Trade Promotion Compliance
A trade promotion is a promotion that isn’t open to the general public. It can be open to retailers, employees, select trade groups like plumbers, doctors, mechanics, etc. For example, a manufacturer of medical supplies may run a promotion open only to doctors to help incentivize sales. Sometimes, these promotions run parallel to a consumer promotion to help energize a retailer or sales staff.
It is a common misconception that the laws governing trade promotions differ substantially from those open to the public. In fact, they are fundamentally the same. Depending upon the structure, you still have to offer a “free” method of entry (AMOE) if a purchase is required.