group Picture Photo Contest (deadline: September 30)
18. Get Hired, Get Wired by SysGen (deadline: October 26)