Price Tag Laws in the Philippines (provisions)

The provision on price tag under R.A 7394 requires that all consumer sold in retail to the public shall bear on
appropriate price tag label,or marking indicating the price of the article.Such consumer shall not be sold at a
price higher than that stated in the price tag.

The Consumer Act of the Philippines (Republic Act No. 7394) defines a price tag as “any device, written,
printed, affixed or attached to a consumer product or displayed in a consumer repair or service establishment
for the purpose of indicating the retail price per unit or service.” Strict laws apply to the use of price tags;
penalties, which range from a fine to imprisonment and revocation of business permits, are imposed for failing
to comply with them.

Price Tag Requirements

Every retail item offered for sale must have a price tag, label or other clear, unaltered and unambiguous sign
on or close to it, and must state the price of the item per unit (each, litre, pair, dozen, etc.). If the item is subject
to Value Added Tax (VAT) the indicated price must include it. No service charge can be included on the price
tag. Sample or dummy items must also carry a price tag. Price tags on lumber must show the official name of
the wood. Prima facie evidence of profiteering can include the selling of a necessity or prime commodity with
no price tag.

Currency
The displayed price must be in pesos and centavos. The law states that the item’s price must be “in Philippine
currency, except when a law or regulation allows consumer products to be sold in foreign currency such as in
the case of duty-free shops.” Banned practices include showing separate price tags for cash and credit card
sales.

Maximum Price
The price tag must display the maximum selling price. Selling the item at a price higher than that displayed is
unlawful. For a while, following introduction of the price tag law, there were problems with some retailers simply
increasing their prices to cover the charges levied on them by credit card processing agencies. Although this
met the letter of the law, because the highest price payable was shown, it meant it was possible to negotiate a
lower price by paying in cash. Legislators hoped to curb haggling with the act, as they considered it “a waste of
time and energy of both buyer and seller.” In 2006, the Philippines Department of Trade and Industry banned
credit card surcharging.

Penalties
Penalties for noncompliance are significant. A first offence results in a fine of not less than 200 pesos but no
more than 5,000, or by “imprisonment of not less than one (1) month but not more than six (6) months or both,
at the discretion of the court.” A second violation results in the revocation of business permit and license.

Applying For A Business Name in the Philippines

When starting a business in the Philippines, one of the very first things anyone needs to think about is the
business name. After all, having a cool business name distinguishes your business from the rest of the pack.
Other than that, a cool business name usually gives a great first impression to potential customers and lures
them in. Usually out of curiosity, people would check out your business and sample what you have to offer.

So what do we need to apply for a business name? Is there an age requirement? Yes, in the Philippines
anyone who is at least 18 years of age can apply for a business name. Anyone who plans or proposes to do
business in the Philippines should follow the business name law.

In the Philippines the Business Name Law is also known as act Number 3883, as Amended by Act Number
41476 and Republic Act Number 863. Let’s discuss that law first.

The Business Name Law states that any business that’ll be established whether it’s a partnership, a
corporation, or even simply a sole proprietorship (i.e. just one owner) should register their business names with
the Department of Trade and Industry (a.k.a. DTI) before your business starts its operation.

Now the next question is what does the DTI require from us to get a business name? Here’s a list of stuff you
need to prepare. First is your chosen business name. It should be unique and it will be compared with current
registered business names.
A good tip would be to submit at least three business names just in case one gets disapproved you have a
back up business name to get you going. If you want to check it yourself you can go online at DTI’s web site
and check if your chosen business name is already taken.

After your business name is settled you need what is called a business applicant profile registration form at the
nearest DTI branch. You can also download it online to register your business name.

You’ll be required to submit a Tax Identification Number (if you don’t have one you need to get one at the
Bureau of Internal Revenue), your email address, and the Zip Code of your business location.

Once you submit all that when applying for a business name you’ll be given a Transaction Reference Number
form. Take that document to a payment officer and pay for the application for a business name.

Now you get a certificate acknowledging the registration of your business name. Your business name
registration should be renewed after five years.

These are the steps when applying for a business name in the Philippines. There are additional requirements if
you’re putting up a corporation or a franchise. Remember that your business name establishes your identity in
the market and helps lure in customers.