Republic of the Philippines
HOUSE OF REFRESENTATIVES
Quezon City, Metro Manila

snag: LBP
fed

NINETEENT 1 CONGRESS
First Regular Session

HOUSE BILL No. 3784

Introduced by Representative Ivan Howard A. Guintu

EXPLANATORY NOTE

Food, grocery and pharmacy delivery services facilitated through mobile phone
applications, internet websites and other similar platforms have become popular over the years

because of the convenience they offer to customers. One of the modes of payment for such

delivery service transactions is through cash paid upon by the customer to the delivery rider or
driver upon receipt of the item ordered. Under such an arrangement, the delivery rider would
initially pay for the item ordered by the customer and would eventually be reimbursed by the
customer upon delivery. Unfortunately, this arrangement makes delivery riders and drivers

vulnerable to fraudulent transactions.

Delivery riders and drivers lose money when they receive fake or hoax orders or when
customers cancel their orders even though the items ordered have already been paid by the
delivery riders or drivers. These fraudulent acts result in a waste of time, effort, and money on
the part of the delivery riders or drivers. Even worse, customers making fake or hoax orders
use fake names, contact numbers and/or addresses making it difficult for them to be traced and

held accountable for collection.

The rising number of reports or complaints from delivery riders and drivers who fell
victim to such fraudulent acts is very alarming and adequate protection to them must be
Provided. Thus, this proposed measure aims to ascertain whether the rights of the delivery
Fiders or drivers are respected and whether the obligations imposed to food, grocery and



Pharmacy delivery service providers are fulfilled. This bill mandates that the service providers
cannot require delivery riders or drivers to advance any monetary amount for the fulfillment of
orders, and in case of cancellation of confirraed orders, the service provider shall pay the
delivery riders or drivers for the service fee due them. It is the service provider which has the
duty to pursue claims for collection from its canceling customers, and must be responsible for
and in charge of the registration and verification of the identity of the customer. Further, for
better protection of the delivery riders or drivers, this measure includes prohibition against
cancellation of confirmed orders, placing of hoax orders, refusal to receive the unpaid orders,

and using another person’s personal information.

In view of the foregoing, the passage of this bill is earnestly sought.

A. GUINTU
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Republic of the Philippines
HOUSE OF REFRESENTATIVES
Quezon City, Metro Manila

NINETEENTH CONGRESS
First Regular Session

HOUSE BILL NO. 3784 “

Introduced by Representative Ivan Howard A. Guintu

AN ACT
PROVIDING MEASURES TO PROTECT INDIVIDUALS ENGAGED IN FOOD,
GROCERY AND PHARMACY DELIVERY SERVICES

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

SECTION 1. Short Title. ~ This Act shall be known as “Food, Grocery, and Pharmacy
Delivery Services Protection Act.”

SEC. 2, Definition of Terms. — For purposes of this Act, these terms are defined as
follows.

(a) Food, Grocery, and Pharmacy Delivery Service — a form of courier or delivery
service where a person through a mobile phone application, internet website or
any other similar platform orders food, grocery or pharmaceutical items from a
third-party seller and engages the service of a rider or driver for the delivery of
said order for a fee;

(b) Food, Grocery, and Pharmacy Delivery Service Providers or Service Providers
~ these are persons or entities who are engaged in the business of providing food,
grocery and pharmacy delivery services by way of mobile phone applications,
internet websites or other similar p‘atforms;

(©) Delivery Riders or Drivers ~ regavdiess of the existing contractual relationship
with the service providers, these are persons who perform the delivery services
by picking up the ordered items from the third-party seller, and delivering the
items to the customers who avail of the service;


(4) Confirmed Order ~ there shall be a confirmed order once the customer sends his
confirmation to the delivery or driver with respect to the order for the purchase of
food, grocery and/or pharmaceutical items.

SEC. 3. Prohibition Against Advance Payment, — It shall be prohibited for any food,
grocery, and pharmacy delivery service provider to require delivery riders or drivers to advance
any monetary amount for the fulfillment of or¢ers.

In case of cancellation of confirmed orders, the food, grocery, and pharmacy delivery
service provider shall still pay the delivery riders or drivers for the service fee due them as if
the trensaction was successful.

In turn, if shall be the duty of service providers to pursue claims for collection from its
cancelling customers,

Any investigation or inquiry conducted by the service providers on the propriety or
validity of the cancellation shall not affect the right of the riders/drivers to collect their
respective service fee as provided under this section.

Any food, grocery, and pharmacy delivery service provider who shall be found to be in
Violation of the prohibition on requiring monetary advances from delivery riders or drivers
shall, upon conviction, be subject to the penalty of arrest mayor and/or fine of an amount not
exceeding One hundred thousand pesos (P100,000.00) and the licenses and permits of said
violators shall be revoked. This is without prejudice to any other available remedies under
existing laws.

ifthe violation is committed by a corporation, partnership, association, or any other
Kind of business entity that may be created by operation of law, the penalty provided in the
ext preceding paragraph shall be imposed upon its president, director. partner ot any
responsible officer that authorized monetary advances to be required,

SEC. 4. Know-Your-Customer Rules for Food, Grocery and Pharmacy Delivery
‘Service, ~The service providers shall require its customers, prior to the registration with their
mobile phone applications, internet websites or other similar platforms, to submit a valid proof
of identity and residential address. Procedures for verification of identity shall likewise be
implemented by the service providers. The processing of personal information done in
accordance with this section shall be fully compliant with the requirements of Republic Act
No. 10173, or the “Data Privacy Act of 2012.”

SEC. 5. Prohibited Acts, —

(a) Using Another Person's Personal Information ~ \t shall be unlawful for any
person to use the personal information of another such as, but not limited to, name,


address, and contact number when registering for any food, grocery, and
pharmacy delivery service;

(©) Cancellation of Confirmed Orders ~ It shall be unlawful for any person to cancel
® confirmed order unless such option is specifically allowed by the food, grocery,

and pharmaey service hired;

(©) Placing of Hoax Order ~It shall be unlawful for any person to: (1) place an order
under the name of another unless the latter consented to the same; (2) place an
order using a fictitious name, address, ot both; and

(@) Refusal to Receive Unpaid Order ~ It shall be unlawful for any person to unjustly
refuse to receive an order when such order has been placed by him personally o
if the order is placed by virtue of ais authority.

Any person who shall commit any of the prohibited acts as provided for in this section
shall, upon conviction, be subject to the penalty of arresto mayor and/or fine of an amount not
exceeding One Hundred Thousand Pesos ((*100,000.00) without prejudice to any other
available remedies under existing laws.

SEC. 6. Separability Clause. — If, for any reason, any section, subsection, clause or
term of this Act is held invalid or unconstitutional, such parts not affected by such declaration
shall remain ir full force and effect.

SEC. 7. Repealing Clause. ~ All existing laws, orders, decrees, rules and regulations,
or parts thereof, inconsistent with the provisions of this Act are hereby amended, modified or
repealed accordingly.

SEC. 8. Effectivity, —This Act shall take effect fifteen (15) days after its publication in
the Official Gazette ot in a newspaper of generel circulation.

Approved,