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Republic of the Philippines
HOUSE OF REPRESENTATIVES.

Quezon City, Metro Manila REGRIEBS

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SEVENTEENTH CONGRESS \ Jin
t Regular Session \, BY >

House Bill no 4563 &

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Introduced by Representative GERALDINE B. ROMAN

EXPLANATORY NOTE

Trust is an essential component of making sure that the economy continues to be
robust. All businesses — especially the Micro, Small, and Medium Enterprises (MSMEs)
— rely on trust in order to ensure that their activities remain both profitable and above
board. The interaction between consumers and the business owners/managers is founded
upon the main presumption of regularity and pricing standards. Without this, trust
erodes and business opportunities fail.

Itis thus distressing to note that there have been reports which indicate that some
of the country’s MSME outlets have been engaging in unscrupulous practices. These
include price adjustments depending on the impression of the consumer on the
vendor/manager, Specifically, when the consumer looks economically better, as if by
some sheer inexplicable force, the prices move up. When the consumer does not look
like such, by the same inexplicable force, prices move back down. This is very rampant
especially on neighborhood variety stores called Sari-Sari Stores and in the public
markets of every municipality and city in our country.

This matter could be resolved easily if all MSMEs are obligated to display a
standardized pr of all the goods and services being offered shall be
disclosed to the consumer, thereby removing any chance for any unscrupulous behavior
on the part of the vendor/manager insofar as this matter is concerned. With this measure,
it is hoped that the erosion of trust — which must be avoided at all costs ~ will be
prevented, and customer loyalty and business negotiations will always flourish.

For these reasons, passage of this bill is earnestly sought.

na
GERALD! B. ROMAN


Republic of the Philippines
HOUSE OF REPRESENTATIVES

4563

House Bill No.

Introduced by Representative GERALDINE B. ROMAN

AN ACT
REQUIRING ALL MICRO, SMALL, AND MEDIUM ENTERPRISES (MSMEs)
TO PROVIDE CONSUMERS WITH A STANDARDIZED LIST OF THE
PRICES OF THE GOODS OR SERVICES BEING SOLD IN THEIR OUTLETS

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

Section 1. Short Title — This Act shall be known as the the “MSMEs Price
Disclosure Act of 2016.”

Section 2. Declaration of Policy ~ It shall be the policy of the State to protect
consumers from all kinds of unscrupulous behavior from all commercial establishments

big and small, The State recognizes that trust is an essential component for the smooth
and continuous operations of the economy — especially at the micro, small, and medium
scale, The State shall therefore undertake measures which shall secure the trust and
confidence of the consumers in the commercial system of the country.

Section 3. Definition of MSMEs. ~ Micro Enterprises are those with asset size of
around P3,000,000.00 or less and has around 1-9 employees. Small Enterprises are those
with asse of around P3,000,000.00 to P15,000,000.00 and has around 10-99
employees. Medium Enterprises are those with asset size of P15,000,000.00 to
P100,000,000.00 and with 100-199 employees.

Section 4, Obligation to Display Price Lists - MSMEs are hereby obligated to
make a price list of the goods being sold in their outlets. MSMEs are disallowed to
charge prices which are different from the list provided by them. The list shall be
displayed at a very visible area where the consumer is able to see the matrix without the
need of directly inquiring,



Seetion 5. Penalties ~ Any person who shall violate the provisions of this Act or
its Implementing Rules and Regulations shall be subjected to a fine of not less than five
thousand pesos (PHP 5,000.00), but not more than twenty five thousand pesos (PHP
25,000.00) for cach instance of violation:

Section 6. Implementing Agency ~The Department of Trade and Industry shall
enforce the provisions of this Act, as well as its Implementing Rules and Regulations.

Section 7. Implementing Rules and Regulations ~ The Department of Trade and
Industry, in close coordination with the Department of the Interior and Local
Government, shall have responsibility over the formulation of the Implementing Rules
and Regulations necessary for the effective enforcement of the provisions of this Act.
The Implementing Rules and Regulations shall be crafted within ninety (90) days from
the effectivity of this Act.

Section 8. Repealing Clause — All laws, presidential decrees, executive orders,
rules and regulations, and parts thereof which are inconsistent with the provisions of this
Act are hereby repealed or modified accordingly.

Section 9. Separability Clause ~ If, for any reason, any section or provision of
this Act, or any portion thereof, or the application of such section, provision, or portion
to any person, group, or circumstance is declared invalid or unconstitutional, the
remainder of this Act or the application of such section, provision, or portion thereof to
other persons, groups, or circumstances shall not be affected by such declaration.

Section 10. Effectivity — This Act shall take effect fifteen (15) days following its
publication in three (3) newspapers of general circulation.

Approved,