SIXTEENTH CONGRESS OF THE REPUBLIC 
OF THE PHILJI'PINES 
Second Regular Session 
SENATE 
S.B.NO. 2389 
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'14 SEP-3 P5:59 
IUX'Er\'EB BY' 
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Introduced by Senator Maria Lourdes Nancy S. Binay 
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\ AN ACT PROVIDING FOR AN ADDITIONAL CIRCUMSTANCE IN DETERMINING 
WHETHER A SALES ACT OR PRACTICE IS UNFAIR AND UNCONSCIONABLE 
AMENDING FOR THE PURPOSE ARTICLE 52 OF REPUBLIC ACT NO. 7394 OTHERWISE 
KNOWN AS THE CONSUMER ACT OF THE PHILIPPINES 
EXPLANATORY NOTE 
Article XVI Section 9 of the 1987 Philippine Constitution, provides: "The State shall protect 
consumers from trade malpractices and from substandard or hazardous products.". 
Merriam-Webster defines Shortchange as: to give less than the cOlTeet amount of change to; to 
deprive of or give less than something duel, Said definition clearly describes the situation of 
consumers who fail to obtain their exact change when buying consumer goods. 
The proposed bill safeguards the consumers in such situations and takes into consideration 
shortchanging as an additional circumstance in determining whether there is an unfair or 
unconscionable sales act or practice punishable under the Republic Act No. 7394 otherwise 
known as the Consumer Act of the Philippines. 
In view of the foregoing, the passage of this bill is earnestly recommended, 
Senator 
1 Meriam-Webster Websitei http://www.merriam-webster.com/dictionary /shortchange 
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SIXTEENTH CONGRESS OF THE REPUBLIC 
OF THE PHILIPPINES 
Second Regular Session 
SENATE 
S.B. NO. 2389 
) 
) 
) 
'14 
's'rmrh' 
<ti}lh;r llf tq" ~t"t"rrt.ZIf~ 
SEP -3 P5 :59 
, 
RECEIVED BY' ~ 
Introduced by Senator Maria Lourdes Nancy S. Binay > . 
,> 
'- U -
AN ACT PROVIDING fOR AN ADDITIONAL CIRCUMSTANCE IN DETERMINING 
WHETHER A SALES ACT OR PRACTICE IS UNFAIR AND UNCONSCIONABLE , 
AMENDING FOR THE PURPOSE ARTICLE 52 OF REPUBLIC ACT NO, 7394 OTHERWISE 
KNOWN AS THE CONSUMER ACT Of THE PHILIPPINES 
Be in enacted by the Senate and the House of Representatives of the Philippines in Congress 
assembled: 
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SECTIO'N I. Article 52 of the Republic Act No, 7394 is hereby amended by inserting a 
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new paragraph ( ) to read as follows: 
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"ART. 52, Unfair or Unconscionable Sales Act 01' Practice, -
An unfair or 
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reasonable sales act or practice by a seller or supplier in connection with a consumer 
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transaction violates this Chapter whether it occurs before, during or after the consumer 
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transaction, An act or practice shall be deemed unfair or unconscionable whenever the 
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producer, manufacturer, distributer, supplier or seller, by taking advantage of the 
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environment or surroundings, induces the consumer or gross one-sided in favor of the 
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producer, manufacturer, distributor, supplier or seller. 
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An act or practice shall be deemed unfair or unconscionable whenever the 
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producer, manufacturer, distributor, supplier or seller, by taking advantage of the 
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consumer's physical or mental infirmity, ignorance, illiteracy, lack of time, or the general 
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conditions of the environment or surroundings, induces the consumer to enter into a sales 
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or lease transaction grbssly inimical to the interests of the consumer or grossly one-sided 
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in favor of the producer, manufacturer, distributor, supplier or seller. 
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In determining whether an act or practice IS unfair and unconscionable, the 
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following circumstances shall be considered: 
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a) x x x; 
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x x x; 
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d) that when the consumer transaction was entered into, the seller or supplier was 
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aware that there was no reasonable probability or payment of the obligation in 
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full by the consumer; [and] 
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e) that the transaction that the seller or supplier induced the consumer to enter 
into was excessively one-sided in favor of the seller or supplier[.J; AND 
F) THAT THE CONSUMER TRANSACTION WAS DENIED BECAUSE OF 
AN ALLEGED SHORTAGE OF COINS OR CHANGE ON THE PART OF 
THE SELLER, OR THAT THE CONSUMER WAS SHORTCHANGED BY 
THE GIVING OF CANDIES OR OTHER ITEMS IN LIEU OF MONEY AS 
CHANGE OR WHEN DUE TO LACK OF TIME, THE CONSUMER 
ENTERS INTO TI-IE TRANSACTION EVEN IF IT IS TANTAMOUNT IN 
WAIVING THE CHANGE DUE. 
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SECTION 2. Implementing Rules Regulations. Within sixty (60) days from the approval 
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of this Act, the Secretary of the Department of Trade and Industry shall promulgate the necessary 
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rules and regulations to ensure the effective implementation of this Act. 
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SECTION 3. Separability Clause. If any section or provision of this Act is held 
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unconstitutional or invalid, the remaining parts or provisions not affected shall remain in full 
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force and effect. 
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SECTION 4. Repealing Clause. All laws, presidential decrees, executive orders, rules and 
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regulations or part thereof, contrary to or inconsistent with the provisions of this Act are hereby 
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repealed or modified accordingly 
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SECTION 5. Effectivity Clause. This Act shall take effect fifteen (15) days after its 
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complete publication in the Official Gazette or in any newspaper of general circulation. 
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Approved, 
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