Legal basis and policy intent
- Article 83 of the Consumer Act of the Philippines requires the concerned department to prescribe rules for the visible placement of price tags for specific consumer products and services.
- Section 1 of R.A. 71, as amended, empowers the Secretary of Commerce and Industry (now Secretary of Trade and Industry) to exempt, upon recommendation of the Director of Commerce (now Director of Bureau of Trade Regulation and Consumer Protection), certain articles of commerce or classes of establishments from provisions of the Act.
- The State policy is to protect the interest of the consumer, promote general welfare, and establish standards of conduct for business and industry.
- The Order encourages adoption of modern electronic technology to meet business demands while ensuring consumers receive accurate information on the price of each consumer product offered for retail sale.
Coverage: where the rules apply
- The rules apply to all consumer products offered for retail sale except those that are too small or whose nature makes it impractical to place an individual price tag/label.
- Products that are too small or impractical for individual tagging must still have a price list or price poster placed at the nearest point where the goods are displayed.
- The price list/poster must indicate the retail price of the articles and the specification of their size, volume, content, diameter, etc.
Price tag/label placement standards
- Price tags must be written clearly.
- Price tags must indicate the price of the consumer product, including VAT and other types of charges, per unit in pesos and centavos.
Establishments allowed shelf pricing
- An establishment may use shelf price if it complies with all of the following requirements:
- It must use an itemized receipt or cash register tape that states the description, size, quantity, and individual price of the consumer goods purchased.
- It must install at least (1) Price Verification Counter or similar electronic system strategically located in the establishment.
- For a multi-storey establishment, at least (1) Price Verification Counter per storey must be installed.
- For effectiveness assessment, the Bureau of Trade Regulation and Consumer Protection (BTRCP) shall conduct a quarterly survey to determine the necessity of installing additional Price Verification Counters for each establishment.
Policy for non-compliant establishments
- Establishments that cannot comply with the shelf pricing requirements must follow either individual price tagging policy or the price list/poster requirement, depending on the applicable case.
Shelf pricing with product codes
- Shelf price may be used when it is combined with product identification codes such that scanning the code will show the price of the item.
Shelf price content, size, layout, and consistency
- Shelf price must be written clearly showing:
- the retail price of the consumer product per unit in pesos and centavos; and
- the brand name, product description, and net quantity of contents, expressed in metric system weight/measure or the numerical count.
- Shelf price tags must be strategically posted beneath or above the shelf where the goods are displayed.
- When goods cover a wide shelf area, a sufficient number of similar price tags must be strategically attached.
- The shelf price displayed must be at least 8 mm high.
- Other labeling information must be at least 4 mm high.
- The number of shelf prices required is determined by the size of the display area of the specific consumer product.
- There must be one (1) shelf price for each brand displayed in every one (1) meter of shelf length; any fraction in excess requires placement of another shelf price of the same type.
- Shelf price tags must be attached to the shelf and properly secured to minimize tampering, misplacing, transfer, or loss.
- Establishments must ensure that the price indicated on the shelf is the same and/or consistent with the price stated in the Price Verification Counter and/or the cash register counter upon payment.
- If there is inconsistency among:
- the price shown on the shelf,
- the price on the product itself, or
- the database price revealed when the item is scanned,
the lowest price shall prevail.
Enforcement, sanctions reference, and governing rules
- Any violation of these rules and regulations must be handled in accordance with the Consumer Act of the Philippines and Executive Order No. 913.
Separability and repealing effect
- If any provision or its application to any person or circumstances is declared invalid, the remaining provisions unaffected continue to be in full force and effect.
- All previous rules and regulations that are inconsistent with this Order are repealed or amended accordingly.