‘SIXTEENTH CONGRESS OF THE) one ae per
REPUBLIC OF THE PHILIPPINES) | me to ered .
First Regular Session )
HOUSE OF REPRESENTATIVES \
HB.No.__2606

INTRODUCED BY HONORABLE MARK A. VILLAR

EXPLANATORY NOTE
The Constitution, Article 16, provides:

Section 9. The State shall protect consumers from trade
malpractices and from substandard or hazardous practices.

R.A. No. 7394, also known as the “Consumer Act of the Philippines" was
enacted to protect the interest of the consumers, promote their general welfare and
to establish standards of conduct for business and industry.

These laws recognize that consumers play a key role in the Philippine
economy. Hence, they seek to protect the rights of consumers and to put a stop to
abusive practices of business establishments in the country.

The practice of giving insufficient change or giving no change at all to
consumers by product sellers or service providers is something that is often taken for
granted. This is usually because the change involves only a matter of five, ten,
fifteen, or twenty centavos, or small bills, which when added up at the end of the day,
amount to thousands of pesos.

The failure to give the change or the exact change constitutes a trade
malpractice that must be stopped.

This bill seeks to: (a) prohibit the giving of insufficient change or no change at
all to consumers; (b) to prohibit the giving of change in any form other than money;
(c) require the posting of signs reminding consumers to ask for their exact change;
and (d) require the use of price tags, when appropriate, that will reflect the exact
retail price per unit or services, already incorporating the applicable tax or taxes.

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MARK A. VILLAR


SIXTEENTH CONGRESS OF THE)
REPUBLIC OF THE PHILIPPINES)
First Regular Session )

HOUSE OF REPRESENTATIVES

HBNo___3606

INTRODUCED BY HONORABLE MARK A. VILLAR

AN ACT REQUIRING BUSINESS ESTABLISHMENTS
TO GIVE EXACT CHANGE TO CONSUMERS

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 the "Exact Change
Act."

SECTION 2. Declaration of Policy. - It is the policy of the: State to protect the
interests of the consumer, promote his general welfare and to establish standards of
conduct for business and industry. Towards this end, the state shall implement
measures to achieve the following objectives:

A) Protection against deceptive, unfair and unconscionable sales acts and
practices;

B) Provision of information and education to facilitate sound choice and the
proper exercise of rights by the consumer,

C) Provision of adequate rights and means of redress; and

D) Provision of penalties for offenders.

SECTION 3. Definition of Terms.—

A) "Department" means the Department of Trade and Industry;

B) “Consumer” means a natural person who is a purchaser or recipient of
consumer products, services, or credit;

C) “Business Establishment” means any person or entity, whether single
proprietorship, partnership, or corporation, including government-owned
and controlled corporations or a government entity exercising its
proprietary functions, engaged in, or doing business in the Philippines,
either in selling products or providing services;


D) "Consumer Products and Services” means goods, services and credits,
debts or obligations which are primarily for personal, family, household or
agricultural purposes, which shall include but is not limited to food, drugs,
cosmetics, and devices;

E) "Services" means services that are subject of a consumer transaction,
either together with, or separate from, any kind of personal property,
whether tangible or intangible;

F) “Price Tag" means any device, written, printed, affixed or attached to a
consumer product or displayed in a consumer retail or service
establishment for the purpose of indicating the retail price per unit or
service;

G) "Change" means the excess in the payment given by a consumer for
products or services purchased or received; and

H) “Insufficient Change" means a change that is less than what is due the
consumer,

SECTION 4. Regulated Acts.-- (A) In General -- It shall be unlawful; for any
business establishment to give insufficient change or no change at all to consumers
who purchased or received products or services, even if such change is only of a
small amount. 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.

(8) Other Prohibitions -- It shall also be unlawful for any business establishment
which sells products or provides services to give the change in any other form other
than the present currency or to ask the consumer for permission to be exempted
from the provisions of this Act for any reason including the non-availability of small
bills or coins.

(C) Posting of Signs -- It shall be the duty of business establishments to put signs in
every counter which states: "Demand Your Exact Change."

(D) 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 establishment or
reflect in the official receipts issued, the taxes incorporated in the retail price per unit
or services. This is to avoid misleading the consumer as to the exact price they have
to pay for the goods or services and consequently, the exact change due to them.

SECTION 5. Procedures in Filing a Complaint. -- A) Not later than ten (10)
working days after a violation has been committed, the consumer shall write and
submit a letter of complaint to the Department.


B) The Department shall, in not more than ten (10) working days after the complaint
has been submitted, conduct an investigation and shall issue a notice to the
establishment involved.

C) After a full investigation shall have been made by the Department, it shall issue its
decision and findings not later than thirty (30) days from the receipt of the complaint.

SECTION 6. Information Campaign. - The Department shall undertake to
implement an education campaign to inform consumers of the provisions of this Act.
It shall regularly publish a list of the establishments found to have violated any
provisions of this Act.

SECTION 7. Rules and Regulations. - It ‘shall be the duty of the Department,
in coordination with other executive departments or government agencies which may
be involved, to formulate and issue the necessary rules and regulations to implement
the provisions of this Act.

SECTION 8. Penalties. -- Any violation of this Act shall be punished as
follows: For the first offense, a violator shall be fined Five Hundred pesos (P 500,00);
for the second offense, a violator shall be fined Five Thousand pesos (P 5,000.00);
for the Third offense, a violator shall be fined Fifteen Thousand pesos (P 15,000.00)
and the license to operate the business establishment shall be suspended for three
months; and for the fourth offense, a violator shall be fined Twenty-five Thousand
pesos (P25,000.00) and the license to operate shall be revoked.

SECTION 9. Separability Clause. - If any provision, or part hereof, is held
invalid or unconstitutional, the remainder of the law or the provision not otherwise
affected shall remain valid and subsisting

SECTION 10. Repealing Clause .- Any law, presidential decree or issuance,
executive order, letter of instruction, administrative order, rule or regulation contrary
to or inconsistent with, the provisions of this Act is hereby repealed, modified or
amended accordingly.

SECTION 11. Effectivity Clause.- This Act shall take effect fifteen (15) days
after its publication in at least two (2) newspapers of general circulation.

Approved,