The Department of Trade and Industry (DTI) on Wednesday reminded business owners and establishments to disclose prices in compliance with fair trade laws.
The DTI Consumer Protection Group (DTI-CPG) urges online and physical store owners to comply with the provisions under Republic Act 7394 or the Consumer Act of the Philippines and the Republic Act 7581 or the Price Act.
Article 81 of RA 7394 or the Consumer Act of the Philippines requires appropriate tags, labels, or markings that indicate the prices of consumer products sold in retail. With these, products must not be sold at higher prices than stated.
Meanwhile, Section 5 of RA 7581 or the Price Act stipulates that selling a basic necessity or prime commodities without a price tag is prima facie evidence of profiteering.
To strengthen the implementation of the Price Act and Consumer Act, the DTI along with concerned government agencies such as the Department of Agriculture (DAR), Department of Health (DOH), Department of Environment and Natural Resources (DENR), Intellectual Property Office (IPO), and National Privacy Commission (NPC) have recently issued the Joint Administrative Order (JAO) No. 22-01, consolidating all existing rules and guidelines on online businesses.
The provisions of JAO No. 22-01 reiterate laws that apply to the establishments’ responsibility to comply with the requirements of price tags on products and services of physical and online stores.
“We are firm in enforcing these laws, especially on the requirement of price tags to ensure consumers’ right to choose quality products at reasonable prices,” said DTI-CPG Undersecretary Ruth B. Castelo.
Several months ago, DTI launched an online campaign against the “PM Sent [Private Message] culture.”
The “PM Sent culture” is the suspicious practice of online sellers who send private messages to consumers inquiring on the price of a product.
The campaign emphasizes that online vendors who conceal prices as a marketing strategy can be fined and/or imprisoned, according to Article 95 of RA7394 or Consumer Act.
The fine ranges from P200 to P5,000 while imprisonment can last from one month to six months.
On April 21, the DTI issued a show-cause order to one of the three supermarkets it inspected in Makati City as some products it sold did not bear any price tag as mandated by RA No. 7394 or the Consumer Act of the Philippines.
