Amended Provisions in Decree 128/2024/ND-CP Regarding the Maximum Limit on the Value of Goods and Services Used for Promotions

Decree 128/2024/ND-CP Revises the Maximum Limit on the Value of Goods and Services Used for Promotions Effective from December 1, 2024

On October 10, 2024, the Government issued Decree 128/2024/ND-CP amending and supplementing certain articles of Decree 81/2018/ND-CP dated May 22, 2018, detailing the Commercial Law on promotional activities. Key highlights include:

1. Revisions to the Maximum Limit on the Value of Goods and Services Used for Promotions:

Material Value Limit for Promotions:
The material value used for promotions on a single unit of goods or services may not exceed 50% of the selling price immediately prior to the promotional period, except in cases of promotions conducted under:

• Clauses 8 and 9, Article 92 of the Commercial Law:

- Organizing cultural, artistic, entertainment, or other events for promotional purposes.
- Other promotional methods approved by the state management authority for commerce.

• Articles 8, 9(2), 12, 13, and 14 of Decree 81/2018/ND-CP:

- Providing free samples or trial services for customers to use.
- Giving away goods or services without requiring a purchase.
- Sales with contest entry opportunities, where winners are selected based on published rules and prizes.
- Promotional programs with random draws linked to purchases, with prizes awarded based on published rules.
Loyalty programs rewarding customers based on the volume or value of goods and services purchased.

Total Promotional Value Limit:
The total value of goods and services used for promotions in a single program must not exceed 50% of the total value of the promoted goods and services, except for cases specified in:

• Clauses 8 and 9, Article 92 of the Commercial Law:

- Organizing cultural, artistic, entertainment, or other events for promotional purposes.
- Other promotional methods approved by the state management authority for commerce.

• Articles 8 and 9(2) of Decree 81/2018/ND-CP:

- Providing product samples or sample services for customers to try free of charge.

- Giving away goods or services free of charge without requiring the purchase of goods or services.

2. Special Cases with 100% Limit:

For centralized promotional programs or promotional activities under trade promotion campaigns approved by the Prime Minister, the maximum limit for the value of promotional goods and services is 100%.

Maximum Discount Rate of 100% for Centralized Promotions:
In centralized promotional programs under Article 6(5) of Decree 81/2018/ND-CP, the maximum discount rate for goods and services is set at 100%. This also applies to promotional activities within trade promotion campaigns approved by the Prime Minister.

This decree takes effect on December 1, 2024.

View the full details of Decree 128/2024/ND-CP here.