Putting price tags on items you sell is not just a conscientious effort to help your customers make informed buying decisions. When you put a price tag on your product (or service), you are actually adhering to the Price Tag Law of the Philippines, because yes, there is such a thing.
RA 7394 is also otherwise known as the Consumer Act of the Philippines. Article 81 of the said act requires appropriate tags, labels, or markings that indicate the prices of consumer products sold in retail. With this, it is only appropriate that selling a basic necessity or prime commodity without a price tag is prima facie evidence of profiteering (Section 5 or RA 7581 or the Price Act).
Why the Price Tag Law?
The implementation of the price tag law primarily upholds the consumer’s right to choose the products that they want or need at reasonable prices. It is just right that buyers are allowed the liberty to look for the brand, quality, quantity, and price of products they wish to purchase, especially now that prices have gone up. Without a price tag, a consumer may end up buying an item at a higher price (or at a price that is not within his or her set budget). If a store (whether online or physical store) does not put price tags on its goods, it is, in a way, trying to make more profit from its customers than what is necessary or permissible by law because the customers were not given the opportunity to compare prices with other similar goods.
Are online sellers covered by the Price Tag Law?
Remember the DTI’s online campaign against the “PM sent culture”? According to the DTI, the “PM Sent Culture” is a shady practice of online sellers who send the prices of their products through a private message to prospective buyers who ask how much their products are.
Also, isn’t it a bit irritating to keep seeing PM sent when you ask an online seller how much an item is? Why can’t they just include the price on the photo or caption? What if the seller is not online and unable to reply right away? Ugh.
Is there a penalty for those who still refuse to put price tags?
For both face-to-face and online sellers who do not put price tags on their products, the following penalties shall be handed down:
- First time offenders will be fined not less than P200 but not more than P5,000.
- Prison term of anywhere from one month to six months.
- Business permit and license revocation are reserved for repeat offenders.
If you wish to learn more about the price tag law as well as the proper labeling and packaging of consumer products, visit the website of the Department of Trade and Industry.