(Exact) Change

Has Come
A Report on Republic Act No. 10909
By: LI Ron Husmillo

Report Outline
Introduction
Declaration of Policy
Definition of Terms
RA 10909 in Action
Regulated Acts
Remedy
Penalties Imposed

Other Matters

Introduction

Introduction
RA 10909 = No Shortchanging Act of 2016
Senate Bill 1618 and House Bill 4730
Lapsed into law on July 21, 2016

Declaration of Policy

Protection
from
deceptive,
and unfair
practices

Provision of
penalties for
offenders

Provision of
remedies for
consumers

General
Welfare of
Consumers
&
Business
and Industry
Standards

Institutionaliz
ation of
practice of
giving exact
change

Information
and education
for proper
exercise of
rights

Definition of Terms

Business
Establishm
ent
Shortchang
e

Change

Services

Consumer

RA
10909

Price

Goods

Insufficient
Change

Gross Sales

Business
Establishment

As to nature

As to form of business organization

As to products sold

Change
Excess in payment given by a consumer

Consumer
Natural person
Purchases in cash

Goods
All types of tangible property
Possession of which could be transferred
In whole or in part
Temporarily or permanently

Gross Sales
Total invoice value
Before discounts, allowances, and returns

Insufficient Change
Change less than what is due

Price
Tag, indicating the retail price of the goods or

services

Services
All types of commercial activities

Shortchange
Giving insufficient change; or,
Giving NO change at all

RA 10909 in Action

Regulated Acts
General
Prohibitio
n
Prohibition on
shortchanging,
as defined

No restriction on
giving excess
change,
however.

Other
Prohibitio
ns

Price Tags

Cannot give
change in any
form other than
the current
currency

Use of price tags

when
appropriate, with
exact price per
unit or service

Cannot ask for

permission for
exemption

Inform
consumers of
the tax
incorporated in
the price via
signs or the
receipt

Remedy: Complaint with

DTI

Filed with DTI

Not later than ten (10)
working days from the
violation
Consumer is not
precluded, however, from
pursuing rights and
remedies under any
other law

Letter of
Complaint

DTI
Investigati
on
To be conducted not later
than ten (10) working
days after submission of
complaint
Notice to be issued with
the establishment
involved

To be issued after full

investigation, and not
later than thirty (30) days
from receipt of the
complaint

Decision

 P25,000 or 10% of gross sales on day of violation,

whichever is higher
License to operate the business of the business
establishment is revoked
P15,000 or 7% of gross sales on day of violation, whichever
is higher

P5,000 or 5% of gross sales on day of violation, whichever is

higher

P500 or 3% of gross sales on day of violation, whichever is

higher

4th
3rd
2nd
1st

Penalties Imposed

Other Matters

Other Matters
DTI has 120 days to promulgate the IRR
In consultation with stakeholders and other

government agencies
Currently pending with DTI.

DTI also is tasked to mount an Information

Campaign
Also tasked to publish list of violators.