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7.—(1) This regulation applies to any person who carries on for gain a business other than a fund-raising business but, in the course of that business, engages in any promotional venture in the course of which it is represented that charitable contributions are to be applied for charitable, benevolent or philanthropic purposes of any description (rather than for the benefit of one or more particular charitable institutions).
(2) Where any person to whom this regulation applies makes a representation to the effect that charitable contributions are to be applied for such charitable, benevolent or philanthropic purposes as are mentioned in paragraph (1) above he shall, unless he has a reasonable excuse, ensure that the representation is accompanied by a statement clearly indicating—
(a)the fact that the charitable contributions referred to in the representation are to be applied for those purposes and not for the benefit of any particular charitable institution or institutions;
(b)(in general terms) the method by which it is to be determined—
(i)what proportion of the consideration given for goods or services sold or supplied by him, or of any other proceeds of a promotional venture undertaken by him, is to be applied for those purposes, or
(ii)what sums by way of donations by him in connection with the sale or supply of any such goods or services are to be so applied,
as the case may require; and
(c)the method by which it is to be determined how the charitable contributions referred to in the representation are to be distributed between different charitable institutions.
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