“Buy 1 get 1 free” — the promotion looks irresistible and customers queue up. But behind the counter, the numbers tell a different story: giving away one product for every one sold means the promotional value reaches 100% of the goods’ value, double the legal ceiling. Add a missing registration filing with the Department of Industry and Trade, and the campaign that was supposed to clear inventory ends with a fining decision.
1. The 50% cap on promotional value
Under Decree 81/2018/ND-CP detailing commercial promotion activities, the maximum value of goods or services used for promotion must not exceed 50% of the value of the promoted goods or services (Article 6). A “buy 1 get 1” offer equals 100% — a clear breach of the cap regardless of how the campaign is worded. Common workarounds do not help: splitting the gift across invoices, calling the second item a “gift” rather than a promotion, or running the campaign only online — the cap applies to the economic substance of the promotion.
2. Notification and registration duties
Beyond the cap, promotional programs must go through notification or registration procedures with the provincial Department of Industry and Trade under Decree 81/2018/ND-CP, depending on the promotion type. Many businesses run flash sales on social media or e-commerce platforms assuming small scale means no paperwork — the decree does not share that assumption. Skipping the procedure is an independent violation on top of any cap breach.
3. Penalties and how to fix a breaching campaign
Violations of promotion rules are fined under Decree 98/2020/ND-CP on administrative sanctions in commercial activities, with remedial measures including disgorgement of illegal gains. If a campaign is already running: (1) stop or restructure immediately — for example, convert “buy 1 get 1” into a 50%-off discount on the second item, which stays within the cap; (2) complete the notification/registration filing, even late, to show good faith; (3) keep full campaign records (dates, quantities, values) for the enforcement file.
For future campaigns, build the legal check into the marketing workflow: every promotion design should pass two gates — value within 50% and filing completed before launch. The marketing team should no more launch a promotion without the filing receipt than the finance team would pay an invoice without a contract.
1. Can we call the second item a “gift” to avoid the 50% cap?
No. The 50% cap applies to the economic substance, not the wording. If the customer effectively receives goods worth 100% of what they paid for, it is a 100% promotion whatever it is called — gift, bonus, loyalty reward. Enforcement authorities look at the value ratio, and creative naming is treated as an attempt to evade.
2. Do online-only flash sales escape the promotion rules?
No. Decree 81/2018/ND-CP applies to commercial promotions regardless of channel — physical stores, websites, social media, livestreams and e-commerce platforms are all covered. Online promotions are in fact easier for authorities to evidence because the posts, banners and order records are preserved digitally.
3. Is a promotion worth exactly 50% of the goods’ value allowed?
Yes — the regulation uses “must not exceed 50%”, so a promotion at exactly 50% of the goods’ value complies with the cap (other duties like notification still apply). The breach starts above 50%. When in doubt, design slightly below the line to leave a margin for valuation disputes.
4. We forgot to register the campaign — does filing late fix it?
Late filing does not erase the violation of running an unregistered campaign, but it is a meaningful mitigating factor showing the business did not intend to evade supervision. Complete the filing as soon as the omission is discovered, keep the submission receipt, and present it when working with the enforcement authority. Prevention remains far cheaper than mitigation.
5. Can one campaign be fined for several violations at once?
Yes. Each breach is sanctioned separately: exceeding the value cap, failing to notify/register, and any misleading advertising about the promotion (e.g., inflating the original price to fake a discount) each attract their own penalties under the applicable decrees. A single campaign can therefore generate multiple fining items — another reason to run the two-gate legal check before launch.
This article has been quality-reviewed by the FLAW AI Legal Council
