DTI warns online sellers: “PM is NOT the key”

Image via Pixabay
  • “PM is the key” is against the law
  • Article 81 of the  Consumer Act of the Philippines requires a price tag for retail products
  • This does not distinguish between online and physical means of trade

With the continuous rise in popularity of e-commerce or online selling, the phrase “PM is the key”, has become very common nowadays. However, according to the Department of Trade and Industry (DTI), this is against the law of our country.

Image from DTI Sultan Kudarat FB page

 Facebook post by DTI Sultan Kudarat  office read: “HINDI COOL ang PM SENT sa online selling! Gawing smooth ang iyong transaction kaya ilagay na ang presyo ng produktong binebenta mo.

Tandaan! Nakasaad sa RA 7394 o Consumer Act of the Philippines na unlawful ang pagbebenta ng kahit na anong produkto na walang karampatang price tag, label or marking ng presyo ng produkto.”

The Facebook post is talking about Article 81 of RA 7394 , which is also known as Price Tag Requirement.

Image from DTI Sultan Kudarat FB page

In an article published by ABS-CBN News, Ruth Castelo, Trade Undersecretary for Consumer Protection said that the Price Act does not distinguish between online and physical means of trade.

“Hindi puwede ‘yong PM, they’ll send you a private message or text or whatever means. It’s a violation of the Price Act kung walang price tag”, she explained.

Castelo said one of the reasons why online sellers only reveal the prices of their goods is most likely due to the tough competition between online sellers.

Since a lot of people get into online selling, they can easily  change the prices depending on how much their competitor sell the same products.

This is actually true based on an outcome of the research done by Yugatech, “Competitors selling the same items might under-cut each other if their price list is posted publicly.”

Furthermore,  by engaging in a private conversation with the potential customers, the sellers have greater chances of increasing their revenue with each customer.

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