JUNE 24, 2016

NR # 4241

Exact Change Act awaits PNoys signature

A measure requiring business establishments to give exact change to consumers
now awaits President Aquinos signature for enactment into law.
The proposed Exact Change Act was referred to the President for approval and
signature after the House of Representatives ratified the Conference Committee Report of
House Bill 4730 last June 6 and Senate Bill 1618 on May 23, 2016.
The measure shall strengthen the protection of consumers specifically in the
purchase of commodities or goods for sale or availment of services.
The bill affirms the policy of the State to protect the interest and promote the
general welfare of the consumer as well as establish standards of conduct for business and
industry.
The measure declares it unlawful for any business establishment to give insufficient
change or no change at all to consumers who purchased or received products or services,
even if such change is only of small amount.
It prohibits any business establishment to give the change in any other form other
than the present currency or to ask the consumer for permission to be exempted from the
provisions of the proposed Act for any reason including the non-availability of small bills
or coins.
The bill also requires business establishments to put signs in every counter, which
states Demand your Exact Change.
The business establishments are required to use price tags, when appropriate,
indicating the exact retail price per unit or service which already includes the taxes
applicable to the goods or services being offered.
To avoid misleading the consumer as to the exact price they have to pay for the
goods or services, establishments shall put signs in conspicuous places within the
establishments or reflect in the official receipts issued, the taxes incorporated in the retail
price per unit or services.
The measure provides the proper procedures in the filing of a complaint by a
consumer.
The consumer shall write and submit a letter of complaint to the DTI not later than
10 working days after a violation has been committed.

In not more than 10 working days after the complaint has been submitted, the DTI
shall conduct an investigation, and issue a notice to the establishment involved.
After a full investigation have been made, the DTI shall issue its decision and
findings not later than 30 days from the receipt of the complaint.
Any violation of the proposed Act shall be penalized with a P500 fine or three
percent of the gross sales of the business establishment on the day of the violation,
whichever is higher for the first offense; P5,000 fine or five percent of the gross sales of
the business establishment on the day of the violation, whichever is higher for the second
offense; P15,000 fine or seven percent of the gross sales of the business establishment on
the day of the violation, whichever is higher, and the suspension for three months of the
license to operate of the business establishment for the third offense; and, P25,000 fine or
ten percent of the gross sales of the business establishment on the day of the violation,
whichever is higher, and the revocation of the license to operate of the business
establishment for the fourth offense.
Further, the measure mandates the Department of Trade and Industry (DTI) to
undertake an education campaign to inform consumers of the provision of the proposed
Act and to regularly publish a list of the establishments found to have violated such
provisions.
The DTI, in consultation with the appropriate stakeholders and other government
agencies shall promulgate the rules and regulations necessary to effectively implement the
provisions of the proposed Act.
Authors of the measure are Reps. Mark A. Villar, Cesar V. Sarmiento, Anthony G.
Del Rosario, George P. Arnaiz, Enrique T. Garcia Jr., Rene L. Relampagos, Gustavo S.
Tambunting, Paolo S. Javier, Dakila Carlo E. Cua, , Dan S. Fernandez, Jerry P. Treas,
Romero Federico S. Quimbo, Emi G. Calixto-Rubiano, Jesus N. Sacdalan, Maria Carmen
S. Zamora, Ben Evardone, Eric Singson, Rommel C. Amatong, Doy C. Leachon, Arcadio
H. Gorriceta, Francis Gerald A. Abaya, Jose Christopher Y. Belmonte, Oscar Garin, Jr,
Enrique M. Cojuangco, Pryde Henry A. Teves, Joel Roy R. Duavit, Mercedes K. Alvarez,
Sherwin T. Gatchalian, Mark Llandro L. Mendoza, Wilfrido Mark M. Enverga, Franz E.
Alvarez, Evelyn P. Mellana, Damian G. Mercado, Catherine Barcelona-Reyes, Raneo E.
Abu, Ronald V. Singson, Eric L. Olivarez, Ma, Lourdes Acosta-Alba, Herminia B. Roman,
Edgardo R. Masongsong, Teodorico T. Haresco, Jr., Ma. Theresa B. Bonoan, Arnel U. Ty,
Carlos Isagani T. Zarate, Seth Frederick P. Jalosjos, Gloria Macapagal-Arroyo, Julieta R.
Cortuna, Jonathan A. Dela Cruz, Sharon S. Garin, and Terry L. Ridon. (30) jc