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Republic of the Phil tad? a
public of the Philippines . - JUN 99
HOUSE OF REPRESENTATIVES 2 LATEs JUN 29 20m
Quezon City

EIGHTEENTH CONGRESS
Second Regular Session

House ait no, 7038

Introduced by HON. JOY MYRA S. TAMBUNTING

EXPLANATORY NOTE

With the onslaught of COVID-19 pandemic, online shopping has become the new normal for
buying various goods and products, including food and groceries, As we enter a new normal, food
and grocery deliveries are increasingly becoming a popular and preferred way of shopping for
households as they offer the ease of buying food without leaving the safety of their homes,

In most of these food and grocery deliveries such as GrabMart, GrabFood, Angkas Pabili and other
similar services, consumers order food or groceries through an application or website, and
delivery riders purchase and deliver the orders to consumers’ doorsteps for a fixed delivery fee.
Thus, the food and grocery delivery sector not only offer consumers a safe and convenient way
of shopping, it also gives riders and drivers from ride-hailing apps the opportunity to earn since
ride-hailing services such as motorcycle taxis are not allowed to operate yet.

Most of these food and grocery delivery services operate on a reimbursement basis wherein a
delivery rider will have to cover the cost of transaction and be reimbursed by the customers after
they deliver the goods. Food and grocery delivery service providers usually offer cash-on-delivery
as @ payment scheme, which leaves delivery riders vulnerable to fraudulent schemes such as
unreasonable cancellation of orders after rider has already paid for the orders and/or in
Possession of the order, giving out wrong delivery addresses and other pranks.

As it is, there currently are pages and groups in social media devoted to helping delivery riders
who have been victimized by such activities or pranks. In these groups, delivery riders sell items
which are already in their possession but were not received by their customers, usually without
charging a delivery fee. This is so they could regain the money which they need to cover future
transactions. These activities are extremely burdensome to the delivery riders as it wastes their
time (with the original transaction and the succeeding transaction wherein they would have to
look for potential takers of the unreceived items) and they lose capital to engage in further
transactions.

In such a time where staying at home is a privilege, we acknowledge and salute the people whose
hard work makes staying at home possible. More importantly, it is imperative that we find ways
to protect these people.


It is in this light, that this measure aims to protect delivery riders from such inconveniences by
penalizing unreasonable cancellation of confirmed orders that have already been paid for by the
delivery riders. This bill also requires service providers to reimburse delivery riders the amount
covering the cancelled order, plus the delivery fee for the transaction.

On behalf of the people of Parafiaque City’s Second District, and for the common good of the
Filipino people, the approval of the said measure is earnestly sought,

Ie

MYRA S. TAMBUNTIN(
ind District, Parafiaque City



Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

EIGHTEENTH CONGRESS
Second Regular Session

HOUSE BILL NO. __7038

Introduced by HON. JOY MYRA S. TAMBUNTING

AN ACT PROVIDING PROTECTION TO INDIVIDUALS ENGAGED IN THE FOOD AND

GROCERY DELIVERY SERVICES

Be it enacted by the Senate and House of Representatives of the Philippines in Congress

assembled:

SECTION 1. Short Title. - This Act shall be known as Food and Grocery Delivery Services

Protection Act.

SEC. 2. Definition of Terms. - Whenever used in this Act, the following terms shall have the

respective meanings hereafter set forth:

a) Food and Grocery Delivery Services — Services where the service provider buys food
and grocery items from a third party seller and advance the payment for said purchase
for a fee;

b) Food and Grocery Delivery Service Providers — persons or entities who are engaged in
the business of food and grocery services by way of mobile phone applications,
internet webpages or similar platforms. Online marketplace are expressly excluded
from the foregoing definition;

©) Delivery Riders - persons who directly advance and deliver food and/or grocery items
on behalf of the Food and Grocery Delivery Service Providers and in favor of
Customers;

d) Customers — any person, individual, group of individuals, business establishment,
partnership, association, and corporation availing the services of Food and Grocery
Delivery Services under their name or through another person for their benefit; and

e) Confirmed Order - There shall be a confirmed order once the Customer sent his
confirmation to the Delivery Rider with respect to the order for the purchase of food
and/ or grocery items.

SEC. 3. Prohibited Acts. - The below listed acts are expressly prohibited, as follows:


@) Unless otherwise provided in this Act, it shall be unlawful for any Customer to cancel
confirmed orders for the delivery of food and/ or grocery items when the said items have
already been paid by or is already in the possession of the Delivery Rider or otherwise is
in transit to the Customer. This also covers instances wherein Customers order food and/
or grocery items for the purpose of pranking or those who has no genuine intention of
availing of the service which causes damage and undue duress to the Delivery Riders and
their corresponding Service Providers; and

b) It shall be unlawful for any Customer to shame, demean, embarrass, or humiliate the
Delivery Riders across any platform.

SEC. 4. Exception. - The following shall be considered as exemptions from the prohibited
cancellation of confirmed orders mentioned in Section 3, Paragraph (a), as follows:

a) When the Customer uses credit card services as a mode of reimbursement and payment
and any such reimbursement and payment will still be credited to the Food and Grocery
Delivery Service Provider notwithstanding the cancellation;

b) The Customer remits to the Food and Delivery Service Provider any such reimbursement
and payment as a pre-condition for the cancellation of order; and

©) The delivery of ordered food or grocery items will be or was delayed for at least one (1)
hour from the expected time of arrival given by the Delivery Rider upon confirmation of
order except when the Customer was previously notified by the Delivery Rider or the
Service Provider of the impending delay and such delay was not caused by the fault or
negligence of the Delivery Rider.

SEC. 5. Penalties. — Violation of the prohibited acts under Section 3 shall be accorded the below
listed penalties, to wit

@) Violation of Section 3, Paragraph (a) herein mentioned shall result to a penalty of Prision
Correccional in its medium period. The violator shall likewise be liable for a fine ranging
Fifty Thousand Pesos to One Hundred Thousand Pesos. The violator shall likewise
reimburse the Food and Delivery Service Providers for the value of the food and grocery
items advanced by the Delivery Rider and be made to pay said Food and Grocery Deliver
Service Provider an amount of money double the fee pertinent to the cancelled
transaction; and

b) Violation of Section 3, paragraph (b) herein mentioned shall result to a penalty of Arresto
Mayor in its maximum period,

SEC. 6. Application of other Laws. - All prohibited acts defined and penalized by this Act, if
committed by, through and with the use of information and communications technologies shall
be covered by the relevant provisions of R.A. 10175 also known as the Cybercrime Prevention
‘Act of 2012. Therefore, the penalty to be imposed shall be one (1) degree higher than that
provided for in this Bill.


SEC. 7. Role of Food and Grocery Delivery Services Providers. - In case of violation of
this Act, the Service Provider shall reimburse the Delivery Riders for all amounts of money
advanced by the Delivery Riders resulting from the cancelled order, plus the delivery fee, within
‘twenty four (24) hours from the unlawful cancellation by way of bank deposit or such other
acceptable fund transfer mechanism. Violation of this role shall render the Food and Grocery
Services Provider liable to the Delivery Rider for a penalty of Five Thousand Pesos. This penalty
shall be in addition to whatever penalty to be imposed by the applicable regulatory agency.

SEC. 8, Mandatory requirement for proof of identity and residential address. ~ The
Food and Delivery Service Provider shall require its Customers, prior to registration with the
applicable mobile phone applications, internet webpages or similar platforms, to submit a valid
proof of identity and residential address or proof of billing. It shall likewise endeavor to verify the
identity of the customer through video call verification. Violation of this role shall render the Food
and Grocery Services provider liable for a fine of One Million Pesos per violation. This penalty
shall be in addition to whatever penalty to be imposed by the applicable regulatory agency.

The Food and Grocery Delivery Service Providers shall also be required to comply with the
pertinent provisions of the Data Privacy Act of 2012 before processing the personal information
of the Customers for their database. Any violation of the Data Privacy Act shall be dealt with by
the National Privacy Commission in its own instance.

SEC. 9. Separability Clause. - If any of the sections or provisions of this Act is held invalid, all
‘other provisions not affected thereby shall remain valid.

SEC. 10. Repealing Clause. - A\l laws, orders, issuances, rules and regulations or parts thereof
inconsistent with this Act are hereby repealed, amended, or modified accordingly.

SEC, 11. Effectivity. — This Act shall take effect fifteen (15) days after its publication in the
Official Gazette or in a newspaper of general circulation.

Approved,