S.

No, I6I8
H. No, 4730

Begun and held in Metro Manila, on Monday, the'^enty-seventh

day of July, two thousand fifteen.

[REPUBLIC ACT No. 10909 ]

A N ACT PROHIBITING BUSINESS ESTABLISHMENTS
F R O M GIVING INSUFFICIENT OR NO CHANGE TO
C O N S U M E R S A N DP R O V I D I N G P E N A L T I E S
THEREFOR

Be it enacted by the Senate and House of Representatives of the

Philippines in Congress assembled:

S E C T I O N l . Short Title. - T h i s A c t s h a l l b e k n o w n a s t h e
" N o S h o r t c h a n g i n g Act of 2016".

S E C . 2 . Declaration of Policy. - I t i s t h e p o l i c y o f t h e S t a t e
to protect the interest and promote the general welfare of the
c o n s u m e r as w e U as establish s t a n d a r d s of conduct for business
and industry. T o w a r d s this end, the State shall implement
m e a s u r e s to achieve the following objectives:
2

(a) P r o t e c t i o n o f c o n s u m e r s a g a i n s t deceptive, u n f a i r ( h ) Services

a n d unconscionable sales acts a n d practices; enable the supply
intellectual proper
(b) I n s t i t u t i o n a l i z a t i o n o f t h e i n d u s t r y practice o f g i v i n g
exact change to consumers of goods a n d services; ( i ) Shortch
change to a consu
(c) P r o v i s i o n o f i n f o r m a t i o n a n d e d u c a t i o n t o f a c i l i t a t e
s o u n d choice a n d t h e proper exercise of rights by t h e consumer; S E C . 4 . Re
business estabUsh
(d) P r o v i s i o n o f a d e q u a t e r i g h t s a n d m e a n s o f r e d r e s s f o r without waiting fo
consumers; and
(a) I n G e n e
(e) P r o v i s i o n o f p e n a l t i e s f o r o f f e n d e r s . establishment to s
only of a small a m o
S E C . 3 . Definition of Terms. - F o r t h e p u r p o s e o f t h i s a restriction for bus
Act, the followingterms shall m e a n ; ^ h a n the sufficient

( a ) Business establishment - any person, natural or (b) O t h e r P

juridical, w h e t h e r single proprietorship, partnership o r business establis
corporation, including a government-owned and -controlled give t h e change i n
corporation o r a government entity exercising itsproprietary to a s k t h e c o n s u m
functions, engaged in, or doing business i n the Philippines, either provisions of this A
i n selUng goods or p r o v i d i n g services; of s m a l l bills or co

( b ) Change - t h e e x c e s s i n t h e p a y m e n t g i v e n b y a (c)^*i?rice T
c o n s u m e r for goods a n d services purchased o r received f r o m a establishments to
business establishment; the exact retailpri
the taxes applicabl
( c ) Consumer - a n a t u r a l person w h o purchases goods estabUshments sh
or services i n cash; the establishment
taxes incorporated
( d ) Goods - a l l t y p e s o f t a n g i b l e p r o p e r t y t h a t c o u l d b e Tliis is to avoid m i
b o u g h t a n d sold, a n d t h e possession o f w h i c h could be t r a n s f e r r e d they have to pay fo
in whole or i n part, temporarily or permanently; exact change due

( e ) Gross sales - t h e t o t a l i n v o i c e v a l u e o f s a l e s , b e f o r e S E C . 5 . Pr
deducting for customer discount, allowances a n d returns; consumer shall w
Department of Tra
( 0 Insufficient change - a change t h a t i sless t h a n worldng days afte
w h a t is due the consumers;
(b) T h e D
( g ) Price - tag a n y d e v i c e w r i t t e n , p r i n t e d , a f f i x e d o r
days after the c
a t t a c h e d to a good, o rdisplayed i n a c o n s u m e r r e t a i l o r service
investigation, an
establishment for the purpose of indicating the retail price per
involved.
u n i t or services;
 (c) A f t e r a f u l l I n v e s t i g a t i o n s h a l l h a v e b e e n m a d e b y S E C . 9.
the D T I , i ts h a l l issue its decision a n d findings n o tlater t h a n part orprovisio
t h i r t y (30) d a y s f r o m t h e r e c e i p t o f t h e c o m p l a i n t . s h a l l n o t affect

(d) N o t h i n g h e r e i n s h a l l be c o n s t r u e d t o l i m i t o r i m p a i r S E C . 10
the rights and remedies of a consumer under any other law. orders, issuanc
are inconsistent
amended or mo
S E C . 6. Penalties. - A n y v i o l a t i o n o f t h i s A c t a s
determined by the D T I under Section 5 hereof shall be punished SEC. U
a s f o l l o w s : for t h e first o f f e n s e , a v i o l a t o r s h a l l b e fined five h u n d r e d (15) d a y s a f t e r i
p e s o s (P500.00) o r t h r e e p e r c e n t (3%) o f t h e g r o s s s a l e s o f t h e newspapers of
business establishment o n the d a yof the violation,whichever is
higher; f o r t h e second offense, a violator s h a l l be fined five Approv
t h o u s a n d p e s o s (P5,000.00) o r f i v e p e r c e n t (5%) o f t h e g r o s s s a l e s
of t h e business establishment o n t h e d a y o f t h e violation,
w h i c h e v e r is higher; for t h e t h i r d offense, a v i o l a t o r s h a l l be f i n e d
f i f t e e n t h o u s a n d p e s o s (P15,000.00) o r s e v e n p e r c e n t (7%) o f t h e
gross sales o f t h e business e s t a b l i s h m e n t o n t h e d a y o f t h e
v i o l a t i o n , w h i c h e v e r is h i g h e r , a n d t h e license t o operate o f t h e FELICIANO B
b u s i n e s s e s t a b h s h m e n t s h a l l b e s u s p e n d e d f o r t h r e e (3) m o n t h s ; Speaker
a n d f o r t h e f o u r t h offense, a v i o l a t o r s h a l l be f i n e d t w e n t y - f i v e of Rep
t h o u s a n d p e s o s (P25,000.00) o r t e n p e r c e n t (10%) o f t h e g r o s s
sales o f t h e business e s t a b l i s h m e n t o n t h e d a y o f t h e v i o l a t i o n ,
w h i c h e v e r is higher, a n d the license t o operate o f t h e business This
e s t a b U s h m e n t s h a l l be revoked. N o . 1618 a ^ d
Senate a n ^ t
I n addition to the a m o u n t o f the fine m e n t i o n e d above, a n d J u n e 6, 2
the total a m o u n t of change the estabUshment failed or refused to
give, a s d e t e r m i n e d f r o m t h ea u d i t o f t h e D T I , s h a l l be p a i d b y
the said estabUshment tothe complainant.

S E C . 7. Implementing Rules and Regulations. - T h e

D T I , i n c o n s u l t a t i o n w i t h t h e appropriate stalceholders a n d o t h e r Secret
g o v e r n m e n t a g e n c i e s , s h a l l , w i t l i i n o n e h u n d i - e d t w e n t y (120) d a y s House of
from t h e e f f e c t ! v i t y o f t l i i s A c t , p r o m u l g a t e t h e r u l e s a n d r e g u l a t i o n s
necessary t oeffectively i m p l e m e n t the provisions of this Act.
Approve
S E C 8. Information Campaign. - T h e D T I s h a l l
undertake to implement a neducation campaign t o inform
consumers of the provisions of this Act. I tshall regularly pubUsh
a list of the establishments found to have violated any provision
of tins Act.
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