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Code of EthicsCode of Ethics » Price Advertising

Price Advertising

ARTICLE IX
PRICE ADVERTISING

Section 1. GENERAL PROVISIONS

a. All price comparisons should conform to Rule IV (Price Advertising), Chapter VI, Title III of the Department of Trade and Industry’s D.A.O. No. 2, s. 1993.

b. Advertisements should not contain misleading, exaggerated or fictitious price comparisons, discounts or other claimed savings. All indicated prices and other economic terms should be complete and accurate and should not mislead the public by distortion, omission or undue emphasis.

c. Price and purchase terms, when used, should be clear and complete. When parts or accessories that the consumer might reasonably suppose to be part of the original sale are available only at an extra cost or for further consideration, such should be clearly indicated.

d. A permanent price reduction or price rollback may be used in advertisements only for a period of one (1) year from the time the reduction or price rollback has been introduced in the market. However, there is no time frame for the mere mention of a product price as long as there is no reference to a previous price or a price reduction.

Section 2. DISCOUNT OR SPECIAL PRICE

a. Advertisements relating to a discount price shall not be allowed unless the discounted price is compared to the previous price and the discount price is maintained throughout the promotional period advertised.

b. Promotions for discounts and special sales must comply with applicable government regulations (e.g. Department of Trade and Industry (DTI), DOH-FDA, NTC, CAB) rules and regulations and the terms and conditions of the promotion approved by the government regulatory agency.

c. Advertisements for special sales should conform with applicable government regulations. In any case, such advertisements should contain no false or misleading price or savings claims and should specify which store, branch, department and lines of goods are covered by the sale.

d. Where special prices, promotions, discount, sales and the like are applicable only in specific geographical areas, stores or outlets, such information or qualification should be contained clearly and prominently presented in the advertising material.

Section 3. INSTALLMENTS, LEASE-PURCHASE ETC.

a. Offers for sale on installments, lease-purchase arrangements, or other similar pricing mechanism must be clearly presented and must show the complete terms and conditions of the offer. The total consideration that is to be paid by the public, including any charges or extra fees, if any.

b. Advertisements for installment sales, lease-purchase and other similar transactions (including those where the consideration for the product or service is to be paid over a period of time) which makes any reference to prices or terms should likewise provide all pertinent information on terms of payment, additional charges, if any, and all other economic of financial features of the transaction so as to reflect the total cost/consideration for the goods or services being advertised

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