Business Shortchanging Prohibition Act

Business Establishment: Includes natural or juridical persons, single proprietorships, partnerships, corporations, government entities engaged in selling goods or services.
Change: The excess payment returned to the consumer after a purchase.
Consumer: Any natural person paying in cash for goods or services.
Goods: Tangible property bought, sold, or possessed temporarily or permanently.
Gross Sales: Total invoice value of sales prior to discounts, allowances, or returns.
Insufficient Change: Change given that is less than what is due.
Price Tag: Labels indicating retail price including taxes.
Services: Commercial activities enabling the supply or use of goods or intellectual property.
Shortchange: Giving insufficient or no change to the consumer.

Business establishments must give exact change without waiting for consumers to request it.
Shortchanging, even by a small amount, is unlawful.
Giving change in forms other than currency or seeking exemption from law provisions is prohibited.
Price tags must show exact retail prices inclusive of taxes.
Establishments must display conspicuous signs noting that prices include taxes.

Consumers must submit a written complaint to the Department of Trade and Industry (DTI) within 10 working days of violation.
DTI must investigate and notify the business within 10 working days after submission.
DTI issues decision and findings within 30 days after receiving the complaint.
The law does not limit consumer rights under other laws.

First Offense: Fine of P500 or 3% of the violator’s gross sales on the day of violation, whichever is higher.
Second Offense: Fine of P5,000 or 5% of gross sales.
Third Offense: Fine of P15,000 or 7% of gross sales; license suspension for 3 months.
Fourth Offense: Fine of P25,000 or 10% of gross sales; license revocation.
Establishments must also pay to the complainant the total amount of withheld change determined by DTI's audit.

The DTI will draft necessary implementing rules in consultation with stakeholders within 120 days from effectivity.
DTI will conduct an information campaign to educate consumers about the law.
Regular publication of violators' list to promote transparency.

If any section is invalid, the remainder of the law remains effective (Separability Clause).
All laws or regulations inconsistent with this Act are repealed, amended or modified accordingly.
The Act takes effect 15 days after publication in the Official Gazette or major newspapers.