Only DTI-approved promos can replace 20% senior discount, says lawyer

MANILA, Philippines—Senior citizens rights advocate and lawyer Romulo Macalintal on Thursday said that the mandatory 20-percent discount for senior citizens could only be waived if an establishment’s promotional price is approved by the Department of Trade and Industry (DTI).

Macalintal stressed this in calling for a clarification of the recent Supreme Court ruling on a case of the hotel manager who was acquitted of violating Republic Act No. 7432, or the Senior Citizens Act.

The high tribunal ruled that the two seniors, who filed the complaint against the hotel manager, were entitled to only one type of discount when availing goods and services.

Article continues after this advertisement

Macalintal noted that the case stemmed from a special rate given to Cebu Bikers Club, a community of riders, where the complainants were members and senior citizens at the same time.

FEATURED STORIES

NEWSINFO

NEWSINFO

NEWSINFO

“Unless further elaborated in the full decision, it should be emphasized that the rule against double discounts applies only if the promotional discount has prior approval from the (DTI) and the promotion is for a specified period only. The prior approval of the DTI is required as a deterrent for establishments to evade the granting of the senior citizen discount,” he said.

The lawyer, who is also an expert on election laws, said that a company cannot invoke the restriction on so-called double discounts and deny the mandated 20-percent discount unless the promotion is approved. 

This is in line with Article 116 of RA 7394, or the Consumer Act, where it states that businesses should first secure a permit from the DTI before implementing promotional prices, he added.

Macalintal also urged the Supreme Court to clarify that a senior citizen is entitled to another 12-percent exemption from value-added tax, which covers hotel services.

The high court has yet to release a copy of the ruling to the public.  /gsg