Question & AnswerQ&A (Republic Act No. 10909)
The short title of Republic Act No. 10909 is the 'No Shortchanging Act of 2016.'
The policy is to protect the interests and promote the welfare of consumers by establishing standards of conduct for businesses, specifically requiring exact change to be given to consumers and providing penalties for violations.
A business establishment means any person, natural or juridical, including government-owned or controlled corporations, engaged in selling goods or providing services in the Philippines.
Insufficient change refers to giving consumers change that is less than what is due after a purchase.
Business establishments must give the exact change to consumers without waiting for them to ask, and they cannot give change in forms other than present currency or seek exemption from the law for reasons like nonavailability of small bills or coins.
Businesses should use price tags to indicate the exact retail price per unit or service, including taxes. They must also display signs or reflect the taxes in official receipts to prevent misleading consumers.
The consumer must submit a written complaint to the Department of Trade and Industry (DTI) within ten (10) working days after the violation. The DTI will investigate within ten (10) working days and issue its decision within thirty (30) days from receipt of the complaint.
Penalties escalate by offense: first offense—fine of ₱500 or 3% of gross sales; second offense—₱5,000 or 5% of gross sales; third offense—₱15,000 or 7% of gross sales plus 3 months suspension of license; fourth offense—₱25,000 or 10% of gross sales plus revocation of license to operate.
Yes. The Act explicitly states it is not a restriction to give an amount greater than the sufficient change, but shortchanging is unlawful.
The business establishment must pay the total amount of change they failed or refused to give to the complainant, as determined by DTI audit.