NLCB: Watch those promotions

Companies need to be more diligent in organising their promotions so as not to incur the wrath of  consumers, Devant Maharaj, Public Relations Officer and Marketing Manager at the National Lotteries Control Board (NLCB), said. A big concern for the NLCB, said Maharaj, is the number of promotions that come out during peak times, jamming supermarkets with entry boxes and promotional paraphernalia. Some big promotions so far include the Coca Cola “Uncap Your Child’s Real Potential” which offer a  grand prize in Roytrin units and Dell computers, Johnson and Johnson “Jolly Beach Resort” promotion, the Toyota “ Vacation for Two” promotion and the Crix “Draw Culture” promotion. But entering these promotions, can be a hassle for consumers, said Maharaj. “To get to one entry box, you have to step over ten others,” he said. The NLCB gets flooded with calls from disgruntled customers concerning inconsistencies with promotions. “Things like collection dates and giveaways are sources of concern for customers. We get complaints that companies say they are picking up entries on a Friday and the pick it up on the Thursday instead. They advertise a grand prize and then give away something else or nobody wins the grand prize,” said Maharaj.

He said companies need to be more vigilant in the way they execute their promotions, since most consumers take them very seriously. But Feisal Muradali, Regional Marketing Manager for Coca-Cola, defended his company’s promotions. Muradali said the company’s intention is to involve their customers in the profile of the brand. For example, Coca-Cola has been running a programme called Every Woman on 90.5FM and 104FM, in an attempt to reach what Muradali calls the “gatekeepers” or the moms within homes. Also Coca-Cola recently launched a savings card called the Coca-Cola Crew Card to reach its core market of teenagers and young adults. He said promotions like these are intended to reward consumers for consistently choosing their brand and also as a means of creating excitement about the product. All promotions need to be approved by the NLCB, which means, once customers see “NLCB” stamped on promotional material, they automatically go to the Board with queries and complaints, said Maharaj. Promotions became a regulated sector in 1997, when the NLCB gambling act was amended. Maharaj said this amendment became a necessity to stop some companies from carrying out promotions that were similar to the NLCB lotteries, like scratch card promotions. This made it difficult for consumers to spot a real NLCB lottery game as opposed to a knock off seven years ago, said Maharaj. It therefore became illegal to carry out promotions without NLCB approval, after 1997.

The penalty for illegal promotions under Act Number One of 1997, chapter 11, section 19, is TT$100,000 or two years imprisonment. While Maharaj said no company has ever been penalised since the induction of the Act, companies offering false promises or inaccurate information, often run the risk of frustrating and angering their valued consumers. “The act is not meant to be punitive. We will not beat anyone with a big stick or go out of our way to be anti-business. It was merely designed to prevent lottery like promotions,” said Maharaj. NLCB gives approval to an average of ten promotions per day, which adds up to over 3000 promotions running in any given year, during peak seasons like Carnival, Easter, Christmas and summer vacation. Now, applications are also available online at the NLCB web site for companies seeking approval.