Senior discount loophole? Lawyer warns of fake promos

Election lawyer and senior citizens' rights advocate Romulo Macalintal has urged the Supreme Court to clarify its recent ruling on senior citizen discounts, warning that businesses could exploit the decision by labeling regular transactions as promotional offers.

Macalintal said establishments might use the ruling to avoid granting the mandatory 20 percent discount to senior citizens, undermining the law intended to protect elderly consumers.

He stressed that the Supreme Court's decision acquitting Bacolod hotel manager Orville Ong involved a discounted group rate negotiated by an association, rather than an ordinary promotional offer available to the public.

Without clarification, he warned, businesses could falsely classify regular transactions as promotions to deny senior citizens their statutory benefits.

Macalintal argued that restrictions against combining discounts should apply only to legitimate promotional offers authorized by the Department of Trade and Industry (DTI) for a specified period.

He cited Article 116 of Republic Act No. 7394, or the Consumer Act of the Philippines, which governs sales promotion campaigns.

According to Macalintal, establishments offering unauthorized promotions should still be required to grant the 20 percent senior citizen discount.

For legitimate promotions, senior citizens should be allowed to choose between the promotional price and their statutory discount, whichever provides greater savings.

The lawyer also urged the high court to clarify that senior citizens remain entitled to the applicable 12 percent value-added tax exemption on covered hotel services, in addition to the appropriate discount.

Hotel discount dispute

Macalintal's appeal followed the Supreme Court's acquittal of Ong, who had been convicted by lower courts after allegedly refusing to grant two senior citizen guests an additional 20 percent discount.

The guests had booked their accommodations under a group rate negotiated for the Cebu Bikers Club.

In its ruling, the Supreme Court noted that the guests had already received a 20 percent reduction through the negotiated group rate.

The high court held that senior citizen discounts cannot be combined with other discounts, explaining that eligible customers may choose the offer that provides greater savings.

It also emphasized that the law must protect senior citizens without imposing undue burdens on businesses.

Macalintal maintained that the decision needs further clarification to prevent establishments from invoking promotional discounts as a blanket justification for denying statutory benefits.