House to pass proposed 'Exact Change Act'

MANILA, Philippines - Soon supermarkets may be held liable for not giving the exact change to its customers.

The House of Representatives has said that House Bill 4730, in substitution of House Bill 3606, authored by Las Piñas City Rep. Mark Villar, may be approved on third and final reading anytime soon.

The proposed measure will support Republic Act No. 7394, also known as the "Consumer Act of the Philippines," which was enacted to protect the interest of consumers, promote their general welfare and establish standards of conduct for business and industry.

The HB 4730, to be called the Exact Change Act, aims to "protect consumers from trade malpractices and from substandard or hazardous practices." The bill was passed on second reading last July.

See full text of the bill from our Bill Tracker.

"These laws recognize that consumers play a key role in the Philippine economy. Hence, they seek to protect the rights of consumers and put a stop to abusive practices of business establishments in the country," Villar said.

He said that the practice of giving insufficient change or giving no change at all to consumers by product sellers or service providers is something that is often taken for granted.

"This is usually because the change involves a matter of five, ten, fifteen or twenty centavos, or small bills, which when added up at the end of the day, amount to thousands of pesos," Villar stressed.

The measure remedies the malpractice by declaring as unlawful for any business establishment to give insufficient change or no change at all to consumers who purchased or received products or services, even if such change is only of a small amount.

It also prohibits any business establishment that sells products or provides services to give the change in any other form other than the present currency or to ask the consumer for permission to be exempted from the provisions of this Act for any reason including the non-availability of small bills or coins.

As per Committee Report No. 348, key provisions require business establishments to put signs in every counter, which states, "Demand your Exact Change."

The bill also directs business establishments to use price tags, when appropriate, indicating the exact retail price per unit or service, which already includes the taxes applicable to the goods or services being offered.

These establishments shall also put signs in conspicuous places within the establishment or reflect in the official receipts issued the taxes incorporated in the retail price per unit or services.

"This is to avoid misleading the consumer as to the exact price they have to pay for the goods or services and consequently, the exact change due to them," Villar said.

The proposed Act prescribes penalties for violators through a fine ranging from P500 to P25,000 or three percent up to 10 percent of the gross sales of the business establishment.

Further, a suspension for three months or revocation of the license to operate of the business establishment shall be imposed for succeeding offenses.

The bill mandates the Department of Trade and Industry (DTI) to undertake an education campaign to inform consumers of the provisions of this Act and to regularly publish a list of the establishments found to have violated the provisions of thia Act.