Consumers, take note! October is Consumer Welfare Month!

Join us this October as we celebrate Consumer Welfare Month with the theme
"Sustainable Consumerism in the Digital Age."

Pursuant to Section 28 of Republic Act No. 11904 or the Philippine Creative Industries
Development Act (PCIDA), which lapsed into law on July 28, 2022, the Department of
Trade and Industry (DTI) is mandated to promulgate the law’s Implementing Rules and
Regulations (IRR), in consultation with all relevant stakeholders.
To involve the public in the formulation of the IRR, the DTI is organizing two (2) public
consultations on 4 and 5 of October at 2:00 PM. These consultations will solicit
comments and suggestions on the provisions of the IRR from creative industries
stakeholders.

PH Further Strengthens Ties With US Businesses

As part of President Ferdinand R. Marcos Jr.’s visit to the United States to address the
77th Session of the United Nations General Assembly, the Department of Trade and
Industry (DTI), through its Trade and Investment Centers in New York and Washington,
DC, and the Board of Investments organized a series of business meetings for the
President.
Focusing on the Philippine priority industry clusters—Industrial, Manufacturing, and
Transport cluster; and Technology, Media, and Telecommunication cluster, the
President held roundtable and one-on-one meetings with US companies with a major
presence in the Philippines and/or with future expansion plans in the country.
On 22 and 23 September, President Marcos, together with DTI Secretary Alfredo E.
Pascual and the rest of the PH economic managers, conferred with the top executives
in the sectors of IT-Business Process Management, Digital Infrastructure,
Manufacturing, Logistics, and Wearables. Highlighting the strong and enduring ties
between the Philippines and the United States, the President emphasized his
administration’s strategy to partner with the private sector for the country’s
industrialization and economic transformation.
He thanked US-based global companies that have made the Philippines their home for
a long time now. Among these companies are Texas Instruments, MOOG, FedEx,
Concentrix (which acquired Convergys), JP Morgan Global Service Center, and IBM.
He invited them to be Government’s partners in the country’s economic growth.
The identified areas of partnership include improving the business climate, building the
necessary physical infrastructure, and upskilling the workforce. The US companies cited
the Philippines’ young, trainable human resources as a primary value proposition for the
country in attracting foreign investment. DTI Secretary Alfredo E. Pascual pointed out
that the workforce constitutes the country’s suprastructure.

President Marcos also underscored the recent strategic policy reforms and economic
liberalization laws that will make it easier for foreign investors to do business in the
country.
The US-led Indo-Pacific Economic Framework (IPEF), in which the Philippines is
participating, was cited as another platform by which US and Philippine business
relations may be strengthened. President Marcos encouraged the US companies to
look at the Philippines equally as a valuable contributor to their global business growth
and as a partner in rebuilding the economies of both the PH and the US. According to
the President, building on the present political momentum, we must act early and
quickly to make investments and new jobs happen in the Philippines. ♦
Date of Release: 27 September 2022

ICYMI: Trade Secretary Alfredo Pascual discussed the Philippine government's

strategic economic priorities and its efforts to attract foreign investors to accelerate
economic development during his keynote address at the Philippine Economic Briefing
last 22 September 2022 in New York, USA.
Together with the Trade Secretary are the country's economic officials, who also
provided updates on the Philippines' economic performance, investment opportunities,
and the administration's socioeconomic agenda.

Konsyumers! Remember that electronic product labels must contain the following:
1. Name and address of the manufacturer, importer, and distributor
2. Product and Brand Name
3. English or Filipino translation
4. PS or ICC Mark
Trade Secretary Alfredo Pascual joined the ASEAN Economic Ministers and Senior
Officials during the 54th ASEAN Economic Ministers (AEM) Meeting and Related
Meetings held on 11-18 September 2022 in Siem Reap, Cambodia.
The AEM Meeting was chaired by Cambodia under the theme “ASEAN A.C.T.:
Addressing Challenges Together” and reaffirmed ASEAN’s unwavering commitment to
regional economic integration amidst continued pandemic-related challenges and rising
geopolitical tensions.

The Department of Trade and Industry issued Department Administrative Order (DAO)
No. 16-03 or the “Implementing Rules and Regulations of Republic Act No. 10909, “An
Act Prohibiting Business Establishments from giving Insufficient or No Change to
Consumers and Providing Penalties Therefor” last December 21, 2016.

The DAO is aimed at protecting the consumers against deceptive, unfair and
unconscionable sales acts and practices, among other things.

Business establishments are prohibited from shortchanging a consumer, even if such

change is only a small amount. Also, they are to give only change in the present
currency. It shall also be prohibited to ask consumers for permission to be exempted
from the rule because of unavailability of small bills or coins. Penalties range from Php
500.00 to Php 25,000.00.
 Discounts on Basic Commodities
July 27, 2009

JOINT DTI-DA ADMINISTRATIVE ORDER NO. 02 Series of 2008

SUBJECT: Implementing Rules and Regulations on the Grant of Discounts to Persons with
Disability on the Purchase of Necessities and Prime commodities pursuant to Section 32 (j) of
R.A. No. 9442, otherwise known as the Magna Carta for Disabled Persons and Other Purposes

Section 1. Scope and Coverage – This Order shall apply to persons with disability who are
Filipino citizens, and retailers as defined under Section 2 (c) hereof.

Section 2. Definition of Terms – For purposes of this Order, these terms as defined as follows:
(a) “Basic necessities” – refers to rice, corn, bread, fresh, dried and canned fish and other
marine products, fresh pork, beef and poultry meat, fresh eggs, fresh and processed milk, infant
formulas, fresh vegetables, root crops, coffee, sugar, cooking oil, salt, laundry soap, detergents,
firewood, charcoal, candles and other commodities as maybe classified by the DTI and the DA.

(b) “Prime Commodities” – refers to fresh fruits, dried, processed and canned pork, beef and
poultry, meat, dairy products not falling under basic necessities, noodles, onions, garlic, diapers,
herbicides, poultry, swine and cattle feeds, veterinary products for poultry, swine and cattle
feeds, veterinary products for poultry, swine and cattle, paper, school supplies, nipa shingle,
plyboard, construction nails, batteries, electrical supplies, light bulbs, steel wire and other
commodities that may be classified by the Department of Trade and Industry (DTI) and the
Department of Agriculture (DA).

(c) “Retailer” shall mean any natural or judicial person engaged in the business of selling
consumer products directly to consumers, which shall include among others, supermarkets,
grocery stores, convenience and mini-convenience stores and shops, excluding sari-sari stores
with a capitalization of less than One Hundred Thousand Pesos (Php100,000), public and
private wet markets, “talipapa” and cooperative stores;

(d) “Persons with Disability” shall refer to any person suffering from restriction or different
abilities, as a result of mental, physical or sensory impairment, to perform an activity in a
manner or within the range considered normal for human being. Disability shall mean (1) a
physical or mental impairment that substantially limits one or more psychological or anatomical
function of an individual or activities of such individual; (2) a record of such impairment; or (3)
being regarded as having such impairment.

Section 3. Discount – Every person with disability shall enjoy a special discount of five percent
(5%) of the regular retail price of basic necessities and prime commodities listed under Section
2 (a) and (b) of this Order. The total amount of said purchase shall not exceed the amount of
One thousand Three Hundred Pesos (Php1,300.00) per calendar week without carry over of the
unused amount. Provided, that said amount shall be spent on items listed under Section 2 (a)
and (b) of this Order commensurate to his/her personal and exclusive consumption and/or
enjoyment within the calendar week.

Section 4. Valid Identification Documents – To avail of the discount, a person with disability
must present his/her identification card issued by the National Council on Disability Affairs
(NCDA) or by the authorized office of Local Government Units (LGUs) where he/she resides.
The procedure for the issuance of identification cards shall be in accordance with NCDA
Administrative Order No. 001, Series of 2008, issued 23 April 2008, and other relevant
issuances.

In the event that the retailer has reasonable doubt as to the identity of a person with disability
availing of such special discount, the retailer may request the former to present any other
government identification document, whether nationally or locally issued.

Section 5. Purchase Booklet – A purchase booklet shall be presented to the retailer every time a
purchase of basic necessities and prime commodities is made. The purchase booklet shall
conform to the attached template (Annex “A”) jointly prescribed by DTI and DA. The LGUs shall
procure and distribute the purchase booklets to the persons with disability residing within their
respective territorial jurisdiction.

The purchase booklet shall contain the name of the person with disability, the list of basic
necessities and prime commodities under Section 2 (a) and (b) of this Order. In addition, it shall
also provide columns for the name of retail establishment and its address, date of purchase and
the amount spent for the purchase thereof.

Section 6. Special Lane – Retailers shall provide a special express lane for persons with
disability; in the absence thereof, priority shall be given to them.
Section 7. Prohibition of Availment of Double Discounts – The privilege herein granted shall not
be claimed if the person with disability claims a higher discount as may be granted by the retail
establishment and/or under other existing laws or in combination with other discount programs
such as those extended to senior citizens.

Section 8. Authorized Representative – A person with disability who cannot personally purchase
basic necessities and prime commodities under Section 2 (a) and (b) of this Order may, by
written authority, appoint a representative to transact with the retailer on his/her behalf. The
authorized representative shall be required to present a valid government issued identification
document together with the LGU-issued identification document of the concerned person with
disability and an authorization letter.

However, for those who can impossibly purchase basic necessities and prime commodities
under Section 2 (a) and (b) of this Order because of his/her disability, the permanent
representative/s within the immediate family or the legal guardian, as the case maybe, shall
automatically be considered even without the aforesaid written authorization; Provided that the
name of the authorized person/s shall be indicated in the purchase booklet or in the
identification card that will be issued to the person with disability.

Section 9. Penal and Administrative Sanctions – Penal and administrative sanctions are those
which are provided under R.A. No. 9442.

Section 10. Effectivity – This Order shall take effect fifteen (15) days after its publication in a
national newspaper of general circulation.

Issued this 15th day of December 200 in Makati City, Philippines.

Signed:

PETER B. FAVILA
Secretary, DTI

ARTHUR C. YAP
Secretary, DA
Price – is the amount that consumers will be willing to pay for a product.
e-Presyo – is the Online Price Monitoring System (OPMS) of the DTI where consumers
can check the prevailing prices of basic necessities and prime commodities that are
being monitored by the DTI. It serves as a price guide for consumers in doing their
grocery shopping which in turn ensures “value for money.”

Suggested Retail Price

- The Suggested Retail Price (SRP) is the price at which a distributor sells a
product to his/her customer.
- It is important to determine what the fair SRP is. If it is set too low, the product will
disappear from the market. If it is set too high, the price will go up to levels that
would be detrimental to consumers.

A price floor is the lowest legal price that can be paid in a market for goods and services, labor,
or financial capital. Perhaps the best-known example of a price floor is the minimum wage,
which is based on the normative view that someone working full time ought to be able to afford
a basic standard of living.
A price ceiling is a government- or group-imposed price control, or limit, on how high a price is
charged for a product, commodity, or service. Governments use price ceilings ostensibly to protect
consumers from conditions that could make commodities prohibitively expensive.

Price controls are government regulations on wages or prices or their rates of change.
Governments can impose such regulations on a broad range of goods and services or, more
commonly, on a market for a single good.
Republic Act No. 7581 or the Price Act of 1992, gives the DTI to set price ceilings for basic
goods via a table of suggested retail prices (SRPs) prescribing to retailers a maximum selling
price for individual products frequently purchased by ordinary consumers. It can also cap prices
during emergencies.
An entrepreneur is a person who starts a new business and usually risks his own money to
start the venture. Examples of well-known entrepreneurs include Bill Gates, Steve Jobs, Mark
Zuckerberg, Pierre Omidyar, Arianna Huffington and Caterina Fake. The two main functions
of entrepreneurs are first, taking the risk of developing new products or services and, second,
successfully bringing new products and services into the marketplace.
ADVERTISEMENT
Bandwagon advertising – is a marketing approach that plays up people's fear of
missing out or desire to belong to the in-group. As an advertising technique (or,
depending on the practitioner, as a type of propaganda), it relies heavily on an
emotional appeal to convince people to buy a product or service.
Testimonial advertising – putting your customers' words on display in your marketing
campaigns is known as testimonial ads. As we mentioned, customers trust their peers'
words over those of a brand, so it's time for you to use those words to your advantage.
Testimonial ads feel more honest and authentic to shoppers than strategic brand copy.
Brand advertising – is a form of advertising which helps establish connections and
build strong, long-term relationships with consumers over time. Companies that use
brand advertising aim to get long-term positive recognition.

Senior Citizen Discount

What is the Senior Citizen Discount in the Philippines? Under R.A. 9994, elderly
Filipinos aged 60 and above are entitled to a 20% discount and are exempted from the
value-added tax (VAT) on applicable goods and services for their exclusive use. These
privileges apply to both cash and credit card payments.
Solo Parent Discount
Solo parents earning less than ₱250,000 are entitled to a 10% discount and exemption
from value-added tax on baby's milk, diapers, vaccines, and medicine until the child is
six years old. Senior citizens or persons with disability acting as solo parents can also
avail of the discounts on top of their personal benefits.

Article 81 of the Republic Act No. 7394 or the Consumer Act of the Philippines which 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; and with.

Act No. 3740

- AN ACT TO PENALIZE FRAUDULENT ADVERTISING, MISLABELING OR
MISBRANDING OF ANY PRODUCT, STOCKS, BONDS, ETC.

Generics Act of 1988

- (Republic Act No. 6675). An Act to Promote, Require and Ensure the
Production of an Adequate Supply, Distribution, Use and Acceptance of
Drugs and Medicines Identified by their Generic Names. In the promotion of
the generic names for pharmaceutical products, special consideration shall be
given to drugs and medicines which are included in the Essential Drug List to be
prepared within 180 days from approval of this Act by the Department of Health
conditions obtaining in the Philippines as well as in the internationally accepted
criteria. In particular: a) all medical and veterinary practitioners, including private
practitioners, shall write prescriptions using generic name; b) any organization or
company involved in the manufacture, import, repackaging, marketing and/or
distribution of drugs and medicine shall indicate the generic name of the product
labels; c) drugstores, pharmacies and related stores shall inform any buyer about
all other generic drugs. Offences and penalties for illegal activities are appended
to the text.

In economics, inflation is a general increase in the prices of goods and services in an

economy. When the general price level rises, each unit of currency buys fewer goods
and services; consequently, inflation corresponds to a reduction in the purchasing
power of money.
Demand-Pull Effect
Demand-pull inflation occurs when an increase in the supply of money and credit
stimulates the overall demand for goods and services to increase more rapidly than the
economy's production capacity. This increases demand and leads to price rises.
Cost-Push Effect
Cost-push inflation is a result of the increase in prices working through the production
process inputs. When additions to the supply of money and credit are channeled into a
commodity or other asset markets, costs for all kinds of intermediate goods rise. This is
especially evident when there's a negative economic shock to the supply of key
commodities.

The Consumer Price Index (CPI)

The CPI is a measure that examines the weighted average of prices of a basket of
goods and services which are of primary consumer needs. They include transportation,
food, and medical care.

CPI is calculated by taking price changes for each item in the predetermined basket of
goods and averaging them based on their relative weight in the whole basket. The
prices in consideration are the retail prices of each item, as available for purchase by
the individual citizens.