CONSUMER REDRESS

FAIR TRADE ENFORCEMENT BUREAU

Department of Trade and Industry
CONSUMER REDRESS 2

Department of Trade and Industry

DTI – FAIR TRADE ENFORCEMENT BUREAU (FTEB)

was created to consolidate the business

regulation, consumer protection, and
enforcement functions of the DTI pursuant to
the Consumer Act of the Philippines or RA 7394.
CONSUMER REDRESS 3

Department of Trade and Industry

R.A. No. 7394 or the Consumer Act of the
Philippines advances the protection against
deceptive, unfair and unconscionable sales
acts and practices as well as promotes the
provision of information and education to
facilitate sound choice and the proper
exercise of rights by the consumer.
CONSUMER REDRESS 4

Department of Trade and Industry

R.A. No. 8792 or the “Electronic Commerce
Act of 2000”, extends the coverage of R.A.
No. 7394 to transactions made with the use of
electronic medium.
CONSUMER REDRESS 5

Department of Trade and Industry

Through the Joint DTI-DOH-DA Administrative
Order No. 01, series of 2008, “ONLINE
SHOPPING” is included in the coverage of
R.A. 7394, classified as transactions through
electronic means under R.A. 8792.
CONSUMER REDRESS 6

Department of Trade and Industry

Section 5 of Joint Administrative Order No. 01
requires retailers, sellers and suppliers
engaged in electronic commerce to provide
accurate, clear and accessible identification
of the following:
 7

Department of Trade and Industry

 Department of Trade and Industry (DTI)
and/or Securities and Exchange
Commission (SEC) registration;
 Name of the owner/proprietor of a retail
establishment in case of a single
proprietorship and names of directors and
other officers in case of a corporation.
 8

Department of Trade and Industry

 Principal geographical address of the
retailer, seller, distributor, supplier or
manufacturer, and when applicable, of
offices or agents in the Philippines;
 Website, e-mail address or other electronic
means of contact, telephone and fax
numbers of the retailer, and when
applicable, of its offices or agents in the
Philippines;
 9

Department of Trade and Industry

 Any relevant local or foreign government
registration/license numbers such as but not
limited to the local government unit’s permit to
operate, Taxpayer’s Identification Number (TIN),
when applicable.
 Contact details about any business association
or organization membership, when applicable;
and
 Representative Agent/s in the Philippines for
purposes of summons.
TRANSPARENCY ON PAYMENT, CHARGES, 10
AND DUES

Department of Trade and Industry

Section 5 of Joint Order 01 thus requires online
merchants to provide “sufficient, clear, accurate,
easily accessible information about the terms,
conditions and costs of the consumer transaction.
The required information includes applicable costs
not part of the price tag itself, such as delivery,
postage, handling, insurance, shipping charges,
taxes, and specific reference to any other
charges, customs fees and other fees that may be
imposed on or collected from consumers.”
TRANSPARENCY ON PAYMENT, CHARGES, 11
AND DUES

Department of Trade and Industry

In addition, online sellers are responsible for
informing the customer on “available
methods of payment, the security of those
payments methods in clear, simple
language, how to cancel regular
payments under those methods, and any
costs applicable to those payment
methods.”
TRANSPARENCY ON PAYMENT, CHARGES, 12
AND DUES

Department of Trade and Industry

In many cases, customers are surprised by
additional costs such as when the price tag
do no not include surcharges, or when a
“cheap” imported product do not disclose
additional payment of customs dues.
 13
Consumer complaint may be filed:

Department of Trade and Industry

PERSONALLY MAIL VIA EMAIL
Relief sought may be 3Rs
14

Department of Trade and Industry

Photo credits to the owner.
Common Violation of Business Establishment 15
and or Liability For Product and Services:

 Deceptive Sales Acts or Practices

Department of Trade and Industry

 Unfair or Unconscionable Sales acts or
practices
 Liability for the Defective products
 Service Imperfection
 False, Deceptive and Misleading
Advertisement
 No price Tag
 Conduct of Sales Promotion without the
required permit
Common Violation of Business Establishment 16
and or Liability For Product and Services:

Deceptive Sales Acts or Practices

Department of Trade and Industry

Photo credits to the owner.
 17

Deceptive Sales Acts or Practices

Department of Trade and Industry

 An act or practice is
deemed deceptive “whenever the producer,
manufacturer, supplier or seller, through
CONCEALMENT, FALSE REPRESENTATION OF
FRAUDULENT MANIPULATION, induces a consumer
to enter into a sales or lease transaction of any
consumer product or service.
 18

Deceptive Sales Acts or Practices

Department of Trade and Industry

Generally, when an establishment lies
to you or hides a material fact to
entice you to buy, the establishment
commits a deceptive sales act.
This occurs BEFORE, DURING or
AFTER the transaction.
Common Violation of Business Establishment 19
and or Liability For Product and Services:

Department of Trade and Industry

Unfair or Unconscionable Sales acts or practices

Photo credits to the owner.

 20
Unfair or Unconscionable Sales acts or practices

Department of Trade and Industry

When the manufacturer or seller takes
advantage of the CONSUMER’S PHYSICAL
or MENTAL INFIRMITY, IGNORANCE,
ILLITERACY, LACK OF TIME OR THE GENERAL
CONDITIONS OF THE ENVIRONMENT OR
SURROUNDINGS, induces the consumer to
enter into a sales or lease transaction.
Common Violation of Business Establishment 21
and or Liability For Product and Services:

Department of Trade and Industry

LIABILITY for DEFECTIVE PRODUCTS

Photo credits to the owner.

 22
LIABILITY for DEFECTIVE PRODUCTS

Department of Trade and Industry

A product is defective when it does not offer
the safety rightfully expected of it, not fit for
use, there is design defect, faulty because of
inadequate instructions or warning

NOTE: A product is not considered

defective because another better
quality product has been placed in
the market
 PROCESS OF
MEDIATION

Department of Trade and Industry

Notice of Mediation Proceedings Mediation is terminated
RECEIPT OF Mediation shall be shall be completed in the following
COMPLAINT issued within within seven (7) instances:
OR After three (3) working working days from the
days. • Execution of a
Notice of service of Notice of Mediation Agreement
Failure of the In case the Notice Mediation upon the • Submission of
BAGWIS cannot be served, business establishment Mediation agreement
the Mediation complained of. for Decision
AWARDEE Officer shall • Issuance of Certificate
business terminate the Such period may be to File Action (CFA)
establishment mediation extended for not more • Withdrawal of the
to settle the proceedings and than ten (10) working Complaint
complaint issue a certificate days as agreed by both
to file action parties.

1 2 3 4

Section 3-6 of Rule III

Revised Rules of Mediation and Adjudication of the Department of Trade and Industry

Confidential. For authorized use only. “Enabling Business, Empowering Consumers”

ADJUDICATION OF COMPLAINT:
PROCESS FLOW

Department of Trade and Industry

Receipt of the Complaint

Assignment to AO
Issuance of NOA (on the next
working day after the
assignment)
SECTION 5 of RULE IV

Submission of Position Paper

within a non-extendable period Any subsequent pleadings, if required by the AO for
of (10) working days from justifiable reason, shall be filed not more than 3 working
receipt of NOA. days from date of the ORDER requiring their filing.
SECTION 9 of RULE IV

Issuance of Order of Waiver to a party in a case for failure

to submit his/her position paper within the prescribed
period with a notice of his/her waiver of right to file the
same and the case shall be deemed submitted for decision
(Section 5, Rule IV)
Revised Rules of Mediation and Adjudication
of DTI
 Department of Trade and Industry
Case submitted for Decision, • Upon issuance of the ORDER in case of the Petition for
when Issuance of a Decision based on the Mediation Agreement
SECTIONS 10, 12 of RULE IV under Sec 6.2, Rule III)
• After the submission of the Position Papers of the parties
(Section 10 of Rule IV)
• After the lapse of the period to file the party’s Position Paper
(Section 10 of Rule IV)
• Upon termination of the Clarificatory Hearing, which may be
set by AO within 5 working days after the lapse of the period to
Decision shall be rendered file the PP (Section 12 of Rule IV)
within 15 working days from • After filing of the additional/subsequent pleadings (Section 12,
the time it is deemed Rule IV)
submitted for • After lapse of the three-day period for filing thereof,
resolution/decision. whichever is earlier (Section 12 of Rule IV)
SECTION 13 of RULE IV
 26

Department of Trade and Industry

For matters involving the sale of food, drugs,
cosmetics, health devices and hazardous
substances, consumers may contact the
Department of Health Food and Drug
Administration Office.
 27

Department of Trade and Industry

For matters involving the sale of agricultural,
primary and secondary processed goods such
as fertilizer, feed, and the like consumers may
contact the Department of Agriculture
Agribusiness and Marketing Assistance Office
at (02) 920-2216.
 28

Department of Trade and Industry

For matters involving “sellers” registered with
DTI or SEC, consumers may contact the DTI
through its consumercare@dti.gov.ph
 29

Department of Trade and Industry

For matters involving online fraud, consumers
may contact the following: the PNP – Anti-
Cybercrime Group, the NBI – Cybercrime
Division, or the DOJ – Office of Cybercrime.
FAIR TRADE LAWS

30
 DAO 19-03 series of 2019
IMPLEMENTING RULES AND REGULATIONS OF

GIFT REPUBLIC ACT NO. 10962 OTHERWISE KNOWN AS THE

“GIFT CHECK ACT OF 2017’

WHEREAS, the State, through the Department of Trade

CHECK and Industry (DTI), recognizes that a check represents

value held in trust by the issuer thereof on behalf of its
beneficiary or bearer and that consumers must not be
unduly deprived of the value of their money.

LAW
REPUBLIC ACT NO. 10962
WHEREAS, Section 12 of the [GIFT CHECK LAW] provides
that the DTI shall have the exclusive jurisdiction in the
implementation of this Act and shall promulgate the
necessary implementing rules and regulations

31
REPUBLIC ACT 10962
“GIFT CHECK ACT OF 2017” Coupon or Voucher

• instrument
• Issuer
GIFT CHECK/GIFT CARD • beneficiary
• monetary
• instrument (paper/card/code/other device) consideration/discount
• issuer
• beneficiary  may be exchanged for a pre-
• monetary consideration identified good or service
• valid until cessation of issuer’s business specified on the instrument
Issuer
 honored as payment for consumer goods
and services Is any person, natural or juridical,
upon presentation at a single merchant or who provides the instrument that
an affiliated holds value for which consumer
group of merchants goods or services will be
exchanged

Section 4. DEFINITION OF TERMS of R.A REPUBLIC ACT 10962 32

 SECTION 2
RULE II SCOPE
IMPLEMENTING RULES AND REGULATIONS OF
EXCLUSIONS
R.A 10962
“GIFT CHECK ACT OF 2017” The following kinds of instruments that are
issued to consumers are excluded from the
application of the Act and this IRR:
SECTION 1
Those issued –
SCOPE.
These Rules shall apply to all • under loyalty;
issuers, single or affiliated group • as rewards;
of merchants and holders of gift • under a promotional program;
checks.
• coupons or vouchers as defined in Sec. 2
(2.[2]) Rule I of this IRR; and
• those that are subsequently determined
by the DTI as excluded.

33
RULE III USE OF GIFT CHECKS
IMPLEMENTING RULES AND REGULATIONS OF R.A 10962
“GIFT CHECK ACT OF 2017”

SECTION 2. INSTANCES WHEN GIFT

CHECKS MAY NOT BE HONORED.

• failure to present gift check due to loss

not attributable to the issuer, and

• mutilated or defaced due to no fault of

the issuer to such extent that issuer
cannot identify the security and
authenticity features of the gift check

34
RULE III USE OF GIFT CHECKS
IMPLEMENTING RULES AND REGULATIONS OF R.A 10962
“GIFT CHECK ACT OF 2017”

SECTION 3

APPLICABILITY OF LAWS AND RULES PERTAINING TO

PROMOTIONAL PROGRAMS, WARRANTIES RETURN
POLICIES, AND SENIOR CITIZENS AND PERSONS WITH
DISABILITY DISCOUNT.

• likewise to purchases of goods and services that are paid for

with gift checks

35
RULE VI PROHIBITED ACTS
IMPLEMENTING RULES AND REGULATIONS OF R.A 10962
“GIFT CHECK ACT OF 2017”

SECTION 1

1.1 Issuing a gift check that bears an 1.6 Charging for the revalidation of gift
expiry date; checks in accordance to Section 1, Rule IX
of this IRR;
1.2 Imposing an expiry date on the stored
value, credit, or balance, of the gift check; 1.7 Refusal to revalidate gift checks in
accordance to Section 1, Rule IX of this
1.3 Refusing to honor the unused value,
IRR;
credit or balance stored in the instrument;
1.8 Issuance of a gift check in spite of
1.4 Compelling holders of gift check to
suspension or cancellation of authority to
consume the unused value, credit or
do the same, in accordance to Section 1.2
balance stored therein in a single or pre-
and 1.3 of Rule VII of this IRR; and
determined number of transactions;
1.9 Any other act or omission which violate
1.5 Charging holders of gift checks for the
any of the provisions of Republic Act No.
changing, upgrading or updating of gift
10962 or the “Gift Check Act of 2017”
checks;
36
Price Act
REPUBLIC ACT NO. 7581
AS AMENDED BY
REPUBLIC ACT NO. 10623

37
 State Policy:

• ensure the availability of basic necessities and prime commodities at

reasonable prices at all times without denying legitimate business a
fair return on investment.

• provide effective and sufficient protection to consumers against hoarding,

profiteering and cartels with respect to the supply, distribution, marketing
and pricing of said goods, especially during periods of calamity,
emergency, widespread illegal price manipulation and other similar
situations.

Sec. 2. Declaration of Basic Policy of R.A No. 7581 38

R.A. NO. 10623 “An Act Amending Certain Provisions of Republic Act. No. 7581, Entitled “An Act Providing Protection to Consumers by
Stabilizing the Prices of Basic Necessities and Prime Commodities and By Prescribing Measures Against Undue Price Increases During
Emergency Situations and Like Occasions” and for other Purposes

SECTION 1. Section 3(1) of Republic Act No. 7581, otherwise

known as the “Price Act”, is hereby amended to read as follows:
“SEC. 3. Definition of Terms. – For purposes of this Act, the
term:
“(1) Basic necessities’ are goods vital to the needs of
consumers for their sustenance and existence in times of any of
the cases provided under Section 6 or 7 of this Act such as, but
not limited to, rice, corn, root crops, bread; fresh, dried or
canned fish and other marine products; fresh pork, beef and
poultry meat; fresh eggs; potable water in bottles and
containers; fresh and processed milk; fresh vegetables and
fruits; locally manufactured instant noodles; coffee; sugar;
cooking oil; salt; laundry soap and detergents; firewood;
charcoal; household liquefied petroleum gas (LPG) and
kerosene; candles; drugs classified as essential by the 39
R.A. NO. 10623 “An Act Amending Certain Provisions of Republic Act. No. 7581, Entitled “An Act Providing Protection to Consumers by
Stabilizing the Prices of Basic Necessities and Prime Commodities and By Prescribing Measures Against Undue Price Increases During
Emergency Situations and Like Occasions” and for other Purposes

SEC. 2. Section 3(8) of Republic Act No. 7581 is hereby amended to read as
follows:
“SEC. 3. Definition of Terms. –
“x x x

“(8) ‘Prime Commodities’ are goods not considered as basic necessities but
are essential to consumers in times of any of the cases provided under
Section 7 of this Act such as, but not limited to, flour; dried, processed or
canned pork, beef and poultry meat; dairy products not falling under basic
necessities; onions, garlic, vinegar, patis, soy sauce; toilet soap; fertilizer,
pesticides and herbicides; poultry, livestock and fishery feeds and veterinary
products; paper; school supplies; nipa shingles; sawali; cement; clinker; GI
sheets; hollow blocks; plywood; plyboard; construction nails; batteries;
electrical supplies; light bulbs; steel wire; all drugs not classified as essential
drugs by the Department of Health and such other goods as may be included
under Section 4 of this Act.”
40
 SECTION 4. SECTION 1 RULE II OF JAO 1, s. 1993 is hereby amended as follows:

Section 1. The implementing agencies enumerated in Rule 1 Sec. 1 par. (3) thereof shall have jurisdiction over commodities enumerated
hereunder:

XXX
4. Department of Trade and Industry
(A) Basic Necessities (B) Prime Commodities
1. Bread 1. Flour
2. Canned Fish and Other Marine 2. Processed and Canned Pork
Products 3. Processed and Canned Beef and Poultry
3. Potable Water in Bottles and Meat
Containers 4. Vinegar, Patis, Soy Sauce
4. Processed Milk 5. Toilet Soap
5. Locally Manufactured Instant 6. Paper, School Supplies
Noodles 7. Cement, Clinker, G.I sheets
6. Coffee 8. Hollow Blocks
7. Salt 9. Construction Nails
8. Laundry Soap 10. Batteries, Electrical Supplies, Light
9. Detergent Bulbs
10. Candles 11. Steel Wires

Sec. 4 of DTI, DA, DOH, DENR, DOE JOINT ADMINISTRATIVE ORDER NO. 13-1, SERIES OF OF 2013
SUBJECT: AMENDMENTS TO THE DTI, DA, DOH, DENR JOINT ADMINISTRATIVE ORDER NO. 1 SERIES OF 1993 (JAO 1, S. 1993)
OTHERWISE KNOWN AS THE IMPLEMENTING RULES AND REGULATIONS OF R.A. NO. 7581 (PRICE ACT) 41
NO SHORT-CHANGING
ACT OF 2016

IRR OF REPUBLIC ACT NO. 10909 "NO

SHORTCHANGING ACT OF 2016"

42
IRR OF REPUBLIC ACT NO. 10909 “NO SHORTCHANGING ACT OF 2016”
AN ACT PROHIBITING BUSINESS ESTABLISHMENTS FROM GIVING INSUFFICIENT OR NO CHANGE TO
CONSUMERSAND PROVIDING PENALTIES THEREFORE”

RULE II: SCOPE AND COVERAGE

Section 1. “Scope and Coverage”

These rules shall apply to all business
establishments, registered or not.

43
 Sec. 4. Regulated Acts. – It shall be
the duty of the business establishment to give
the exact change to the consumer without
waiting for the consumer to ask for the same.

(a) In General. – It shall be unlawful for any

business establishment to shortchange a
consumer, even if such change is only of a
small amount. Nothing in this Act shall be GIVE
construed as a restriction for business
establishments to give an amount greater than
the sufficient change.

Sec. 4. Regulated Acts.

Republic Act No. 10909 “An Act Prohibiting Business Establishments From Giving Insufficient Or No Change To Consumers And Providing
Penalties Therefor” Otherwise known as ““No Shortchanging Act of 2016” 44
 (b) Other Prohibitions.

It shall also be unlawful for any

business establishment which sells
goods or provides services to give the
change in any form other than the
present currency or to ask the
consumers for permission to be
exempted from the provisions of this Act
for any reason, including the non-
availability of small bills or coins.

Sec. 4. Regulated Acts.

Republic Act No. 10909 “An Act Prohibiting Business Establishments From Giving Insufficient Or No Change To Consumers And Providing
Penalties Therefor” Otherwise known as ““No Shortchanging Act of 2016” 45
 (C) PRICE TAGS.

It shall likewise be the DUTY of business

establishments TO USE PRICE TAGS, when
appropriate, indicating the exact retail price per
unit or service which already includes the taxes
applicable to the goods or services being offered.

These establishments shall also put signs in

conspicuous places within the establishments or
reflect in the official receipts issued, the taxes
incorporated in the retail price per unit of goods or
services. This is to avoid misleading the
consumers as to the exact price they have to pay
for the goods or services and, consequently, the
exact change due them.

Sec. 4. Regulated Acts.

Republic Act No. 10909 “An Act Prohibiting Business Establishments From Giving Insufficient Or No Change To Consumers And Providing
Penalties Therefor” Otherwise known as ““No Shortchanging Act of 2016” 46
 Department of Trade and Industry
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