Tolentino & Associates Law Office

March 13, 1992 Tolentino & Associates Law Office c/o Ma. Lolita S. Libunao 3/F, Solidmills Blgd., Dela Rosa St., Legaspi Village, Makati, Metro Manila Gentlemen : This refers to your letter dated February 19, 1992 inquiring whether the business of inns and/or lodging houses is under the coverage of Retail Trade Law. Section 4 of R.A. No. 1180, as amended by P.D. No. 714, otherwise known as the Retail Trade Nationalization Law, reads, as follows: "SECTION 4. As used in this Act, the term "retail business" shall mean any act, occupation or calling of habitually selling direct to the general public merchandise, commodities or goods for consumption . . . ." (Emphasis supplied) Under the aforecited provision, it is clear that for an activity to be considered as "retail", the business being undertaken should be habitual selling of merchandise, commodities or goods for consumption . Thus, the Department of Justice consistently held that "to constitute a retail business under the Act, the following requisites must be present: (1) habitually selling merchandise, commodities or goods; (2) direct to the general public; and (3) for consumption." (Opinion No. 178, s. 1983, citing Ops. Sec. of Justice, No. 253 s. 1954; No. 47, s. 1955; 160, s. 1963) The abovementioned requisites are not present in the business of inns and/or lodging houses. Accordingly, said business activity is not considered a "retail business" within the contemplation of the Retail Trade Nationalization Law. Please be advised accordingly. Very truly yours, (SGD.) ROSARIO N. LOPEZ Chairman