Question & AnswerQ&A (DTI DEPARTMENT ADMINISTRATIVE ORDER NO. 7, S. 1999)
The Order is referred to as the "Schedule of Fines."
It covers administrative fines relative to R.A. 7394 (Consumer Act of the Philippines), R.A. 7581 (Price Act), and E.O. 913 specifically on R.A. No. 71 (Price Tag Law), Act No. 3883 (Business Name Law), Act No. 2728 (Law on Brokerage), R.A. 3952 (Bulk Sales Law), and Act No. 3893 (Bonded Warehouse Act).
The fine shall be not less than Five Hundred (P500.00) pesos nor more than Three Hundred Thousand (P300,000.00) pesos, depending on the gravity of the offense, plus an additional fine of not more than One Thousand (P1,000.00) pesos for each day of continuing violation.
There is a schedule based on the violator's category (retailer, wholesaler, manufacturer), with basic fines ranging from P500 to P2,000 and corresponding minimum, medium, and maximum fines increasing with the category and severity of the violation.
An administrative fine of not less than One Thousand (P1,000.00) pesos nor more than One Million (P1,000,000.00) pesos shall be imposed for violations of the Price Act.
The activity to which a higher penalty corresponds shall be the basis in imposing the appropriate fine.
Mitigating circumstances include voluntary admission of guilt, willingness to enter into compromise agreement, furnishing evidence, executing an undertaking to cease violations, good faith, compliance with preventive closure measures, and any analogous circumstance.
Examples include second or more offense, multiple violations at one instance, violation during ongoing proceedings, deceit or misrepresentation, falsification of documents, refusal to issue receipts, unjustified absence at mediation, non-compliance with agreements or lawful orders, use of force or intimidation, bribery, concealment of evidence, unauthorized trade business, and others listed in the Order.
Alternative circumstances may be either mitigating or aggravating and include first offense involving small quantity, quantity/volume of goods involved, nature of goods (basic or luxury), degree of education of violator, and capitalization of the entity.
Fines may be paid in installments not exceeding 12 months, provided an undertaking specifying due dates for each installment is submitted.
Depending on circumstances, penalties such as closure, confiscation, and suspension may be imposed. The respondent may alternatively pay a fine in excess of the maximum prescribed to avoid these other penalties.
If no mitigating or aggravating circumstances exist, a medium fine is imposed; with only mitigating circumstances, a minimum fine is imposed; with only aggravating circumstances, a maximum fine is imposed; if both circumstances exist, offsetting rules apply and then the appropriate fine is imposed.
It takes effect fifteen (15) days following the completion of its publication either in the Official Gazette or in a newspaper of general circulation.