THE local chain of the coffee shop Starbucks has suspended its illegal move to limit the 20 percent discount and exemption from the 12 percent value added tax of senior citizens and persons with disabilities (PWDs) as a committee of the House of Representatives opened its investigation into the failure of business establishments to comply with existing laws mandating the grant of discounts to the elderly and disabled.
Lawmakers have said that Starbucks’ practice of limiting the discounts of senior citizens and PWDs to only one food item and one drink per visit was a blatant violation of the law.
Angela Cole, operations director of Starbucks Coffee, acknowledged during the hearing of the House Committee on Ways and Means that the company that the company made a “mistake” and that they have ordered the “immediate removal of the erroneous signages.”
Albay Rep. Joey Salceda, panel chair, ordered Starbucks Philippines, through its licensee Rustan Coffee Corp., to offer a drink and croissant to seniors and PWDs for a day as “as penance,” warning that the company may face prosecution for supposedly violating Republic Act No. 9994 or the Expanded Senior Citizens Act of 2010 and RA 10754, or the Act Expanding the Benefits and Privileges of PWDs.
“As penance, so, declare tomorrow as PWD and senior citizen day? Will you? So that you don’t repeat it?” Salceda asked Cole, who said: “I don’t know about the libre (freebies) but we will be more than happy to extend the discount that is rightfully, you know, to value our senior citizens and PWD customers.”
Salceda then proposed writing a letter to Rustan Coffee Corp. for a formal request, to which Cole agreed. “Sorry is not enough,” he said. “You know, your gross is 43 percent, so, in other words, your add-on is about 60 (percent), so that’s nothing and also these are old people, they cannot flock to Rustan’s.”
“You violated the law. Saying sorry is not enough. We will consider initiating prosecution,” Salceda told Cole, who promised to communicate the lawmaker’s demand to her bosses.
Rep. France Castro (PL, ACT) said that Starbucks would not have rectified its error had Speaker Martin Romualdez, the principal author of RA 10754, not ordered the House inquiry.
Cole said the signages restricting the legally-mandated discount to “one food item” and “one beverage,” “was not properly worded.”
Salceda said he received a similar complaint against bakery products chain Goldilocks, which is allegedly limiting the 20-percent discount “to one slice for every cake.” “We will look into this as well,” he said.
Just last month, the Pasig City Prosecutors Office filed two cases against two officials of the Marco Polo Hotel for declining to grant a 20 percent discount to a senior citizen. They were charged for violating two senior citizen laws: Section 4 (a)(7) of RA 9994 and Article 116 of Republic Act 7394 or the Consumer Act of the Philippines.
Election lawyer Romulo Macalintal, who is the complainant’s counsel, told the House hearing that he was expecting the arrest warrants to be issued yesterday.
Salceda said hotels should extend the 20 percent discounts to their senior citizen and PWD customers, whether their prices are promotional or regular rates.
He added that the discounts should also be extended by online sellers, including airline companies, adding that Philippine Airlines and Cebu Pacific have options on their websites for elderly passengers to avail themselves of the discount.
Macalintal said hotels should grant the discount when their customers check in even if their accommodation was booked through booking websites.
“The customer is not a party to whatever contract the booking site and the hotel have,” he said.
Macalintal also proposed that the previous discount granted to senior citizens and PWDs for using the expressways and skyways be restored.
Salceda said his committee would recommend remedial legislation or regulation to address gaps and confusion in the implementation of laws on discounts, privileges and benefits for senior citizens, PWDs and solo parents.
