NINETEENTH CONGRESS OF THE ) 
REPUBLIC OF THE PHILIPPINES ) 
First Regular Session 
)
of tl)c
‘22 JULll P6 48
SENATE
296
S. No.
RliCEiVEDBV;
Introduced by Senator FRANCIS G. ESCUDERO
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
EXPLANATORY NOTE
Consumer rights serve not only to protect citizens from unscrupulous practices 
of erring businesses, moreover it is our belief that strengthening these rights will also 
lead to more consumer confidence and thus more robust consumer spending —a 
prime driver of our economy.
In this regard, the use of credit cards by consumers has become wider over the 
years. However, this has not been without its challenges. In particular, it has been 
the practice of some merchandising stores and service establishments to charge a 
different, albeit higher price, for items bought using credit cards; or to limit bargain 
sale items and services to those made with cash purchases. This means that 
merchants are passing on the cost of processing fees charged to them by credit card 
companies to the consumers.
This not only burdens consumers, but in fact discriminates against those who 
cannot pay in cash upon purchase. But whether or not a consumer chooses to pay in 
cash or charge, he or she should only pay the price indicated in the price tag - no 
distinction should be made as to the mode of payment. Such is the right of the 
consumer.
This measure is thus being proposed to level the playing field. While we 
acknowledge the right of big businesses to take the necessary steps to ensure 
profitability, this should never be taken to mean that consumers shall bear the burden


of these enterprises in doing business. The consumer, as they say, is king. This 
measure intends to help big businesses understand and accept this fact.
In light of the foregoing, urgent passage of this bill is proposed.
FRANCIS G. ESCUDERO


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22
NINETEENTH CONGRESS OF THE ) 
REPUBLIC OF THE PHILIPPINES ) 
First Regular Session 
)
of fill'
■22 JI111 P6 48
SENATE
s. No. 296
RliCtIVtD Bf:___
Introduced by Senator FRANCIS G. ESCUDERO
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 the 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 (PIOO.OOO.OO) or both 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 15 days following its complete publication in 
the Official Gazette or at least two (2) newspapers of general circulation, whichever 
comes first.
Approved,