lath CONGRESS OF THE REPUBLIC ) 
OF THE PHILIPPINES 
1 
First Regular Session 
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Introduced by Senator Ralph G. Recto 
EXPLANATORY NOTE 
This bill upholds the right of a consumer to seek redress -- to be 
compensated for misrepresentation, shoddy goods or unsatisfactory services by 
requiring business establishments nationwide to set up consumer welfare desks 
(CWDs) and develop a comprehensive complaints-handling program. 
The objective of this bill is to encourage the consumers to assert such a 
right and for the business sector to build consumer patronage by being 
responsive to the needs of the buying public. 
The Department of Trade and Industry (DTI) reports that consumer 
complaints are growing fast, from 2,593 complaints in 1995 to 24,371 in 2000. This 
implies that consumers are becoming increasingly aware of their rights for redress 
and to seek intervention. Among the most popular complaints in 2000 pertained 
to consumer products and services warranties (5,297); service and repair shops 
(3,757) and product quality and safety (3,682). 
According to DTI], one proven strong selling point to attract and keep 
satisfied and loyal clientele is making prospective customers aware that a firm 
has set up a pro-active CWD. The agency further said that reputable firms attest 
to the fact that consumers who complained about their problem and received 
satisfactory results exhibited the highest degree of continued patronage. 
Business establishments should view consumer complaints positively, 
as early warning signs that the business may be violating some fair trade laws. 
The DTI stressed that it would provide firms an excellent opportunity to correct 
the problem as soon as it crops up. In lieu of market surveys which are costly, 
information gathered thru CWDs can help evaluate the quality of the firm's 
products as well as the kind of service and public relations of its personnel. 
Indeed, the institutionalization of CWDs will be a milestone in consumer 
advocacy in the country. 
' http://www.dticebu.net.ph/09_g_04. 
htm 


13th CONGRESS OF THE REPUBLIC 
1 
OF THE PHILIPPINES 
1 
First Regular Session 
1 
S E N A T E  
S. BILL NO. 
Introduced bv Senator Rabh G. Recto 
AN ACT 
REQUIRING BUSINESS ESTABLISHMENTS NATIONWIDE TO SET UP CONSUMER 
HANDLING PROGRAM 
WELFARE DESKS (CWDS) AND DEVELOP COMPREHENSIVE COMPLAINTS- 
Be it enacted by the Senate and House of Representatives of the 
Philippines in Congress assembled: 
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SECTION 1. Declaration of Poljcy. - It is hereby declared a policy of 
the State to recognize the right of consumers for redress, which is the right 
to be compensated for misrepresentation, shoddy goods or unsatisfactory 
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services. Towards this end, the State shall encourage the consumers to 
assert such a right and for the business sector to build consumer 
patronage by being responsive to the needs of the buying public. 
SEC. 
2. 
Consumer 'Welfare Desks 
(CWDs). - All business 
establishments nationwide shall set up CWDs to receive, record, resolve 
consumer complaints pertaining to their products and/or services which 
include, but not limited to, defective products, price discrepancies, 
labeling, packaging, and "no return, no exchange" policy. 
SEC. 
3. Comprehensive complaints-handling 
program. - All 
establishments covered under this Act shall: 


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Provide specific guidelines to employees assigned to man 
the CWDs and define how much discretion they can 
exercise for specific cases: 
Ensure that consumers are not referred from one person to 
another: 
Provide standardized complaints form to ensure that all 
necessary information are elicited from the complainant, 
whether complaints are by mail, telephone or walk-in; 
If necessary, conduct training seminars to improve staff 
skills in handling complaints and to encourage them to 
handle complaints courteously and fairly: 
Monitor the procedure to find out how effectively the 
system works: 
Announce or post signs to the public the availability of a 
CWD in the establishment; 
Place the CWD in a conspicuous place; 
Make the procedure simple, clear, and convenient; 
Assure the customer that complaints are accepted during 
business hours, whether complaints are filed personally or 
by phone. 
Make sure supervisors are available at all times to handle 
complaints outside the CWD's jurisdiction; 
Give the consumer an opportunity to present his/her side; 
Endeavor to resolve complaints as fast as possible; 


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SEC. 4. fmplemenfiflg Rules and Regulafions. - The DTI and other 
appropriate government agencies shall promulgate rules and regulations 
necessary for the effective implementation of this Act. 
SEC. 5. Repealing Clause. - 
All other laws, decrees, orders, 
issuances and rules and regulations or parts thereof inconsistent with this 
Act are hereby amended or repealed accordingly. 
SEC. 6. Separability Clause. - The provisions of this Act are hereby 
declared to be separable and, in the event any of such provisions is 
declared unconstitutional, the order provision which is not affected 
thereby shall remain in full force and effect. 
SEC. 7. Effecfivify. - This Act shall take effect fifteen (15) days after its 
complete publication in at least two (2) newspapers of general 
circulation. 
Approved,