Law Summary
Objectives
- Encourage establishment of active consumer organizations.
- Define guidelines and procedures for DTI recognition of COs.
- Ensure only legitimate COs advocating for consumers are recognized.
- Empower COs to champion consumer welfare.
- Foster partnerships between government and COs.
- Set guidelines for benefits and project assistance to COs that contribute to consumer interests.
Scope and Coverage
- Applies to all COs (local or national) seeking recognition by DTI, including those previously accredited and new applicants.
Title and Definitions
- The rules are titled "Guidelines on the Recognition of Consumer Organizations."
- Key definitions include:
- Administrative costs: non-refundable fees related to application processing.
- Certificate of Recognition (COR): Official document certifying DTI recognition.
- Consumer Organization (CO): Independent groups representing consumer interests, duly registered with SEC or CDA.
- Recognized Consumer Organization (RCO): A CO that has met recognition requirements and holds a COR.
- Other definitions cover consumer, commercial/political endeavors, relevant DTI offices, membership, project assistance, and officers.
Categories of Recognized Consumer Organizations
- Local CO: Based in a municipality (min. 7 members) or city (min. 20 members), active for at least two years.
- National CO: Recognized by DTI, with min. 40 members and active chapters in each major geographical area (Luzon, Visayas, Mindanao).
Requirements for Recognition
- New Applicants:
- For currently accredited COs, submit application form, Certificate of Accreditation, and financial statements.
- For those without previous accreditation, additional documents such as SEC/CDA registration, list of members/officers, proof of consumer advocacy for 2 years, and undertakings of independence are required.
- Renewal applicants must submit updated documents including General Information Sheet, list of officers, latest financial statements, and independence undertaking.
- Filings are made with DTI-CPAB for NCR or national COs, or DTI-Provincial Offices for local COs.
- Administrative fees apply; no processing fee.
Application Processing
- Applications are only filed when all documents are submitted.
- DTI validates documents and inspects the CO within 5 working days.
- Reports are prepared and forwarded for evaluation.
- Processing is completed within 15 working days, subject to suspension if additional documents are requested.
- If no action is taken after processing time, the application is deemed approved.
- Disapproval can be appealed within specified periods, culminating in a final decision by the DTI Secretary.
Certificate of Recognition (COR)
- Issued electronically, signed by the DTI Secretary.
- Includes CO name, address, issue date, validity (3 years), recognition number, and non-transferability statement.
- COs must notify DTI of any corporate changes.
- Renewal must be applied for 30 days before expiration.
Responsibilities of Recognized Consumer Organizations
- Actively participate in government consultations and policy recommendations.
- Promote equality among members.
- Notify authorities about consumer law violations.
- Establish Consumer Assistance Facilities for consumer concerns.
- Conduct consumer education and awareness activities.
- Submit periodic accomplishment and financial reports.
- Provide price monitoring data to DTI.
- Participate in consumer welfare events annually.
Suspension, Cancellation, and Reinstatement of COR
- Suspension occurs after due notice for failure to fulfill responsibilities, with duration depending on extents of non-performance (1 to 6 months).
- Certificate reinstated after suspension period.
- Cancellation for grounds including material misrepresentation, prejudicial acts, compromising independence, commercial/political engagement, multiple suspensions.
- Cancelled COs may reapply after one year.
Complaint Handling
- Complaints against COs must be filed within 30 days of discovery.
- Handled by appropriate DTI offices depending on CO location.
- Procedures governed by existing administrative orders and penal provisions.
- Filing complaints does not bar separate civil or criminal actions.
Participation in Administrative Proceedings
- Only recognized COs are endorsed by DTI to participate in administrative, legislative, or quasi-judicial bodies.
Benefits and Project Assistance
- RCOs receive various benefits to motivate and support their initiatives.
- Project assistance may be granted subject to budgeting and compliance with government regulations.
- RCOs may apply for assistance during calls for nomination published by DTI.
- Funding may be sourced locally or internationally.
Miscellaneous Provisions
- Previously accredited COs may apply under these Guidelines; old certificates remain valid until expiration.
- Conflicting previous issuances are repealed or amended.
- The order takes effect 30 days after publication.