New guidelines issued for promotional offers

MUSCAT, oct 24 - The Ministry of Commerce‎, Industry and Investment Promotion has issued Ministerial Decree 184/2020 amending certain provisions of the rules for organising promotional offers on the basis of Commercial Registry Law 3/74 and the Trade Law issued vide Royal Decree 55 / 90, and related rules issued under its decision 239/2013. Article 1 of the ministerial decision has allowed commercial centres to hold group promotional exhibitions for the stores located there, for a period of three days and once in a year. The decision is being published in the Official Gazette and will come into effect from the next day from the date of its publication, which is tomorrow Monday.

The Ministry of Commerce, Industry and Investment Promotion started receiving applications for promotional offers and discounts. It is based on the approval of the Supreme Committee in charge of finding mechanisms for dealing with developments emanating from the spread of the Coronavirus (COVID-19). These promotional offers were stopped as part of the measures taken to avoid the spread of COVID-19.

It is worth mentioning that the rule of promotional offers issued under the Ministerial Decision 239/2013 is meant for all types of promotional offers given by commercial, industrial and services establishments, except those related events held by fast-food restaurants throughout the year and commercial centres offers and the gifts given along with commodities as part of a package. This is if advertisements and posters of these offers are approved by the ministry before starting them. The promotional offers at commercial centres on the occasion of festivals, or those held by commercial, industrial and service establishments on the occasion of the opening of a new branch for a period of one day are exempted from these rules on the condition that the ministry approves them.

The ministry has said that it is not allowed for commercial, industrial and service establishments to hold or advertise any promotional offers without obtaining the necessary permit from the ministry. The application for obtaining a permit or a licence to hold a promotional offer must be submitted at least 15 days before starting of the offer. The application should clearly mention its type, method, periods and places. A list of the number, types of prizes, their winners, gifts, location, date of draw, lot or automatic draw, invoices of purchase should also be attached with the application.

The licensee must also commit in a promotional offer that the commodity should have the validity period suitable for use, the price of the commodity or service should not exceed more than its original price and all the raffle coupons should be collected in the box specially designated for this purpose.

These rules also prohibit holding of promotional shows and offers for tobacco, its products or its derivatives, directly or indirectly. The Ministry can bar anyone who violates the provisions of these regulations from conducting promotional offers for a year, starting from the date the violation is proven.

The violator has the right to appeal against the decision to the Minister of Commerce, Industry and Investment Promotion within 60 days from the date on which he was given notice of the violation, and the grievance must be decided within 30 days from the date of the application, and failure to decide during this period shall be deemed a rejection of the grievance.

The Ministry also issued decision No 185/2020 amending some provisions of the rules for sales at reduced prices, based on the Commercial Registry Law 3/74, and the Commercial Law under the Royal Decree No 55/90, and to the regulation for selling at reduced prices issued by decision No 129/2015.

Article 1 allowed commercial establishment management to submit application for the permit or licence with the aim of establishing collective discounts in the shops located in it, for a period of three days and only once.

It also makes it clear that the rebate should not be more than 30 per cent and the decision will be published in the Official Gazette. These rules will come into effect from tomorrow, Monday.