Public Policy and


Existing Laws &
Under the area of competition or anti-trust

also penalizes other frauds 2. otherwise known 1. . 3815 (1930) as the Revised Penal Code. 1947). Act No. 166.Philippines Laws and Regulations as amended. The Revised Penal Code in commerce and industry such as falsely marking gold and silver articles and altering trademarks (Republic Act No. punishes anticompetitive behavior that is criminal in nature.

3. allows the collection of damages arising from unfair competition in agricultural. 386 (1949) otherwise known as the Civil Code of the Philippines. It also allows the collection of damages arising from abuse in the exercise of rights and in the performance of duties (Article 19). commercial. or industrial enterprises or in labor (Article 28).Philippines Laws and Regulations as amended. . Republic Act (RA) No.

4. otherwise known as the Consumer Act of the Philippines.Philippines Laws and Regulations otherwise known as the Price Act. 45. Department of Justice (DOJ) as the Competition Authority. and RA 7394 (1932). designating the 5. RA 7581 (1991). . Executive Order (EO) No. This EO has effectively given the DOJ full jurisdiction over matters pertaining to competition and fair trade practices among corporations operating in the country.

2 Public Policy Issues in Pricing .

Pricing within Channel Levels Price-fixing states that sellers must set prices without talking to competitors. .

Pricing within Channel Levels Predatory Pricing ─ selling below cost with the intention of punishing a competitor or gaining higher long- run profits by putting competitors out of business. .

. Deceptive pricing occurs when a seller states prices or price savings that mislead consumers or are not actually available to consumers.Pricing across Channel Levels Laws also prohibit retail (or resale) price maintenance ─ a manufacturer cannot require dealers to charge a specified retail price for its product.

Pricing across Channel Levels The laws prevents unfair price discrimination by ensuring that sellers offer the same price terms to customers at a given level of trade.If the seller can prove that costs differ when selling to different retailers .If the seller manufactures different qualities of the same product for different retailers . Exception: .

“ Treating customers fairly is an important part of building strong and lasting customer relationships. .

The End .

thanks! Any questions? .


WHAT DO YOU CALL … 1 Setting a high price for a new product to skim maximum revenues layer by layer from the segments willing to pay the high price—the company makes fewer. Market-skimming pricing . but more profitable sales.

such as blades for a razor or film for a camera. TRUE or FALSE? Product bundle pricing is 2 setting a price for products that must be used along with a main product. . False. It’s Captive-product Pricing.

. Prices that buyers carry in their minds and refer to when they look at a given product.3 WHAT DO YOU CALL … It’s Reference Prices.

WHAT DO YOU CALL … 4 Promotional money paid by manufacturers to retailers in return for an agreement to feature the manufacturer's products in some way Allowance .

AT DO YOU CALL … 5 A geographical pricing strategy in which the seller designates some city as a basing point and charges all customers the freight cost from that city to the customer Basing-point pricing .

It is uniform-delivered pricing . False. regardless of their location. TRUE or FALSE? Zone pricing is a geographical 6 pricing strategy in which the company charges the same price plus freight to all customers.

TRUE or FALSE? Freight-absorption pricing is a geographical pricing strategy in which the seller absorbs all or part of the freight charges in order to get the desired business. True. 7 .

It is only temporary. to increase short-run sales. and sometimes even below cost. . TRUE or FALSE? 8 Promotional Pricing is a pricing strategy in which the products are permanently priced below the list price. False.

where the difference in prices is not based on differences in costs Segmented pricing . 9 CALL … WHAT DO YOU Selling a product or service at two or more prices.

WHAT DO YOU CALL … 1 A straight reduction in 0 price during a stated period of Dis cou nt time .

1 Psychological pricing .WHAT DO YOU CALL … A pricing approach that considers the psychology of 1 prices and not simply the economics—the price is used to say something about the product.

1 WHAT IS IT … When a retailer sets artificially 2 high “regular” prices and then announces “sale” prices close to its previous everyday prices. Bogus Reference or Comparison Pricing .