Ms. Hanh asks whether discounting items that are outdated in consumer preferences is considered a form of promotion.

If the discount on outdated items is not regarded as a form of promotion and does not require a promotional notification, is the maximum allowable discount on these outdated items still limited to 50%?

Regarding this issue, the Ministry of Industry and Trade provides the following opinion:

According to Article 10 of Decree No. 81/2018/ND-CP dated May 22, 2018, the Government stipulates details of the Commercial Law regarding promotional activities. It states that promotions in the form of discounts involve "selling goods or providing services at prices lower than previously established prices, applicable during the announced promotional period."

Therefore, when carrying out promotions in this manner, businesses must comply with the provisions of Article 7 of Decree No. 81/2018/ND-CP concerning the maximum allowable discount for promoted goods and services.

Based on Clause 3, Article 3 of Decree No. 81/2018/ND-CP: "Businesses conducting promotions are responsible for ensuring the quality of the promoted goods and services, as well as the goods and services used for the promotion."

According to current legal regulations, there is no provision stating that discounts can only apply to newly launched products that do not have defects in quality or specifications.

Under the current laws regarding promotions, there is no provision for "Discounting items for sale" as mentioned in Decision No. 149/2001/QD-BTC issued by the Minister of Finance on December 31, 2001, concerning the issuance and announcement of four Vietnamese accounting standards (Phase 1).

Therefore, this is not a form of promotion regulated by the discount limits outlined in Decree No. 81/2018/ND-CP of the Government.