SIXTEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
First Regular Session 
) 
) 
) 
SENATE 
S. B. No.1083 
Introduced by Senator FRANCIS G. ESCUDERO 
EXPLANATORY NOTE 
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JUL 23 P 1 :34 
ConsUmer'rights serve not ohly to protect citizens from unscrupulous practices of erring 
businesses, moreover it is our belief that strengthening these rights will also lead to more 
consumer contidence 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 


SIXTEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
First Regular Session 
) 
) 
) 
SENATE 
'13 
JUL 23 P 1 :34 
S.B.No.1083 
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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 PENAL TIES FOR ANY VIOLATION THEREOF 
Be it enacted by the Senate and the House of Representatives of the Philippines in 
Congress assembled: 
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SECTION 1. It shall be unlawful for any merchandising store or service establishment 
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to charge the customers more than the actual cash retail price of the goods and services 
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purchased when such purchase is done with the use of a credit card and/or to limit bargain sale 
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items and services to cash purchases, 
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SEC. 2. Any person who shall violate the provision of this Act shall be punished with 
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imprisomnent of not less than six (6) months but not more than one (1) year or a fine of not less 
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than Twenty Thousand Pesos (P20,000.00) but not more than One Hundred Thousand Pesos 
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(PI00,000.00) or both at the discretion of the court. In case of a partnership, association, 
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corporation or any other juridical person, the penalty shall be imposed on the president, treasurer 
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or any other officer or person responsible for the violation. In addition, the license to operate the 
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business establishment shall be suspended for six (6) months or in the case of recidivism, 
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cancelled, as the case may be. If the offender is an alien, he shall, after service of sentence, be 
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deported immediately without further proceedings in the Bureau of Immigration. 
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SEC. 3. This Act shall take effect 15 days following its complete publication in at least 
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two (2) newspapers of general circulation. 
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Approved, 
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