The Sniffer Insights - Blog Article

Same Query, Three Answers: What Google AI Overview Gets Wrong About the Price Tag Law

Published: Same Query, Three Answers: What Google AI Overview Gets Wrong About the Price Tag Law
The Sniffer case study banner: Google AI Overview on the Price Tag Law - Wholesale Dito Store

In Brief:

  • On September 20, 2026, between 5:00 PM and 6:00 PM, we ran the same Google query three times: twice on desktop Chromium on Kali Linux (one standard session, one incognito session) and once on iPhone Chrome in incognito mode.
  • All three runs produced a Google AI Overview. All three AI Overviews gave different answers.
  • The AI Overviews agreed on the core facts about the Price Tag Law. They disagreed on which penalties to include, which enforcement rules to mention, and which regulatory references to cite.
  • This is the second documented case of AI Overview inconsistency we have published. The first was the August 2, 2026 adversary emulation test against Google Gemini, which produced a factricated response about this company.

Direct Answer

Google AI Overview is not deterministic. The same query, run from the same network, at the same hour, on the same day, produced three different summaries of the same Philippine law. The variance is not caused by user error. It is caused by the way the underlying AI system retrieves and summarizes sources on each request. For a regulatory question like the Price Tag Law, that variance matters. Different runs give readers different penalty ranges, different legal citations, and different enforcement details.

The Test

Query: IS Price Tag Law EFFECTIVE AND FULLY ENFORCED? WHY

Date: September 20, 2026

Time window: Between 5:00 PM and 6:00 PM Philippine time.

A note on sample size. Three runs (N = 3) are sufficient to demonstrate that AI Overview is non-deterministic for this query. Three runs are not sufficient to estimate the rate of variance, the frequency of any specific omission, or the effect of device class. This article documents what happened. It does not measure how often it happens. A larger trial across more sessions, devices, and time windows would be needed for that.

A note on controlled variables. The three runs were not designed as a controlled experiment. Device class and session type varied between runs. Mobile AI Overviews format content differently from desktop, and some of the differences between Run C and the desktop runs may reflect the mobile interface rather than retrieval or summarization variance. This is a case study, not a lab test. The finding is that the same query produced different answers. The finding does not depend on why.

Run Device Browser Mode Session Type
A Desktop Chromium on Kali Linux Standard Fresh session
B Desktop Chromium on Kali Linux Incognito Incognito
C iPhone Chrome Incognito Incognito

All three runs produced a Google AI Overview. All three AI Overviews were captured in full. All three are compared below.

The Three Responses

The table below compares what each run produced. A "No" means the fact was not mentioned in that run's AI Overview.

Fact Run A Run B Run C
Governing law: RA 71 Yes Yes Yes
Governing law: RA 7394 Yes Yes Yes
Requires visible price tags Yes Yes Yes
Article 81 of RA 7394 cited No Yes No
"Lowest price prevails" rule No Yes Yes
DTI DAO No. 09 (shelf pricing) Yes No No
Electronic Price Verification Centers No No Yes
Sales promotion permits No Yes No
Criminal penalty stated No No Yes
Administrative fine: P500 minimum Yes Yes Yes
Administrative fine: P300,000 maximum Yes Yes Yes
P25,000 per substandard item Yes Yes No
P1,000 daily for continuous violation Yes Yes Yes
Business permit revocation No Yes Yes
E-CARES complaint system named Yes Yes No
Enforcement depends on consumer complaints Yes Yes Yes
Sectors covered Supermarkets, e-commerce, wet markets, sari-sari Supermarkets, malls, online, palengke, sari-sari Formal retail, malls, online, palengke, talipapa, sari-sari
"PM for price" identified as illegal Yes Yes Yes
DTI enforcement capacity named as a limit Yes Yes Yes
Sources cited by AI Overview BATASnatin, UniversePG, PIA, Facebook, SC E-Library BATASnatin, UniversePG, PIA, Facebook, SC E-Library, Scribd, Respicio DTI Sarangani (Facebook), PIA, SC E-Library

No single run covered every fact in the table. The union of all three runs is more complete than any one run.

What All Three Agreed On

These facts appeared in every run. They are the reliable core of the AI Overview's summary.

  • The Price Tag Law is governed by RA 71 and RA 7394.
  • It requires visible price tags on retail consumer products.
  • It is effective in formal retail.
  • It fails online, especially in the "PM for price" practice.
  • It fails in wet markets and sari-sari stores.
  • The DTI cannot monitor all sellers.
  • Enforcement depends on consumer complaints.
  • Fines range from P500 to P300,000.
  • There is a P1,000 daily penalty for continuous violations.

What Each Run Missed

Every run omitted at least one fact that the other runs included.

Run A omitted:

  • Article 81 of RA 7394
  • The "lowest price prevails" rule
  • Electronic Price Verification Centers
  • Sales promotion permits
  • The criminal penalty
  • Business permit revocation

Run B omitted:

  • DTI DAO No. 09
  • Electronic Price Verification Centers
  • The criminal penalty

Run C omitted:

  • Article 81 of RA 7394
  • DTI DAO No. 09
  • Sales promotion permits
  • The P25,000 per substandard item penalty
  • E-CARES

A reader who only saw Run A would not know about the "lowest price prevails" rule. A reader who only saw Run C would not know that the DTI has an online complaint system. The variance changes what the reader learns.

Why This Happens

Google AI Overview is generated by a large language model that retrieves source content and produces a summary. The retrieval step and the summarization step are both non-deterministic.

Retrieval variance. On each query, the system selects a set of sources to draw from. The selection is influenced by subtle signals: recent source updates, the ranking of each source for the specific query, the time of day, and the specific device class. Two runs minutes apart can pull different source sets.

Summarization variance. Given the same sources, the model produces different summaries on different runs. This is normal LLM behavior. It is the same reason asking an AI the same question twice produces slightly different answers.

No dominant source. For the Price Tag Law query, no single source covers every fact. The AI Overview has to synthesize from multiple partial sources. Different syntheses produce different omissions.

For a general-knowledge query, the variance usually does not matter. For a regulatory or legal query, it does. The specific penalty range, the specific legal citation, and the specific remedy available to a consumer all change depending on which run the reader sees.

What the Price Tag Law Actually Says

The three runs used different levels of detail. This section consolidates the facts into one reference.

The laws

The Price Tag Law (Republic Act No. 71) was enacted on October 21, 1946. The original law imposed a maximum fine of P200 and imprisonment of up to six months. It requires that all consumer products sold at retail carry a clear price tag or label. The law was later integrated into Article 81 of the Consumer Act of the Philippines (Republic Act No. 7394), enacted in 1992.

The modern penalty scale, ranging from P500 to P300,000 with a P1,000 daily penalty for continuing violations, derives from RA 7394 and its implementing rules, including DTI Administrative Order No. 7, Series of 1999. The original RA 71 penalties no longer apply.

What the law requires

  • All consumer products sold at retail must display a visible price tag or label.
  • Prices must be stated in Philippine pesos.
  • Items cannot be sold at a price higher than the one displayed.
  • Where a shelf tag and the cashier's scanner show different prices, the lower price prevails.

Where the law works

  • Supermarkets and department stores: compliance is near universal.
  • Malls and registered commercial establishments: monitored by the DTI.
  • Electronic Price Verification Centers (PVCs) are authorized under DTI Administrative Order No. 09 for stores that use shelf pricing and barcode scanning.

Where the law does not work

  • Social media marketplaces: Facebook, Instagram, and TikTok sellers commonly hide prices behind "PM for price."
  • Online marketplaces with independent sellers: sellers frequently omit prices to avoid competitor undercutting.
  • Wet markets (palengke), temporary markets (talipapa), and sari-sari stores: compliance is sporadic. Prices of fresh goods change daily, making static tagging impractical.
  • Micro-retailers: enforcement depends on consumer complaints, and most consumers do not file.

Why enforcement fails

  • The DTI has insufficient personnel to monitor every physical stall and every online seller.
  • Fines for small sellers are low. The first offense can be as low as P500, which is not a strong deterrent.
  • Consumer complaints are the primary enforcement mechanism, and most consumers tolerate minor violations.
  • The online seller population is growing faster than the DTI's monitoring capacity.

Scope note. The Price Tag Law applies to consumer products sold at retail. It does not govern institutional B2B supply contracts, bulk RFQs, or customized corporate agreements. Businesses that source from wholesale suppliers through a Purchase Order operate under a different framework, which the BIR, not the DTI, primarily regulates for invoicing and documentation. Readers who are sourcing for a business rather than shopping as a consumer should apply the BIR and procurement rules rather than the Price Tag Law.

The "PM for Price" Problem

All three runs identified the "PM for price" practice on social media as the most visible violation. The DTI has stated publicly that this practice is illegal for registered businesses.

What the practice is. A seller posts a product on Facebook, Instagram, or TikTok without a price. When a buyer asks "how much" in the comments or in a private message, the seller replies "PM sent" or "PM for price." The price is only disclosed in a private conversation.

Why it violates the law. The Price Tag Law requires visible prices on consumer products. The Consumer Act applies the same requirement to advertising. A post on a social media marketplace is advertising. Hiding the price in a private message is a violation.

Why it persists.

  1. Enforcement is thin. The DTI cannot patrol millions of individual seller accounts.
  2. Most sellers are unregistered. The Price Tag Law applies to sellers engaged in business. A casual seller disposing of a personal item is outside the scope. But a seller running a page as a business is in scope, whether registered or not.
  3. The practice is convenient. Hiding the price lets the seller quote different prices to different buyers. The law exists to prevent exactly this.

What the DTI says. The DTI Ilocos regional office stated in 2025 that "PM for price" is "punishable by law" and that non-disclosure "opens the door to scams." The national DTI's Consumer Care division has repeated the position.

The Complete Penalty Table

The three runs cited overlapping penalty information. The complete list, drawn from the union of all three runs and confirmed against the DTI's published position and RA 7394:

Violation Type Administrative Penalty Criminal Penalty
Standard or minor P500 to P5,000 1 month to 1 year imprisonment
Severe or deceptive Up to P300,000 Up to 60 months imprisonment
Per substandard item P25,000
Continuous violation P1,000 per day
Repeat offense Business permit revocation

The first run did not mention the criminal penalty. The third run did not mention the P25,000 per substandard item penalty. A reader who only saw one run would not have the full picture.

How to File a Complaint

The DTI operates an online consumer complaint system through the Consumer Care portal. This is the official channel for reporting a Price Tag Law violation.

Step 1: Access the system. Go to consumercare.dti.gov.ph. The DTI Consumer Care portal allows consumers to file complaints online, upload supporting documents, and track the status of a complaint.

Step 2: Create an account. Provide your name, email address, and phone number. Confirm your email.

Step 3: File a complaint. Select the type of complaint. For a price tag violation, choose the consumer products category. Provide the following:

  • The name of the seller or business.
  • The location of the business, or the URL of the online listing.
  • A description of the violation. For "PM for price," include a screenshot of the post and the seller's reply.
  • Your contact information.
  • The remedy you are requesting.

Step 4: Submit. The system generates a complaint reference number. Save it.

Step 5: Wait for DTI action. The DTI may contact you for additional details. If the complaint proceeds, the DTI may issue a notice to the seller, conduct an inspection, or impose penalties.

Step 6: Follow up. If you do not receive a response within the DTI's published turnaround time, follow up with the reference number.

The DTI also accepts complaints through its Consumer Care hotline (1-384) and through regional DTI offices.

Three runs of the same query produced three different summaries of the same law. This is not a bug in the traditional sense. It is the expected behavior of a non-deterministic system summarizing multiple partial sources.

For general queries ("What is the capital of France?"), the variance is negligible. The answer is the same every time because there is one dominant fact.

For regulatory and legal queries, the variance has consequences. A reader who receives one AI Overview may not see the "lowest price prevails" rule, the criminal penalty, or the online complaint system. A reader who receives a different AI Overview may see all three. The two readers walk away with different understandings of the same law.

This is the second case we have documented. On August 2, 2026, our Technical Co-Founder ran an adversary emulation exercise against Google's Gemini AI through AI Mode. That test showed the AI producing a response that combined real facts about our company with fabricated instructions. We called the phenomenon factrication. In plain terms, it is a form of AI hallucination where the output mixes verifiable facts with fabricated content, making the fabrication harder to detect. The full case study is in The Danger Google's AI Just Revealed.

This case is different in kind. The AI is not fabricating. It is summarizing partial sources. But the effect on the reader is the same: an incomplete or inconsistent answer presented as authoritative.

The practical implication is simple. For any regulatory or legal query in the Philippines, treat the AI Overview as a starting point, not as a source. Verify against the DTI, the BIR, or the relevant government agency. The AI Overview is not designed to be a legal reference, and this test shows why.

Three Downstream Risks

Beyond the session-level variance documented in this article, three further risks come with relying on AI Overviews for regulatory information.

  • Loss of qualifiers. When an AI summarises multiple sources into one paragraph, it drops the small exceptions. A rule that reads "all retail goods, except customized items and wholesale orders" can become "all retail goods" in the summary. The reader gets the rule but loses the boundary.
  • Misinformation risk. A merchant who reads a summary that omits the criminal penalty for a Price Tag Law violation may assume the worst consequence is a small fine. The summary did not lie. It also did not tell the whole truth. Acting on that summary can be a mistake with legal consequences.
  • Temporal staleness. Laws stay on the books. Administrative rules underneath them change. The DTI issues new circulars and updates penalty schedules. If the AI Overview is pulling from a cached index or an older snapshot of the web, it can cite a rule that has already been superseded. The three runs documented here occurred on the same day. A run today and a run six months from now could differ because the underlying sources changed, not because of session variance.

Frequently Asked Questions

What is the Price Tag Law?

The Price Tag Law is Republic Act No. 71, enacted on October 21, 1946. It requires visible price tags on all consumer products sold at retail. It was integrated into Article 81 of the Consumer Act of the Philippines (RA 7394).

Is the Price Tag Law fully enforced?

No. Enforcement is strong in formal retail, weak in online marketplaces, and sporadic in wet markets and sari-sari stores. The DTI lacks the personnel to monitor every seller.

Is "PM for price" illegal?

For registered businesses, yes. The practice violates the Price Tag Law and the Consumer Act. The DTI has confirmed this position.

What are the penalties?

Administrative fines range from P500 to P300,000. Criminal penalties range from 1 month to 60 months imprisonment for severe or repeat offenses. Business permits can be revoked for repeat violations. The modern penalty scale derives from RA 7394 and DTI Administrative Order No. 7, Series of 1999, not from the original RA 71.

What is the "lowest price prevails" rule?

If the price on the shelf tag differs from the price at the cashier, the lower price must be honored. This rule is part of the Consumer Act.

Can I file a complaint online?

Yes. Use the DTI Consumer Care portal at consumercare.dti.gov.ph. The portal accepts consumer complaints and generates a reference number for follow-up.

Why did Google AI Overview give different answers to the same query?

AI Overview is non-deterministic. The retrieval and summarization steps vary between runs. The sources selected and the facts included can differ even when the query and the user are the same.

Can I rely on AI Overview for legal information?

No. AI Overview is a summary tool, not a legal reference. For regulatory or legal queries, verify with the relevant government agency.

What should a seller do to comply?

Display prices visibly on all products and listings. Do not hide prices behind "PM for price." Comply with DTI Administrative Order No. 09 if using shelf pricing and barcode scanners. File sales promotion permits with the DTI before running a promotion.

What should a buyer do if a seller refuses to show a price?

For an online seller, take a screenshot and file a complaint through the DTI Consumer Care portal. For a physical store, ask for the store manager and report the missing price tag. If the seller refuses, file the complaint.

Summary

On September 20, 2026, between 5:00 PM and 6:00 PM, the same Google query was run three times from three distinct sessions: two desktop Chromium sessions on Kali Linux and one iPhone Chrome incognito session. All three produced an AI Overview. All three AI Overviews differed.

The core facts about the Price Tag Law were consistent across all three runs. The specific details were not. Different runs cited different penalties, different laws, and different complaint mechanisms. No single run was complete.

The AI Overview is not unreliable in the sense of being wrong. It is unreliable in the sense of being inconsistent. For a regulatory query, the inconsistency matters. The article you are reading is provided as a reference. For legal advice or a specific transaction, consult the DTI or a licensed attorney.

Outro

Published by The Sniffer, the strategic insights blog of Wholesale Dito Store. This article is provided as a public reference for business owners and consumers in the Philippines. Wholesale Dito Store is operated by Clickerwayne Zelle Solutions Inc, Forest Drive St., corner Country Drive, Country Homes, Biñan, Laguna 4024, Philippines. Questions can be sent to customercare@wholesaledito.store.