What is the Price Tag Law?

Before everything else, let me just ask this question. Did you know that there is what we call here in the Philippines, The Price Tag Law? You can find it in Republic Act No. 7394, also known as the Consumer Act of the Philippines. Up until recently, I had only been reading about it on Facebook and hearing about it from friends. That is, until a simple trip to a convenience store forced me to invoke it.

Price Tag Law PhilippinesRA 7394 is a very long article which covers all aspects of buying and selling consumer goods. The Price Tag Law can be found in Article 81 which states that products shall NOT be sold at a price higher than stated on the price tag.

Price Tag Law PhilippinesSince it’s a law, there is a penalty for breaking it. First time offenders are subject to a fine of not less than P200 but not more than P5,000.

Price Tag Law PhilippinesPlus, there is a prison term of anywhere from 1 month to 6 months. Repeat offenders will find their business permit and license to operate revoked. It’s not something to be taken lightly.

Price Tag Law PhilippinesEarlier this week, I stopped by a convenience store to buy a small loaf of bread. The price tag was very clear — P46.75. When I brought it to the cashier, she scanned it and P56 appeared on the register. I told her the price tag indicated only P46.75. She said we have to follow the price that appears on the register.

Of course I objected. I told her we have a law against this practice, found in Republic Act 7394. By law, they cannot ask me to pay more than what the price tag states. I told them that if they insist on charging me P56, we were going to have a problem. She told me to wait as she called her superior. Her superior said the same thing. I told them, if this is the way it’s going to be, I will take a photo of the price tag and the price on the cashier and report their establishment to the DTI. They then decided to let me pay the price on the tag. But they still punched in their system price. Then they didn’t give me the receipt. I wanted to go already so I didn’t bother asking for it.

I had posted a brief account of this on my Facebook account and got some interesting responses. Apparently, too many people have experienced this sort of thing. It has become somewhat a usual practice. Most would just pay whatever the register says especially if the price difference isn’t that big. A few would post on Facebook and some of these posts become viral, but surprisingly, a lot of people still do not know that this is against the law.

Someone commented that it’s normal for convenience stores to charge higher than supermarkets. I know that, but the higher price should be reflected on the price tags already. I have been buying from convenience stores for years and this is the first time the register price didn’t match the tag price. Plus, the store I visited was not some small mom and pop operation — it’s a big nationwide chain. They have all the resources and manpower to do it right. There is no excuse.

Sales staff and retail frontliners should be properly briefed on the Price Tag Law. If they knew how serious the implications of Republic Act 7394 is, I doubt they would waste their time and energy trying to justify their “system price” to the customer. Penalties include fines, jail time, and a possible revocation of the business permit — I don’t think anyone would want that for themselves.

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  • Reply Monaliza Valencia July 1, 2018 at 9:41 pm

    Sang store to? 711? Mas mahal talaga sa mga convenience store as experienced. Kaya ako lahat ng dapat bilhin pagnaggogrocery, bilhin na ang kelangan. Kesa bumili sa convenience store, minsan nga mas mura pa sa palengke eh.

    • Reply Rowena Wendy Lei July 1, 2018 at 9:45 pm

      Not 7 11 but also a big chain. Yes I know mas mahal sa convenience store but that does not exempt them from the law. If they want to charge P56 for that small loaf they will have to tag it accordingly.

  • Reply Love Compoc July 2, 2018 at 10:10 am

    Na experience namin eto but di namin nabalikan kaya lesson sa amin always magcheck sa counter. Thanks for sharing po mas marami pako natutunan about dito.

  • Reply Mellanie sales July 2, 2018 at 3:32 pm

    Thank.you po mam rowena for the info dami ko natutunan..ano po penalty or punishment sa lalabag s price tag law?

    • Reply Rowena Wendy Lim July 2, 2018 at 3:34 pm

      Merong fine at imprisonment for 1st time offenders. Pag repeat offender fine, imprisonment, and revocation of business license.

  • Reply BiAnne July 6, 2018 at 6:35 am

    Sna mabigyang pansin yan price tag law sa susunod mgrereklamo na din ako tignan ko kung anu paliwanag nila. Minsan kasi pa piso-piso o kya centavos lang pero pg pingsama-sam un malaki din ung mkukuha nila.

  • Reply Amanda at Filipinow.com July 6, 2018 at 8:42 pm

    Oh wow I didn’t have any idea about this! Thanks for sharing Miss Rowena.

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  • Reply she April 6, 2022 at 12:22 pm

    this also happen to me, i was buying a pair of shoes with the price tag of 2300, when i went to cashier for payment she told me that the price is 2900, i remember reading this article and i informed them if they are aware of this law then they call the manager and finally give it as per the price tag, the funny part is they say my credit card wont push through (good standing platinum card)as if they are doing their best for me to not able to pay the shoes. luckily i have my debit card and i told them that theres no way it will not work. Then i got the shoes for ny kid.

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