QuestionsQuestions (Republic Act No. 10909)
RA 10909 is known as the “No Shortchanging Act of 2016.” It prohibits business establishments from giving insufficient or no change to consumers and provides penalties to protect consumers and promote exact change practices.
The policy is to protect consumer interests and promote general welfare, including: (a) protection from deceptive/unfair/unconscionable sales acts; (b) institutionalization of giving exact change; (c) consumer information and education; (d) adequate rights and means of redress; and (e) penalties for offenders.
Any natural or juridical person, including single proprietorships, partnerships, corporations, government-owned and -controlled corporations, or government entities exercising proprietary functions, engaged in selling goods or providing services in the Philippines.
Change is the excess in payment given by a consumer for goods/services. Insufficient change is change that is less than what is due. Shortchange is the act of giving insufficient or no change to a consumer who purchased a product or service.
A natural person who purchases goods or services in cash.
No. The law states nothing is construed as a restriction for business establishments to give an amount greater than the sufficient change.
No. The establishment must give exact change to the consumer without waiting for the consumer to ask.
It is unlawful to (1) give change in any form other than the present currency, and (2) ask consumers for permission to be exempted from the Act, including for reasons such as nonavailability of small bills or coins.
When appropriate, establishments must use price tags indicating the exact retail price per unit/service that already includes applicable taxes. They must also put signs in conspicuous places or reflect the taxes incorporated in the official receipts, to avoid misleading consumers as to the exact price and change due.
(1) Consumer must submit a letter of complaint to DTI within ten (10) working days after the violation; (2) DTI must investigate and issue a notice to the establishment within not more than ten (10) working days after submission; (3) DTI must issue decision and findings not later than thirty (30) days from receipt of the complaint.
No. Nothing in the Act limits or impairs the rights and remedies of a consumer under any other law.
DTI determines violations after investigation. For each offense, penalties include fines based on either a fixed amount or a percentage of gross sales on the day of violation—whichever is higher. Additionally, the establishment must pay the complainant the total amount of change it failed or refused to give, based on the DTI audit.
First: P500 or 3% of gross sales, whichever is higher. Second: P5,000 or 5% of gross sales, whichever is higher. Third: P15,000 or 7% of gross sales, whichever is higher, plus suspension of the license to operate for three (3) months. Fourth: P25,000 or 10% of gross sales, whichever is higher, plus revocation of the license to operate.
DTI investigates complaints, issues notices, makes decisions and findings, and determines violations for penalties. It must promulgate implementing rules within 120 days from the effectivity of the Act.
DTI must implement an education campaign to inform consumers of the Act’s provisions and regularly publish a list of establishments found to have violated the Act.
It takes effect fifteen (15) days after its publication in the Official Gazette or in two (2) newspapers of general circulation.
It contains a separability clause stating that if any part is declared invalid, the rest remains effective. It also has a repealing clause that repeals/amends provisions inconsistent with the Act.