Legal basis, coverage, and relation to prior DAOs
- The Order is anchored on the need to provide consumers access to redress under Title V, Chapter III, Article 159 of Republic Act No. 7394 (the Consumer Act of the Philippines).
- The Order applies solely to consumer complaints under Republic Act No. 7394, Title V, Chapter III, Article 159.
- The Order modifies/amends/repeals certain provisions of DAO No. 05, s. 2007 and DAO No. 07, s. 2006 for consumer-complaint processing.
- DAO No. 05, s. 2007 and DAO No. 07, s. 2006 continue to be applicable to DTI formal charges for violations of other trade and industry laws, including Republic Act No. 7581 (the Price Act) and its IRR under DAO No. 07, s. 2006.
- The Order continues the simplified framework by addressing mediation and adjudication timelines and specific procedural rules.
Policy and purpose statement
- The DTI must assure, as far as practicable, simple and easy access for consumers to seek redress for complaints and grievances under Republic Act No. 7394, Title V, Chapter III, Article 159.
Scope and what it covers
- The Order covers consumer complaints filed for violations actionable under Republic Act No. 7394, Title V, Chapter III, Article 159.
- The Order covers the mediation stage and the adjudication stage for covered consumer complaints.
- The Order does not govern DTI formal charges for violations of other trade and industry laws, including Republic Act No. 7581 and its IRR under DAO No. 07, s. 2006, for which the earlier DAOs remain applicable.
Mandatory mediation procedure and rules
- Rule II, Section 1 requires the DTI to issue immediately on the day a consumer complaint is received a written Notice of Mediation (Annex “A”) stating the date, time, and place of the mediation conference and serving notices to all Parties.
- Rule II, Section 1 requires service of the Notice of Mediation through courier, personal delivery, or postal services with proof of service and receipt.
- Rule II, Section 1 requires recording and updating all actions, information, and proof of service and receipt in the DTI Customer Relationship Management (CRM) System, specifically in its Action Module.
- Rule II, Section 1 defines DTI CRM as a browser-based application that systematizes document flow for records, tracks records and current user, provides descriptive details and status of all consumer complaint documents, and provides up-to-date and accurate document information.
- Rule II, Section 2 makes mediation mandatory, meaning a complaint shall not be submitted for arbitration without passing the mediation stage.
- Rule II, Section 2 allows more than one conference to be scheduled from receipt of the consumer complaint by the DTI.
- Rule II, Section 3(a) requires that when mediation is successful, a Mediation Agreement (Annex “B”) be immediately prepared and executed by the parties, and it is final and executory.
- Rule II, Section 3(b) requires immediate Notice of Failure of Mediation (Annex “C”) when no settlement is reached, or when the party complained of or the party complained of’s duly authorized representative fails or refuses to appear or participate; the Mediation Officer then submits the case for adjudication.
- Rule II, Section 3(b) requires dismissal without prejudice and archiving when the consumer complainant or the consumer complainant’s duly authorized representative fails or refuses to appear or participate in the scheduled mediation.
- Rule II, Section 4 limits the total mediation period to ten (10) working days from receipt of the complaint.
Adjudication stage: notice, submissions, decision
- Rule III, Section 1 requires that on the day the Failure of Mediation is received, the Adjudication Officer shall immediately issue a Notice of Adjudication (Annex “D”).
- Rule III, Section 1 directs both parties to simultaneously submit their respective position papers containing statement of facts, arguments, supporting affidavits, and other documentary evidence within five (5) working days from receipt of the Notice of Adjudication and/or setting date(s) of hearing, if necessary.
- Rule III, Section 1 requires that the Notice of Adjudication, which is equivalent to a summons and/or dates of hearing, be served through courier, personal delivery, or postal services with proof of service and receipt.
- Rule III, Section 1 requires updating and recording all actions, information, and proof of service and receipt in the DTI CRM System, specifically in its Action Module.
- Rule III, Section 2 provides that if, despite notice, no position paper is submitted by either party within the stated period, the Adjudication Officer issues an Order declaring that either party has waived the right to file a position paper and submits the case for decision based on the documents or evidence available on record.
- Rule III, Section 3(a) requires the Adjudication Officer to review, assess, and render a written Decision (as shown in Annex “E”).
- Rule III, Section 3(a) requires the Decision to be clear and concise and to contain: (a) relevant facts; (b) issues involved; (c) applicable law and/or jurisprudence; (d) conclusions and reasons; and (e) relief(s) granted, if any, and the administrative penalty/ies imposed, if any.
- Rule III, Section 3(b) requires service of the Decision by personal service or registered mail with proof of service through post registry return card.
- Rule III, Section 4 limits the total adjudication period to twenty (20) working days from receipt of the Failure of Mediation.
Timelines, postponement limits
- Rule IV, Section 1 limits the combined total mediation and adjudication periods to thirty (30) working days.
- Rule V, Section 1 allows postponement for valid reasons in addition to the Rule IV timeline, for a total postponement of not more than five (5) working days.
Waiver, dismissal, and administrative consequences
- When no settlement is reached or a party complained of fails/refuses to appear or participate, the Mediation Officer issues Notice of Failure of Mediation and submits the case for adjudication.
- When the consumer complainant fails/refuses to appear or participate, the Mediation Officer dismisses the complaint without prejudice and archives the case.
- When despite notice a party fails to submit a position paper within the period, an Order is issued declaring waiver and the case proceeds for decision based on available record evidence.
- The Decision must include any administrative penalty/ies imposed, if any.
Repeal, separability, and effect of invalid provisions
- Rule VI, Section 1 repeals or modifies/amends all other provisions of DAO No. 05, s. 2007, DAO No. 07, s. 2006, and other DAOs/Department Orders/issuances (or portions thereof) that are inconsistent with this Order.
- Rule VI, Section 2 provides separability: if any section, provision, part, or application is declared invalid or unconstitutional, the remainder of the Order remains effective.
- Rule VI, Section 3 sets the effectivity rule at fifteen (15) days after publication and requires transmittal to the National Administrative Register at the University of the Philippines Law Center and the Official Gazette.