REPUBLIC ACT NO. 10909
AN ACT PROHIBITING BUSINESS ESTABLISHMENTS FROM GIVING INSUFFICIENT OR NO CHANGE TO CONSUMERS AND PROVIDING PENALTIES THEREFOR
SECTION 1. Short Title. — This Act shall be known as the "No Shortchanging Act of 2016".
SECTION 2. Declaration of Policy. — It is the policy of the State to protect the interest and promote the general welfare of the consumer as well as establish standards of conduct for business and industry. Towards this end, the State shall implement measures to achieve the following objectives:
(a) Protection of consumers against deceptive, unfair and unconscionable sales acts and practices;
(b) Institutionalization of the industry practice of giving exact change to consumers of goods and services;
(c) Provision of information and education to facilitate sound choice and the proper exercise of rights by the consumer;
(d) Provision of adequate rights and means of redress for consumers; and
(e) Provision of penalties for offenders.
SECTION 3. Definition of Terms.— For the purpose of this Act, the following terms shall mean:
(a) Business establishment — any...
Summary of Republic Act No. 10909 ("No Shortchanging Act of 2016")
Declaration of Policy (Section 2):
- Protect consumer interests and promote general welfare
- Achieve objectives such as:
- Protect against deceptive, unfair sales practices (2a)
- Institutionalize giving exact change (2b)
- Provide consumer information and education (2c)
- Provide consumer rights and means of redress (2d)
- Provide penalties for offenders (2e)
Definitions (Section 3):
- Business establishment: Any entity engaged in selling goods or providing services in the Philippines (3a)
- Change: Excess payment given by consumer (3b)
- Consumer: Natural person who purchases goods or services in cash (3c)
- Goods: Tangible property that can be bought and sold (3d)
- Gross sales: Total invoice value of sales before deductions (3e)
- Insufficient change: Change less than what is due to consumer (3f)
- Price tag: Device indicating retail price per unit or service (3g)
- Services: Commercial activities enabling supply, access, consumption or use of goods, intellectual property or other services (3h)
- Shortchange: Act of giving insufficient or no change to consumer (3i)
Regulated Acts (Section 4):
- Business establishment must give exact change without consumer asking (4)
- Unlawful to shortchange consumer, even for small amount (4a)
- Unlawful to give change in form other than current currency or ask for exemption due to lack of small bills/coins (4b)
- Must use price tags indicating exact retail price per unit/service including taxes, and display signs or reflect taxes on receipts (4c)
Complaint Procedures (Section 5):
- Consumer must submit complaint to DTI within 10 working days of violation (5a)
- DTI must investigate and issue notice to establishment within 10 working days (5b)
- DTI must issue decision and findings within 30 days of receiving complaint (5c)
- Does not limit or impair consumer rights and remedies under other laws (5d)
Penalties (Section 6):
- First offense: P500 or 3% of gross sales on violation day, whichever is higher (6)
- Second offense: P5,000 or 5% of gross sales on violation day, whichever is higher (6)
- Third offense: P15,000 or 7% of gross sales on violation day, whichever is higher, and 3-month license suspension (6)
- Fourth offense: P25,000 or 10% of gross sales on violation day, whichever is higher, and license revocation (6)
- Establishment must pay complainant the total amount of change not given (6)
Implementing Rules and Regulations (Section 7):
- DTI must promulgate rules and regulations within 120 days of Act's effectivity, in consultation with stakeholders and agencies (7)
Information Campaign (Section 8):
- DTI must implement education campaign to inform consumers of Act's provisions (8)
- DTI must regularly publish list of establishments found violating the Act (8)
