Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

SEVENTEENTH CONGRESS
Second Regular Session

7337

House Bill No.

INTRODUCED BY REPRESENTATIVE ALFRED VARGAS

EXPLANATORY NOTE
Article 2, Section 9 of the 1987 Philippine Constitution pronounces that:

“The State shall promote a just and dynamic social order that will ensure
the prosperity and independence of the nation and free the people from
perity ep peop!
poverty through policies that provide adequate social services, promote full

employment, a rising standard of living, and an improved quality of life for
all.”

‘The use of credit cards for most everyday transactions is widely practiced here in
the Philippines. However, a different, higher price are charged by merchandising stores
and service establishments when a consumer is using a credit card. Wit the evident
objective of passing the processing fees charged by the credit card companies to the
consumers. Fairness dictates that it should be the burden of the merchandising stores
and service establishments,

Nevertheless, whether or not the purchase is made through cash, credit card or
any other payment mode, consumers must only pay the price indicated in the price tag

This bill is being proposed with the aide of leveling the playing field. The
proponent acknowledges the right of businesses to take the necessary steps to ensure
profitability, however, it does not follow that the consuming public shall always bear the
burden of these businesses.

In view of the foregoing, the immediate enactment of this measure is earnestly
sought.

FRED VARGAS


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

SEVENTEENTH CONGRESS
Second Regular Session

House Bil No._2337

INTRODUCED BY REPRESENTATIVE ALFRED VARGAS

AN ACT PROHIBITING MERCHANDISING STORES AND SERVICE
ESTABLISHMENTS FROM CHARGING MORE THAN THE CASH RETAIL
PRICE OF GOODS AND SERVICES PURCHASED WITH CREDIT CARDS AND
PRESCRIBING PENALTIES FOR ANY VIOLATION

Beit enacted by the Senate and the Huse of Representatives of the Philippine in Congress assembled:

SECTION 1. It shall be unlawful for any merchandising store or service establishments to
charge the customers more than the actual cash retail price of the goods and services purchased
when such purchase is done with the use of a credit card. It shall also be unlawful for the said
entities to limit bargain sale items and services to cash purchases,

SECTION 2. Any person who shall violate the provision of this Act shall be punished with
imprisonment of not less than six (6) months but not more than one (1) year or a fine not less
than Twenty Thousand Pesos (P20,000.00) but not more than One Hundred Thousand Pesos
(100,000.00), or both at the discretion of the court. In case of a partnership, association,
corporation or any judicial person, the penalty shall be imposed on the president, treasurer of
any other officer or person responsible for the violation.

SECTION 3. In addition, the license to operate the business establishments shall be suspended
for six (6) months or in the case of recidivism, cancelled, as the case may be. If the offeeder is
an alien, he shal, after service of sentence, be deported immediately without further proceedings
in the Bureau of Immigration.

SECTION 4. Repealing Clause. All laws, rules and regulations or parts thereof inconsistent
with the provisions of this Act are hereby repealed or modify accordingly.

SECTION 5. Separability Clause. If any part, section or provision of this Act shall be held
invalid or unconstitutional, no other par, section or provisions thereof shall be affected thereby.

SECTION 6. Effectivity. ‘This Act shall take effect fifteen (15) days following the completion
of its publication in the Official Gazette or two (2) newspapers of general circulation

Approved,