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The Hungarian Code of Advertising Ethics

Article 14 - Sales promotions

(1)    Rules stipulated in the present article shall be applied, in line with general rules, in case of all advertising (commercial communication, marketing tool) that aim to enhance the marketability of the advertised goods with some added value or special offer (e.g. price reduction, free offer, coupon, present, charity programs).

(2)    In point of sale communication serving as sales promotion, general rules of the Code must be kept with special care.

(3)    In designing and conducting a sales promotion, behaviour that may cause just justifiable disappointment or giving any other grounds for reasonable complaint must be avoided. The from them should be prompt and efficient, the terms and conduct of all sales promotions should be equitable to all participants,  and should be framed in a way which is fair to competitors and other traders in the market. No promoters, intermediaries or others involved should do anything likely to bring sales promotions into disrepute.  

(4)    Advertising of a sales action is ethical if the consumer understands from it the conditions clearly and easily. Special care should be taken to provide that the promise of the gift or advantage may not be exaggerated and/ or the price of the advertised product hidden or uncertain.

(5)    Communication of a sales promotion shall not be misleading, especially not in the matter of its price and linkage to the advertised product.

(6)    With suitable control it must be provided that the designing and conducting of the promotion meet the rational expectations of consumers. Special attention  must be paid to the following:

a.    The promised advantage (gift) shall be available in the quantity matching preliminary expectations and in a rational interval of time. In case of an unavoidable delay the consumer must be informed thereof and measures necessary for amending the situation must be taken promptly.

b.    Defective goods or inadequate services should be replaced or the consumer shall receive due compensation.

(7)    Communication of a sales promotion shall contain all important information likely to affect consumer decision to purchase, especially the following:

a.    important conditions of participation and the availability of the participation policy.

b.    main characteristics of the additional benefits offered

c.    any time limit on taking advantage of the promotional offer (deadline for participation)

d.    any possible restriction to participation (age, geographical limitation, another product or service), or any limitations on stocks. In the case the offer is limited the consumer should be properly informed on possibilities of any arrangements for substituting alternative items or refunding the money

e.    the value of any voucher or stamp offered where a monetary alternative is available

f.    any possible cost of obtaining the item

g.    the full name and contact data of the promoter and an address to which complaints can be directed (if it differs from the promoter)

(8)    In case of a draw, usually in case of selling incentive linked with a winnable prize (obtainable either with knowledge test or a draw) the consumer must be informed on the following, or at least their availability:

a.    detailed rules to participate in prize promotion

b.    any costs associated with participation cost other than from usual (base telephone fee, mail)

c.    nature, value and number of the prizes and the possibility of their substituted to money

d.    in case of a skill contest the nature of questions and the criteria of judgment

e.    the selection procedure for the award of prizes

f.    closing date of the competition

g.    when and how the results will be made available

h.    whether the beneficiary may be liable to pay tax as a result of winning a prize

i.    the time period during which prizes may be collected

j.    where a jury is involved the composition of the jury

k.    any intention to use winners or winning contribution in post-event activities

l.    the exact place and time of the open draw winning procedure, and place should be given to the consumer to take part on it