Seniors may get double discounts, DTI rules

MANILA, Philippines–The 20-percent discount granted by law to senior citizens is “over and above” rebates offered and sold by an establishment to their clients under its paid-for membership or privilege cards, according to a letter-opinion issued by the Department of Trade and Industry (DTI).

The opinion was issued Oct. 15 by Gerald Calderon, officer in charge of the DTI consumer and trade policy division, to the lawyers of Sofitel Hotel, Ponce Enrile Reyes & Manalastas Law Offices, following a case filed in a Pasay City court by Romulo Macalintal, an election law expert.

Macalintal charged Sofitel with refusing to grant him a 20-percent discount as a senior citizen under Republic Act No. 9994, in addition to the 50-percent markdown already granted him as a member of Sofitel’s Accor Advantage where a member, like Macalintal, paid an annual membership fee of P8,800.

If the 20-percent discount was already covered by the 50-percent Accor rebate, Macalintal argued, then what he only received from Accor was a 30-percent discount and it was practically Accor enjoyed his 20-percent senior citizen’s discount.

Sofitel’s lawyers said that extending both discounts to Macalintal would violate the law prohibiting “double discounts.”

The case was later amicably settled. Part of the settlement agreement was that both parties would seek the opinion of the DTI on the issue. On Aug. 15, Sofitel’s law firm, with Macalintal’s concurrence, wrote the DTI.

In its opinion, the DTI clarified that “the prohibition on double discounting is applicable only when the giving of discount is for the establishment’s promotion [and that] normally, a DTI permit is applied and secured before an establishment can proceed with its promotional scheme.”

“We make no definitive opinion that the selling of a privilege card for valuable consideration is or is not for the intention of promoting the establishment. It may be a contract of sale entered into between the merchant and the buyer. On that regard, the prohibition on double discounting may not be applicable and the senior citizen can avail of the 20-percent discount granted by RA 9994 over and above the offered discount extended by the establishment,” Calderon said.

According to Macalintal, since his Accor card was not a promotion approved or permitted by the DTI, then the double discount provision did not apply.

“This DTI opinion should now serve as a wake-up call, if not a warning, to hotels and eateries with paid-for privilege cards, not approved by the DTI that even with the discount under such cards the senior citizen is still entitled to his 20-percent senior discount,” he said in a statement.

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