To customers

Article 12 Section 1 of the 1987 In grocery stores and departmental

Philippine Constitution stores, products for daily use are always
available for customers to be worry-free,
as well as new or updated products are
also available for the customers to try
SECTION 1. The goals of the national
out. Also, when customers are out to buy,
economy are a more equitable
they buy in small quantities and often
distribution of opportunities, income,
take much time as per convenience
and wealth; a sustained increase in the
which is provided by the retailers, they
amount of goods and services produced
also undertake the needs of the
by the nation for the benefit of the
customers and provide them with better
people; and an expanding productivity
products that may bring customer
as the key to raising the quality of life
satisfaction and also result in higher
for all, especially the underprivileged.
profit margin for the traders. Since
retailers keep a wide variety of products,
The State shall promote industrialization
customers can shop according to their
and full employment based on sound
needs based on the choice of quantity,
agricultural development and agrarian
brand, flavors, etc. Retail traders also
reform, through industries that make
give them the benefit of repairs, credit,
full and efficient use of human and
guarantees and other services that bring
natural resources, and which are
customer satisfaction.
competitive in both domestic and
foreign markets. However, the State
shall protect Filipino enterprises against Liberal Policy under the Retail Trade
unfair foreign competition and trade Law Act of 2000
practices.
Section 2. Declaration of Policy. – It is the
In the pursuit of these goals, all sectors policy of the State to promote consumer
of the economy and all regions of the welfare in attracting, promoting, and
country shall be given optimum welcoming productive investment that
opportunity to develop. Private will bring down price for the Filipino
enterprises, including corporations, consumer, create more jobs, promote
cooperatives, and similar collective tourism, assist small manufacturers,
organizations, shall be encouraged to stimulate economic growth and enable
broaden the base of their ownership. Philippine goods and services to become
globally competitive through the
liberalization of the retail trade sector.
Importance of Retail Trade
Pursuant to this policy, the Philippine
Retail traders play a significant role in the retail industry is hereby liberalized to
channeling of the distribution of goods encourage Filipino and competitive retail
from manufacturers to consumers. trade sector in the interest of
empowering the Filipino consumer
For manufacturers and wholesalers through lower prices, higher quality
goods, better services and wider
Manufacturers only think about the
choices.
production process and manufacturing
of useful goods, distribution of those
products are handled by the retailers. Constitutionality of Retail Trade
Products are collected from the factories Liberalization Act of 2000
and distributed in different places before
"Espina v. Zamora, Jr." (G.R. No.
finally selling to the customers.
143855)
Marketing is also taken care of by the
retail traders. Retail traders come in Facts of the Case: Petitioners challenged
direct contact with the customers, the constitutionality of Republic Act
therefore, they act as the feedback (R.A.) 8762, the Retail Trade
mechanism for the manufacturers and Liberalization Act of 2000. R.A. 8762,
also act as advertisers to the customers signed by President Joseph E. Estrada
on behalf of the manufacturers. on March 7, 2000, repealed R.A. 1180,
which had prohibited foreign nationals of a self-reliant and independent
from engaging in retail trade in the national economy controlled by
Philippines. Filipinos, it does not impose a policy of
Filipino monopoly. The Constitution
R.A. 8762 allowed foreign participation allows for the entry of foreign
in retail trade under four categories investments, goods, and services on the
based on investment amounts. basis of equality and reciprocity, and
Petitioners argued the law violated only limits protection against unfair
Sections 9, 19, and 20 of Article II of the foreign competition and trade practices.
1987 Philippine Constitution, which Section 10, Article XII of the 1987
mandate a self-reliant and independent Constitution gives Congress the
national economy controlled by discretion to reserve certain areas of
Filipinos. They contended the law would investments to Filipinos upon the
lead to alien control of retail trade, harm recommendation of the National
local retailers, and was improperly Economic and Development Authority
imposed by the World Bank-International (NEDA) and when the national interest
Monetary Fund. Respondents argued requires. Congress decided to open
petitioners lacked legal standing, the certain areas of the retail trade business
petition did not involve a justiciable to foreign investments, and the NEDA did
controversy, and the law did not violate not oppose this policy. R.A. 8762
the Constitution. provided strict safeguards on foreign
participation in retail trade, such as
limiting the types of retailing activities
Issue: foreign entities could engage in and
1. Do the petitioner lawmakers have ensuring reciprocity with foreign
the legal standing to challenge the countries. The Court concluded that the
constitutionality of R.A. 8762? petitioners failed to show how the retail
2. Is R.A. 8762 unconstitutional? trade liberalization had prejudiced local
small and medium enterprises since its
implementation. Therefore, the Court
Ruling:
dismissed the petition for lack of merit.
1. The Court ruled that the petitioner
lawmakers have legal standing to Note: A monopoly is a privilege or peculiar
challenge the constitutionality of advantage vested in one or more persons or
R.A. 8762. companies, consisting in the exclusive right (or
2. The Court upheld the power) to carry on a particular business or trade,
manufacture a particular article, or control the
constitutionality of R.A. 8762 and
sale of a particular commodity.
dismissed the petition for lack of
merit.
Definition and Coverage of Retail
Ratio: The Court addressed the issue of Trade
legal standing, noting that while the
petitioners did not show direct injury as Section 3. Definition. - As used in this Act.
taxpayers or legislators, the rule on
standing can be relaxed for (1) "Retail trade" shall mean any act,
nontraditional plaintiffs when the public occupation or calling of habitually
interest so requires or the matter is of selling direct to the general public
transcendental importance. Given the merchandise, commodities or good for
significance of the issue to society, the consumption, but the restriction of this
Court decided to resolve the question law shall not apply to the following:
raised by the petitioners. On the
(a) Sales by manufacturer, processor,
constitutionality of R.A. 8762, the Court
laborer, or worker, to the general public
explained that the provisions of Article II
the products manufactured, processed
of the 1987 Constitution, which include
or products by him if his capital does not
declarations of principles and state
exceed One hundred thousand
policies, are not self-executing and do
pesos(100,000.00);
not give rise to a cause of action in the
courts. The Court clarified that while the (b) Sales by a farmer or agriculturist
Constitution mandates the development selling the products of his farm;
(c) Sales in restaurant operations by a
hotel owner or inn-keeper irrespective of
the amount capital: provided, that the
restaurant is incidental to the hotel
business; and

(d) Sales which are limited only to

products manufactured, processed or
assembled by a manufacturer through a
single outlet, irrespective of
capitalization.

(2) "High-end or luxury goods" shall refer

to goods which are not necessary for
life maintenance and whose demand is
generated in large part by the higher
income groups. Luxury goods shall
include, but are not limited to products
such as; jewelry, branded or designer
clothing and footwear, wearing apparel,
leisure and sporting goods, electronics
and other personal effects.

Elements of Retail Trade

1. Habitual Act or business of selling

2. To the general public
3. Of merchandise, commodities, or
goods for consumption.