DTI urges e-commerce platforms to adopt online discount guidelines for senior citizens and persons with disabilities

By DTI-CPG-Consumer Policy and Advocacy Bureau
June 8, 2022

MAKATI CITY – Following the release of the Joint Memorandum Circular (JMC) No. 01, series of 2022, entitled “Guidelines on the Provision of the Mandatory Statutory Benefits and Privileges of the Senior Citizens and Persons with Disabilities on their Purchases through Online (e-commerce) and Phone Call/SMS”, the Department of Trade and Industry (DTI) urges e-commerce platforms to honor the privileges granted to Senior Citizens and Persons with Disabilities (PWD) by adopting the guidelines and improving their existing system to ensure that the mandatory discounts are given whenever they purchase goods or services, whether in online, telephone or mobile transactions.

Senior Citizens and PWDs are entitled to avail of the 20% discount, with 12% VAT exemption on their purchase of specific goods and services under RA 9257 and RA 9442 as amended; and 5% special discount for basic necessities and prime commodities, for their exclusive use and enjoyment. Under the 5% discount, senior citizens and persons with disabilities have a maximum purchase amount of P1,300.00 a week for both online and offline transactions, without carryover of the unused amount. The amount shall be spent for the personal and exclusive consumption of the Senior Citizen and the PWD, and must be spent on at least four (4) kinds of items of basic goods and prime commodities.

Moreover, the Circular specifies that establishments are encouraged to redesign their business and website system/websites/applications to accommodate the provision of discounts for senior citizens and persons with disabilities. The redesign may include the establishment’s acceptance of the Senior Citizen or PWD’s submission of his or her ID; and the use of discount vouchers or codes, whether physical or electronic, reflecting the applicable discount that may be granted, provided that the discount shall not be lower than what is prescribed under the guidelines, or any applicable law.

DTI Secretary Ramon M. Lopez emphasizes, “Online shopping platforms need to reprogram their offering to incorporate a feature that allows discounts for persons with disabilities and senior citizens.”

To receive the discount, one must declare to the merchant prior to placing orders that he or she is a Senior Citizen or a PWD and submit supporting documents, such as a scanned copy or screenshot of ID, as well as the front and last pages of the purchase booklet. The same proof of discount entitlement should be presented upon the delivery of goods and orders.

DTI-Consumer Protection Group Undersecretary, Atty. Ruth B. Castelo, underscores, “The Department reminds senior citizens and persons with disabilities to only purchase from verified online platforms to avoid having their personal details used for other purposes”.