Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

FIFTEENTH CONGRESS
First Regular Session

House Biil'no._779
Introduced by HONORABLE EDCEL C. LAGMAN

EXPLANATORY NOTE

This bill seeks to penalize merchandizing stores and service establishments
that set higher prices for goods and services purchased with the use of credit
cards than for those purchased with cash, and/or limit bargain sale items and
services to cash purchases.

In the current globalized economy, the use of credit cards has reached such
unprecedented patronage that almost every Filipino of middle class status
possesses one. Whether one is constrained to obtain a credit card only for
emergencies or for his daily transactions is immaterial. What matters is that the
Filipino customer eventually pays with his or her hard-earned money for the
goods and services he or she purchases through credit cards. Credit card holders
who are already weighed down by interest charges and the even more onerous
late financial charges should not be made to pay a price higher than the actual
cash retail price.

Many holders of credit cards are already trapped in an almost bottomless pit
from which they hardly extricate themselves. Charging them higher prices when
they use their credit cards to buy life’s necessities is a double whammy that will
irretrievably push them deeper in the hole.

Accordingly, approval of this measure is urgently requested.

ELC. LA


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

FIFTEENTH CONGRESS
First Regular Session
770

HOUSE BILL NO..

Introduced by HONORABLE EDCEL C. LAGMAN

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 THEREOF

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

SECTION 1. It shall be unlawful for any merchandising store or service
establishment 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 and/or to limit bargain sale items and services to cash purchases.

SEC. 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 of not less than Twenty thousand pesos (P20,000.00) but not
more than One hundred thousand pesos (P100,000.00) or both such imprisonment
and fine at the discretion of the court. In case of a partnership, association,
Corporation or any other juridical person, the penalty shall be imposed on the
president, treasurer or any other officer or person responsible for the violation. In
addition, the license to operate the business establishment shall be suspended for
six (6) months or in the case of recidivism, cancelled, as the case may be. If the
offender is an alien, he shall, after service of sentence, be deported immediately
without further proceedings in the Bureau of Immigration.

SEC. 3. This Act shall take effect fifteen (15) days after its publication in at
least two (2) newspapers of general circulation.

Approved.