Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

SEVENTEENTH CONGRESS
First Regular Session

3894

HOUSE BILL NO.

Introduced by REP. EVELINA G. ESCUDERO-

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.

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Republic of the Philippines
HOUSE OF REPRESENTATIVES,
Quezon C

SEVENTEENTH CONGRESS
First Regular Session

3894

HOUSE BILL NO.

Introduced by REP. EVELINA G. ESCUDERO-

AN ACT
PROHIBITING MERCHANDISING STORES AND RVICE 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
(P100.000.00) 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 at least two
(2) newspapers of general circulation.

Approved,