Jurisdiction of Acting Consumer Arbitration Officers
- Provincial Directors have original and exclusive jurisdiction within their provinces to mediate, conciliate, hear, and decide consumer complaints covering specific areas of the Consumer Code, including:
- Consumer product quality and safety (except areas under DOH and DA)
- Deceptive, unfair, and unconscionable sales acts or practices
- Violations related to the use of the metric system
- Consumer product and service warranties
- Labeling and packaging (excluding food, drugs, cosmetics, devices, hazardous substances)
- Price tag requirements
- Liability for products and services
- Advertising and sales promotion (excluding food, drugs, cosmetics, devices, hazardous substances)
- Regulation of repair and service firms
- Consumer credit transactions
- If the Acting Officer is absent or the position is vacant, the Regional Director appoints a temporary Arbitration Officer from Provincial Directors in the region.
Acting Consumer Arbitration Officers in the National Capital Region (NCR)
- Legal Officers of the Office of Legal Affairs serve as Acting Consumer Arbitration Officers for offenses committed within the NCR, performing these functions in addition to their duties as Hearing Officers under E.O. 913.
Handling of Consumer Complaints
- The Head of the Trade and Industry Regulation Division in the province initiates investigations upon petition or letter-complaint involving violations in the jurisdictional scope.
- Upon a prima facie finding, the Head may initiate formal administrative action motu proprio or upon verified complaint.
- In NCR, Provincial Directors and Regional/Assistant Regional Directors have analogous functions.
Mediation Process
- The Acting Arbitration Officer's primary aim is to facilitate a settlement between the parties.
Formal Hearing Procedure
- If settlement fails, the Officer proceeds with formal investigation, hearing, and decision.
- Decisions must be rendered within fifteen (15) days from the end of the investigation.
Sanctions and Penalties
- Possible administrative penalties include:
- Cease and desist orders with specified acts and compliance reports
- Acceptance of voluntary assurance of compliance with specific conditions such as compliance with the Consumer Code, discontinuance of unlawful acts, recall or refund of defective products, reimbursement of complainant expenses, and compliance bonds
- Restitution or rescission of contract without damages
- Condemnation and seizure of hazardous products unless respondent posts a bond for damages
- Administrative fines ranging from P500 to P300,000, plus daily fines up to P1,000 for continuing violations
- These penalties are without prejudice to criminal prosecution under the Consumer Code.
Appeal Process
- Non-interlocutory orders become final and executory unless appealed to the Secretary within fifteen (15) days.
- Appeals are processed through the Director of the Office of Legal Affairs, who decides as the Secretary's delegate.
Procedural Rules
- Ministry Order No. 69, Series of 1983 governs adjudication procedures where consistent with the Consumer Code and this Order.
Jurisdiction over Other Trade and Industry Violations
- Cases outside the Consumer Code’s coverage continue to be adjudicated under E.O. 913 and Ministry Order No. 69, Series of 1983.
Effectivity
- The Order takes effect immediately upon publication in two newspapers of general circulation.