Scope and Coverage
- Applies to administrative fines relating to:
- Consumer Act of the Philippines (R.A. 7394)
- Price Act (R.A. 7581)
- Executive Order No. 913 covering:
- Price Tag Law (R.A. 71)
- Business Name Law (Act No. 3883, as amended)
- Law on Brokerage (Act No. 2728, as amended)
- Bulk Sales Law (R.A. 3952)
- Bonded Warehouse Act (Act No. 3893)
Interpretation Principle
- The order shall be interpreted with the best interest of consumers as the guiding principle.
Administrative Fines under the Consumer Act (R.A. 7394)
- Fine range: minimum P500, maximum P300,000, plus an additional P1,000 per day for continuing violations.
- Applies to provisions including price tagging, metrication, advertising, labeling, deceptive practices, warranties, product safety, and related consumer protections.
- Specific schedules differentiate fines based on roles: Retailers, Wholesalers, and Manufacturers, with varied minimum to maximum fines.
- If the offender engages in multiple activities, the higher penalty applies.
Fines for Violations under EO 913 Related Laws
- Fine range: minimum P500, maximum P150,000, depending on circumstances.
- Schedule of fines varies by offender category (Retailer, Wholesaler, Manufacturer).
Fines under the Price Act (R.A. 7581)
- Fine range: minimum P1,000, maximum P1,000,000.
- Penalties applied after due notice and hearing.
- Fines vary by offender category and gravity of violation.
- If the offender conducts multiple activities, the highest applicable fine shall govern.
Factors in Imposing Fines
- Mitigating Circumstances include:
- Voluntary admission of guilt
- Willingness to compromise or testify
- Good faith compliance
- Execution of undertakings to cease violations
- Aggravating Circumstances include:
- Repeat offenses
- Multiple simultaneous violations
- Use of deceit or falsification
- Non-compliance and bad faith actions
- Intimidation or bribery
- Offender's status as public officer or collusion with one
- Alternative Circumstances considered as either mitigating or aggravating:
- First offense involving small quantity (mitigating), otherwise aggravating
- Quantity and nature of goods (basic goods are aggravating, luxury goods mitigating)
- Degree of education and capitalization of violator
Other Important Penalty and Payment Provisions
- Fines must be paid in lump sum within 30 days or in installments over no more than 12 months upon showing financial incapacity.
- Additional penalties such as closure, confiscation, suspension may be imposed when warranted.
- A daily fine of P1,000 applies for continuing violations on top of the imposed fine.
Rules for Determining Fine Levels
- Basic fines set by schedule in this order.
- Fine levels:
- Minimum: where only mitigating circumstances exist
- Medium: no mitigating or aggravating circumstances
- Maximum: where aggravating circumstances exist
- Offset rule applies if both mitigating and aggravating circumstances are present
- Special consideration for small businesses like sari-sari stores with capitalization not exceeding P50,000 where only basic fine applies for the first offense.
Transitory and Final Provisions
- Repeals conflicting prior rules and regulations.
- Effective 15 days after publication in the Official Gazette or a newspaper of general circulation.