Retailers ask DTI to withhold Price Tag Law implementation

The Philippine Retailers Association (PRA) is asking the Department of Trade and Industry (DTI) to withhold the implementation of Price Tag Law until the implementing rules and regulations are finalized.

The PRA made the appeal following the recent monitoring/raid made by DTI on some retail establishments to check compliance with the DTI order.

The PRA opposes the said DAO arguing that contrary to protecting consumers, the DTI order would actually result in higher prices because retailers would use the card price as the base price instead of giving consumers the right to choose their payment option and avail of discounts for cash purchases.

The card price carries with it the bank charges which are imposed by the credit card companies on retailers.

The interest rate depends on the size and volume of transactions generated by retailers.

Some sectors, whose profit margins permit it, can absorb the bank charges, but there are retailers with really thin margins, who cannot absorb it.

The PRA claims that the DTI order actually penalizes consumers who do not have credit cards to pay for the passed on bank charges.

Consumers, the PRA said, would, in effect, shoulder charges for a privilege that only the middle class and the rich are enjoying which is the privilege of having credit cards.

The PRA further argued that the DTI order runs counter to promoting domestic trade.

Retailers complain that they would now have to explain to each and every customer the advantages and disadvantages of their chosen payment scheme.

At a time when shopping is at its peak, this situation would have a negative impact on their operations.

The PRA argues that Article 81 of the Consumer Act is subject to various interpretations and does not explicitly state that there should only be one price in the price tag.

According to the PRA, with the overly restrictive DAO and the elimination of the dual pricing scheme, the consumer is put at a disadvantage.

The price information, thus, the PRA said, is not put up front and immediate unlike in the previous pricing practice wherein consumers are made aware of how much they would have to pay in cash or with a credit card.

The consumer, the PRA said, now has to negotiate to get a better deal.

The DTI order, the PRA said, defeats one of the objectives contained in the declaration of basic policy of the Consumer Act which is to provide information and education to facilitate sound choice to consumers.

The DTI, the PRA said, should focus its attention on retailers who do not post a price tag or those who are not transparent in their pricing information, or who mislead their customers.