Law Summary
Accreditation Application Procedure
- All consumer organizations wishing to participate in hearings or investigations affecting consumers must be accredited by the DTI.
- Organizations shall be provided application forms to be duly completed and submitted.
Requirements for Accreditation
- Attachments to the application form include:
- Certified copies of Articles of Incorporation and By-laws.
- Certified Certificate of Registration from the Securities and Exchange Commission (SEC).
- SEC certification confirming compliance with SEC rules and good standing.
- List of trustees, officers, members, and their addresses.
- Other documents the DTI may require.
Criteria for Accreditation
- Minimum membership: 30 members for municipalities, 50 for cities.
- Organization classified as National if it has substantial membership or a chapter in Luzon, Visayas, and Mindanao.
- False statements on applications are grounds for denial.
- Groups must seek consensus on issues; false representations bar accreditation.
- Application can be filed by the organization's President or any officer.
Issuance of Certificate of Accreditation
- Upon satisfaction that the requirements are met, the Director issues the Certificate of Accreditation.
Validity and Renewal of Accreditation
- Accreditation certificates are valid for two years.
- Renewal applications must be filed before expiry to maintain continuous validity.
- Late renewal certificates' validity starts from the date stipulated on the new certificate.
- Certificate must boldly state the period of validity.
- Renewal requires submission of updated membership lists, amendments to governing documents, and other required documents.
Verification and Grounds for Cancellation or Suspension
- DTI shall verify submitted documents to ensure accreditation of worthy organizations.
- Grounds for cancellation/suspension after notice and hearing include:
- Non-existence of members claimed.
- Acts harmful to consumer interests.
- Supporting business promotions or endorsements for consideration.
- False statements in documents.
- Violation of LOI 1337, the rules, or implementing orders.
Automatic Cancellation
- Cancellation of SEC registration automatically cancels accreditation.
Decisions and Orders
- Director’s decisions are final after 15 days if no appeal is filed to the Secretary.
- Appeals must include a verified memorandum with facts and legal grounds.
- Secretary’s decisions become final after 15 days unless appealed to the courts.
- Parties are allowed one motion for reconsideration.
- Violations subject to administrative adjudication under separate DTI orders (M.O. 69).
Requirements for Administrative or Quasi-Judicial Bodies
- By law, these bodies must require consumer organizations to submit:
- Certified Articles of Incorporation and By-laws.
- Certified SEC registration.
- SEC certification of good standing.
- Bodies must determine the organization's substantial membership and representation before allowing participation.
Purpose of Requirements
- These requirements serve to:
- Establish the organization’s motive and intent.
- Confirm legal personality.
- Ascertain standing and true representation.
Option for Compliance by Administrative or Quasi-Judicial Bodies
- Bodies may choose between:
- Conducting the document verification and membership determination themselves.
- Accepting the organization's Certificate of Accreditation as proof.
Additional Provisions
- The Undersecretary for Regional and Domestic Trade may issue forms, circulars, and orders to implement these rules.
- All inconsistent orders are repealed or modified accordingly.
- These rules take effect immediately upon publication in two newspapers of general circulation.