No Return, No Exchange

1. What is the legal basis of the prohibition on the No Return, No Exchange policy of business establishments?
Pursuant to the Implementing Rules and Regulations of R.A. 7394, or the Consumer Act of the Philippines, specifically Title III, Chapter
1, Rule 2, Section 7 of Department Administrative Order (DAO) No. 2, Series of 1993, the words No Return, No Exchange, or words
to such effect shall not be written into the contract of sale, receipt of sales transaction, in any documents as evidence of sale, or
anywhere in the store or business establishment.
2. What is the rationale for this provision?
The prohibition is aimed to correct the misconception of a lot of consumers today that they do not have the right to return shoddy or
defective goods or demand for remedies, in case of defective or imperfect service because of the No Return, No Exchange notice in
the receipts or anywhere in the business establishments.
3. Why is the presence of a No Return, No Exchange notice considered deceptive?
Such statement is considered deceptive because consumers may return or exchange the goods or avail of other remedies, in case of
hidden faults or defects, or any charge the buyer was not aware of the time of purchase. By provision of law, sellers are obligated to
honor their implied warranties and grant corresponding remedies to consumers.
4. Can Business establishments still issue official receipts with the No Return, No Exchange?
The Plan has six-month objectives and three-year objectives.
Business establishments with unused Official Receipts should erase or blot out the words No Return, No Exchange before issuing
such receipts and henceforth, such words should no longer be printed in their receipts or anywhere in their business establishments.
5.If an item bought from store Y turns out to be more expensive than a similar item in store X, can the customer return the
item and ask for a refund?
No. While consumers have the right to choose and make a canvass of prices, once a sale in done and the product has no defect, one
cannot return the goods nor ask for a refund
6.Can a store exercise only a policy of exchange but not refund?
Consumers are entitled to either an exchange or refund, as long as there is a defect in the quality of goods or imperfection in the
service.
7.If the defect is due to mishandling on the part of the buyer, can he/she still return the item and demand and exchange or
refund?
No. The prohibition covers only hidden defects, shoddy goods or imperfect service.
8.If after buying a certain item, a customer changes his/her mind and wants to return said item. Can he/she invoke the
prohibition on No Return, No Exchange?
No, the prohibition is not an excuse for the consumer to return the goods because of a change of mind.
9.Is there a time limit within which a buyer may return defective products?
There is no hard-and-fast rule on the period within which a customer may return the products he purchased. A rule of reason should,
however, be observed, taking into consideration the nature of the item purchased and the express / implied warranties mandated by
law, i.e. Consumer Act and the New Civil Code of the Philippines.
10.Can a buyer return defective goods without the official receipt?
The Official Receipt is the best proof of purchase. However, he/she may still demand replacement or refund if he/she can prove that a
defective item was bought from a certain store.
11.Can a store print in their invoices the statement Exchange of Merchandise will not be accepted without a valid receipt or
other evidence of purchase?
No, because there may be goods exclusively manufactured or sold by a company and there is no need to prove purchase of the item.
12.Can a store impose the condition that merchandise can only be exchanged once?
No, because merchandise can be exchanged as many times, as long as the consumer chooses the option of replacement.

Product Warranty
1. What is the primary law governing all contract of sales with conditions and warranties?
The provisions of the New Civil Code on conditions and warranties shall govern all contracts of sales with conditions and warranties.

2. What are the responsibilities of a seller / vendor under the New Civil Code in cases of express warranties?
Under Article 1561, a vendor or a seller has the responsibility to ensure that the items he or she sells has no hidden defects.

3. What kind of defects of the item sold shall make the vendor or seller liable?
If the defects should render the item sold totally unfit for the use for which it is intended, the seller or the vendor shall be liable for such
defects. Second, if the defect should diminish or decrease its fitness or its use to the extent that if the buyer was aware of such defect
he would not have bought the product or would have demanded a lower price for it.

4. What are the instances where a vendor or seller may not be held liable in case of defects?
A vendor or seller may not be held liable in cases of patent defects pr those which are clearly visible upon inspection of the product
bought. In case the defects are not visible, and the buyer is an expert, who by reason of his trade or profession should have known the
defects, then the vendor or seller may not be held liable.

5. What are the responsibilities of the seller or vendor as to the quality or fitness of the product sold in case there is no
express warranty given to him?
The seller or vendor is liable to the buyer in an implied warranty, if such buyer make known to the seller expressly or impliedly, the
particular purpose for which the goods are acquired. The vendor, by implication, warrants the general fitness or quality of the product
sold to the buyer. Second, the seller or vendor is liable to the buyer if such buyer relies on the sellers skill or judgment.

6. Aside from the provisions of the New Civil Code, what are other laws that may apply in cases of express warranties?
In addition to the New Civil Code provisions on sale with warranties, the provisions of Title III, Chapter III of the Consumer Act of the
Philippines shall govern the sale of consumer products with warranty.

7. What are the minimum terms of express warranty under the Consumer Act that shall be given by a seller or manufacturer?
The following shall be stated in an express warranty: - the terms of warranty, written in clear and readily understandable language; - the
warrantors identity; - the partys identity to whom the warranty is extended; - the products or parts covered; - the warrantors action
plan in the event of a defect, malfunction or failure to conform to the written warranty; - the directive to the consumer to avail of the right
which accrue to the warranty; - the period within which, after notice of defect, malfunction, or failure to conform to the warranty, the
warrantor will perform any obligation under the warranty.

8. What is the difference between a Full warranty and Limited warranty (express)
There is Full Warranty if the warranty conforms with the minimum standards for warranties. To conform with the requirements, the
following should be found in a full warranty: First, there should be a remedy or relief offered to a consumer within the reasonable time
and without charge in case of defect, malfunction, or failure to conform with such written warranty. Second, the warranty should give the
consumer an option to either ask for a refund or replacement without charge of such product or part, as the case may be, where after
reasonable number of attempts to remedy the defect or malfunction, the product continues to have the defect or to malfunction. A
Limited Warranty, on the other hand, is when the written warranty does not meet the abovementioned minimum requirements.

9. When shall the retailer be subsidiarily liable under the express warranty?
The retailer may be subsidiarily held liable attaches in the following instance: - In case where both the manufacturer and the distributor
failed to honor the warranty the retailer shoulder the expenses and costs necessary to honor the warranty but the retailer is not
prevented from pursuing actions against the distributor and manufacturer.

10. What are the documents to be presented to the seller or vendor in case the consumer opts to have the defective product
repaired, replaced, or refunded under an express warranty?
- The consumer should present a copy of the warranty card or documents and the official receipt of the product sold or bought.

11. What is the minimum duration or period of an express or implied warranty?

The duration of a warranty shall be reckoned with the following circumstances: - If there is a stipulation of the period agreed between
the seller and the consumer within which the express warranty shall be enforceable; - If the implied warranty on merchantability
accompanies an express warranty, both will be of equal duration; - Any other implied warranty: not less than 60 days nor more than one
year following the sale of a new consumer product.

12. What are the options given to a consumer in case of a breach of an express warranty?
First, the consumer can have the goods repaired. Warranty work must be made within 30 days. Such period may be extended by
conditions beyond the control of the warrantor or his representatives. Second, the product or its parts may be replaced. Third, the
consumer may ask for a refund from the warrantor. The amount directly attributable to the use of consumer prior to the discovery of the
non-conformity shall be deducted.

13. What are the options given to a consumer in case of a breach of an implied warranty?
The consumer may retain the goods and recover damages, or reject the goods, cancel the contract, and refund the amount paid for the
product, including damages.

14. Are secondhand consumer products covered by a warranty?

Generally, there is no implied warranty in the sale of secondhand articles, except when the goods are sold as to raise an implied
warranty, i.e. if such buyer makes known to the seller, the particular purpose for which the goods are acquired. Doing so warrants the
general fitness or quality of the product sold to the buyer. Second, the seller or vendor is also liable under a warranty in the sale of
secondhand products if the seller has given an express written warranty.

15. What is the jurisdiction of the DTI in the sale of secondhand consumer products?
DTI takes jurisdiction of complaints regarding secondhand products if such secondhand / surplus products are sold by persons
engaged in the business of selling products and they have, in effect, power to enforce the warranty provided for such products. On the
other hand, the complaint shall be filed with the appropriate regular courts if the person who sold the secondhand product is not
engaged in the business of selling products, commodities, merchandise, and goods.

Business Name Registration

What is a Business Name?
A business name refers to ANY name that is different from the TRUE NAME OF AN INDIVIDUAL, WHICH IS USED OR
SIGNED in connection with her/his business.
Is Business Name Registration required?
Yes, if a person will use a firm name other than his/her true name.
What is the Enhanced Business Name Registration System (E-BNRS)?
E-BNRS is the new web-based system DTI designed to make registration faster and easier. To make this possible, DTI
further amended the revised implementing rules and regulations of the Business Name Law withDepartment
Administrative Order (DAO) 10-08 series of 2010.
DAO 10-08 s2010, which takes effect October 6, 2010, has the following salient features:

Reduced required information in the application form only seven required fields plus the undertaking

Single Registration per BN, regardless of the number of branches of your business

No need to upload or submit Email Notification of Approval (ENA) or Transaction Reference Number (TRN) page

Relaxed rules on the prohibition of identical and confusingly similar BNs

Territorial coverage of business name (whether within a barangay, city/municipality, region or national in
scope) specified

Three modes of registering a BN retained

Registration at any DTI Field Office

No need to personally file your application

Who may apply for a Business Name?
A person who is at least eighteen (18) years old, doing business or proposing to do business in the Philippines under a
BN and who is not disqualified by any existing law or regulation to engage in business is qualified to apply for a BN
registration.
Where can I get the application forms?
The forms are available at all DTI Offices. It may also be downloaded from the DTI-NCR (www.dtincr.ph) or DTI-BNRS
(www.bnrs.dti.gov.ph) websites.
What are the requirements in registering a business name?

Two copies of completely filled up application forms signed by the owner. Note that only the owner is
authorized to sign the application form.

Payment of registration fee plus documentary stamp tax.

Per DTI Department Administrative Order No. 10-10, series of 2010, starting 03 January 2011, the following
registration fees for every application for registration of BUSINESS NAME (original and renewal) depending on the
territorial jurisdiction covered in the application are as follows:
Barangay
PHP 200.00
City/Municipality
PHP 500.00
Regional
PHP 1,000.00
National
PHP 2,000.00

Presentation of original copy of one photo-bearing national issued Identification Document (ID) with signature.
Foreign applicants must present the original and submit clear certified copy of the Certificate of Authority to Engage
in Business in the Philippines.
Where can I register my BN?
There are two (2) modes in registering business names:

Purely over the counter - Registration can be done at any DTI Field Office. Here in NCR, DTI-NCR has four Area
offices.

Area 1 - Mezzanine Floor, Roxas Strip Bldg., Roxas Blvd. corner Arnaiz Avenue, Pasay City
Area 2 - Penthouse Level, Goodland Building, 377 Sen. Gil J. Puyat Avenue (Buendia) Makati City, (near
DTI International Building)
o Area 3 - G/F Highway 54 Plaza, EDSA, (Across SM Megamall) Mandaluyong City
o Area 4 - 5/F Araneta Square Mall, Monumento Circle, Kaloocan City

Online end-to-end File application online at www.bnrs.dti.gov.ph, fill-up application form, pay the required
fees to your nearest DTI field office, and have your certificate printed. Visit the nearest to DTI field office within
5 working days and present any national government national issued Identification Document (ID) and the
duly-accomplished application form with signature.
The LGUs also have PBR kiosks where clients may lodge their applications online.
o
o

What are the rules on registrability of business name?

BNs that are NOT registrable are:

Those which are or whose natures of business are illegal, offensive, scandalous, or contrary to propriety (e.g
Popoys Jueteng Betting Place, Boobs Massage and Spa)

Names that are the same, nearly the same as or confusingly the same with an existing registered business,
company, partnership, corporation, cooperative name; nor it infringes on any trademark, service mark or
tradename (e.g Anne Doks Lechon, Jolibee, Starbax Caf)

Names composed purely of generic or geographic words (e.g The Laundry Shop, Bacolod)

Names which by law or regulation cannot be appropriated (e.g OTOP, Intelligence, State College, CALBARZON)

Names used to designate or distinguish, or suggestive of quality of any class of goods, articles, merchandise or
service (e.g Best Taho Factory, A-1 Auto Repair Shop)

Names or abbreviation of a name used by the government in its governmental functions (e.g NBI Private
Investigation Services, DTI Trading)

Names or abbreviation of a name of any nation, intergovernmental or international organization (e.g Philippine
Manpower Pooling Agency, UNESCO Marketing)

Names that are deceptive, misleading or which misrepresent the nature of the business (e.g ABC Construction
Services where nature of business is recruitment, a business name carrying another persons name)

What is territorial scope/territorial applicability of BN registration?

Territorial scope/applicability of BN registration refers to an area within which the applicants right to use the registered
BN shall be confined. It may be within a barangay, within a certain city/municipality, region or may be national in
coverage.
What are the rules on the approval of BNs within territorial boundaries?
A proposed BN will be validated against the database of registered BNs in the territory:

Barangay the proposed business name will be validated against the database of registered BNs in that
specific barangay, city/municipality covering specified barnagay, proper region and national level in scope. It
will be approved provided it is not identical or confusingly similar with BNs registered within that barangay,
city/municipality, region or BNs national in coverage.

City/Municipality the proposed BN, city/municipality in scope, will be validated against the database of
registered BNs in that specific city/municipality, proper region and national in coverage.

Regional - the proposed BN will be validated against the database of registered BNs in that region and those
national in scope.

National - the proposed BN will be validated against the database of registered BNs national in application.
The territorial scope of my Business Name is within a city. If I want to expand my business and put up
branches in other cities, what do I need to do?
Expanding your business outside the registered territory is a change of location (i.e. change of the territorial
applicability of your business name). This would require a new business name application.
Do I still need to register the branches of my business?
No. There is a rule of single registration per business name. Thus, if you will be using the same BN for your branches,
there is no need to register the branches of your business within the same coverage of the approved BN.
When an existing branch, which registered prior to DAO 10-08, Series of 2010, renews its application, the approval
thereof will be applicable to all branches, including the main office within the same territorial coverage chosen.
What happens to BNs that have been registered prior to the issuance of DAO 10-08, Series of 2010?
Existing BNs will be treated as nationally registered. The Registrant will be required to select the territory/locality upon
renewal registration.
How long is the validity of my BN registration?
The Business Name registration is valid for five years from the date of registration and may be renewed on the day or
within 6 months from expiration.

What are the requirements for RENEWAL of Business Name registration?

Applications for renewal shall be filed within six (6) months immediately following the expiration of the registration. If
the renewal application is filed within the last three (3) months thereof, a surcharge of Fifty Percent (50%) of the
registration fee shall be imposed. If applicant registers after 6 months after the date of expiration, his/her application
is considered as a new application.
Early renewal or renewal before the expiration date is not allowed.

Fill up the portion of the application form for renewal.

Processing fee plus P15.00 documentary stamps if renewed within the first three months after the date of
expiration.
Is there a minimum required capitalization in registering a business name?
None.
What are the requirements/procedures for the Change of Business Name?

Filled-up new application form plus payment of required fees.

Submit a notarized affidavit of cancellation of the registered business name, stating the reason/s for the
cancellation and that the registered owner has no outstanding financial obligation.

Surrender original copy of the business name certificate and the duplicate copy of the application form. An
affidavit of loss if either the business name certificate and/or the duplicate copy of the application form was
lost.
Do we still need to inform DTI when we close our business?
Yes, you have to apply for cancellation of your registered business name.
What are the requirements/procedures for the cancellation of a Business Name?

Affidavit of cancellation of the registered business name, stating the reason/s for the cancellation and that the
registered owner has no outstanding financial obligation.

Surrender original copy of the business name certificate and the duplicate copy of the application form. An
affidavit of loss if either the business name certificate and/or the duplicate copy of the application form was
lost.
What are the requirements for Voluntary Cancellation?

Letter request signed by the owner.

Affidavit of cancellation of the registered business name, stating the reason/s for the cancellation and that the
registered owner has no outstanding financial obligation at the time of closure of establishment.

Surrender original copy of the business name certificate and the duplicate copy of the application form; or an
affidavit of loss if either the business name certificate and/or the duplicate copy of the application form had
been lost.
What are the requirements for Change of Address?
The Enhanced Business Name Registration System does not require a business address, but a territorial scope of the
business. The applicant may locate his/her business anywhere within the defined territorial scope as indicated in the
application.
I want to change the territorial scope of my business name. What is the process?

Apply for cancellation of Business Name.

o Letter Request signed by the owner.
o Affidavit of Cancelation without financial Obligation
o Bring Old BN Registration Certificate.

A certificate of cancellation will be issued by DTI with Php 15.00 documentary stamp fee.

Proceed to new Business Name Application process.

I lost my original BN registration certificate. How can I secure another copy?
You may be able to secure, as your option, a substitute document to evidence the existence and validity of your
business name based on the DTI registration records. This option refers to a request for and issuance of the
CERTIFICATION - which is an attestation of the fact of registration of the given business.
Requirements to secure a CERTIFICATION from DTI-NCR are:
1. Letter request signed by the authorized signatory, stating the ff:

business name (BN)

reason/s

Business Name certificate number

2. Secure and attach a duly notarized affidavit of loss.
3. Processing fee of P50.00 per certification plus documentary stamp tax of P15.00.

What are the requirements if I want to request for verification if a certain business name is registered?
You may verify/search a business name through the internet via https://www.bnrs.dti.gov.ph/web/guest/search.
If you need a certification from DTI regarding a valid verification, the following requirements are needed:
1. Letter request signed by the requesting party, stating the following:

business name (BN)

reason/s for verification; Verification may be allowed for valid reasons like investigation and legal purposes
only.

Processing fee of P50.00 plus P15.00 documentary stamp tax per business name
What are the requirements if I want to secure a Certified True Copy?
Requests for Certified True Copy of the Business Name Certificate is allowed if the applicant has with him/her
photocopy(ies) of the Business Name certificate which he/she would want the agency to certify as true and correct.
The requirements in securing a certified true copy are:

Letter request signed by the requesting party; indicate requested number of copies for CTC

Photocopy(ies) of the Business Name certificate

Processing fee of P50.00 plus documentary stamp tax of P15.00 per copy
Can a natural person or sole proprietorship use the word "corporation" or "incorporated" as part of his
business name? How about company?
No, only a partnership or corporation registered with SEC can use the word "company" or "corporation" as part of their
business name.
Is it possible to have more than one business name?
YES.

Product Standards
What is a Standard?
Standard is a document, established by consensus and approved by a recognized body, that provides, for common
and repeated use, rules, guidelines or characteristics for activities or their results, aimed at the achievement of the
optimum degree of order in a given context.
Standards should be based on the consolidated results of science, technology and experience, and aimed at the
promotion of optimum community benefits
What are the types of Standards?
1. Basic standard - standard that covers a wide range of services or establishes a general provision for a
specific field
2.
3.
4.
5.
6.
7.
8.

NOTE: A basic standard may function as a standard for direct application or as a basis for other standards.
Terminology standard - standard that deals with terms used, which often includes their definitions, and
sometimes by explanatory notes, illustrations, examples, etc.
Testing standard - standard that deals with test methods, sometimes supplemented with other provisions
related to testing, such as sampling, use of statistical methods, sequence of tests.
Product standard - standard that lays down the requirements to be accomplished by a product or a group of
products, to certify its fitness for use
Process standard - standard that lays down the requirements to be accomplished by a process, to establish
its fitness for use
Service standard - standard that lays down the requirements to be accomplished by a service, to establish
its fitness for use. Service standards may be prepared in fields such as laundering, hotel-keeping, transport,
car-servicing, telecommunications, insurance, banking, trading.
Interface standard - standard that lays down the requirements dealing with the compatibility of products or
systems at their points of interconnection
Standard on data to be provided - standard that contains a list of characteristics for which values or other
data are to be stated for specifying the product, process or service. Some standards, typically, provide for data
to be stated by suppliers, others by purchasers.

Why are Standards Needed?

Standards are needed because they make life easier by increasing the realiability and effectiveness of products and
services that we use.
What is Standardization?
Standardization is the act of establishing, with regard to actual or potential problems, provisions for common and
repeated use, which aims to achieve the optimum degree of order in a given context. Specifically, the act consists of

the following processes: formulating, issuing and implementing standards. Important benefits of standardization are
improvement of the:

suitability of products, processes and services for their intended purposes,

prevention of barriers to trade and

facilitation of technological cooperation

What are the aims of Standardization?
Standardization may have one or more specific aims, to make a product, process or service fit for its purpose. Such
aims can be, but are not restricted to, variety control, usability, compatibility, interchangeability, health, safety,
protection of the environment, product protection, mutual understanding, economic performance, trade. They can be
overlapping.
What are Philippine National standards? The International Standards?
Philippine National Standards (PNS) are documents established by consensus through technical committee and
approved by the Bureau of Product Standards, that provides, for common and repeated use, rules, guidelines or
characteristics for activities or their results, aimed at the achievement of the optimum degree of order in a given
context.
International standards are standards that were developed by an International standardizing standards organization
and made available to the public e.g. International standard published by International Organization for
Standardization (ISO), International Electrotechnical Commission (IEC), Codex Alimentarius etc.
How are Philippine National Standards being developed?
Standards are prepared through Technical Committees method or Fast Track method.
Technical Committees Method Flow
Abbreviations:
PNS (Philippine National Standards)
CDPNS (Committee Draft Philippine National Standards)
DPNS (Draft Philippine National Standard)
FDPNS (Final Draft Philippine National Standard)
Fast Track Method
Abbreviations: PNS (Philippine National Standards)
BPS (Bureau of Product Standards)
How are Philippine National Standards being developed through Technical Committee Method?
Standards established via technical committee method usually undergo series of deliberation and then circulated for
two months to all sectors concerned for their technical views and comment. In order to achieve the purpose of
standardization, transparency and consensus, a technical committee shall, as much as possible, represent the
following sectors: academe, research institution (s), trade / industry, government agencies, consumer, testing
institution (s), and professional groups.
What is Product Certification?
Product certification is a procedure that assesses whether a product is manufactured according to the requirements of
a standard. The Product Certification Division, also known as Action Team 5 (AT5) is headed by a Division Chief and is
backed by technically competent Product Managers and 3 Technical Support Staff. With the aim of providing
confidence to products through an independent assurance of quality and safety, AT5 operates the Product Certification
Scheme as follows:

Philippine Standard (PS) Quality Certification Mark License Scheme and

Import Commodity Clearance (ICC) Scheme

Under the PS Scheme, BPS issues a license to use the PS Mark to a company after its products have been determined,
through audits, as meeting the requirements of the applicable Philippine National Standards (PNS).
On the other hand, importers of products covered by mandatory PNS are issued the ICC and allowed to use the ICC
Mark after their import shipments (on a per Bill of Lading basis) have been evaluated by BPS as meeting the
requirements of the applicable standard. Import shipments are subjected to sampling and testing. Product Certification
covers the following: Building and construction materials, electrical and electronic home appliances, chemical
products, consumer products, and fresh and processed food.
Why Product Certification?
There are numerous benefits that both entrepreneurs and consumers get from product certification: increased
confidence in the products' reliability and more opportunities to increase market share are just two. In the past few
years, there has been a an increase in demand in the global market for products with greater value but at competitive
prices. A natural result of this demand is the need for firms to give assurance to consumers of their products' ability to
meet expectations. Such assurances are conveyed to consumers through a certification or proof that proves that the
product conforms to specific standards.
What are the benefits of Product Certification?
There are numerous benefit that consumers, manufacturers and trade get from product certification:

For manufacturer, it enhances competitiveness of products in domestic and export markets. As a result, there is
improved sales and profitability.
Traders also benefit by acquiring improved reputation and attracting quality-conscious buyers. Product Certification
also strengthens buyers' confidence in a product leading to increased sales.
Most importantly, consumers are assured of product quality, safety and reliability.
What are the Products under Mandatory Certification?
Products under mandatory certification are found in the list being maintained by the Product Certification Group (AT5)
of BPS. There are 91 products as of 01 June 2005 that affect health and safety of consumers. Please click here to view
the complete and updated list of products under mandatory certification.
(http://www.bps.dti.gov.ph/BPS_Databases_PNSMandatory.php?formAction=list&alphaListBy=L&page=1)
What is PS Certification Scheme?
It is a product certification scheme in which a manufacturer obtains a license to use the Philippine Standard (PS)
Quality and Safety Marks for its capability to consistently manufacture products in accordance with a specific
Philippine National Standard (PNS) or an international accepted foreign standard. This scheme is covered by
Department Administrative Order No. 01, Series of 1997: Revised rules and regulations concerning the Philippine
Standard (PS) Quality and/or Safety Certification Mark Scheme.
The PS license is issued to a manufacturer whose product has successfully passed the requirements of a PNS. With the
license, the manufacturer affixes the PS Mark on his product or product package.
The PS Quality Mark can be found on locally manufactured products and/or in products manufactured in foreign
country with the existing bilateral arrangement with the Philippines from BPS. It assures consumers that the product
they are buying conform to the specific Philippine National Standard or an internationally accepted foreign standard.
The PS Safety Mark, on the other hand, when found on a product, especially a household appliance or electrical
products, guarantees the product's conformance with relevant safety requirements.
What are the types of audit conducted by BPS during the PS Quality and Safety Certification?
1. Quality System Audit
o During the quality system audit, BPS assessors conduct an actual visit to the company's plant to
evaluate the company's effectiveness in managing its quality system for the manufacture and delivery
of its products based on the requirements of the applicable PNS ISO 9000 series of standards or its
future amendment.
2. Product Audit
o In-plant testing
BPS assessors witness the actual testing of product samples using the company's own facilities and
resources. This activity aims to check if the company is applying the requirements of the standard in
the production of its product. This type of product audit will also initially determine if the product
meets the requirements of the standard.
o Independent testing
BPS assessors draw samples of the product from the company's manufacturing site and submit these
for testing by BPS or by BPS accredited testing laboratory. Independent product testing is BPS' means
of affirming the results of the in-plant test.
What is an Import Commodity Clearance?
For imported products, the BPS runs the Import Commodity Clearance (ICC) certification scheme and is covered
by Department Administrative Order No. 5:2001: Revised Rules and Regulations Concerning the Issuance of the Import
Commodity Clearance.
ICCs are issued to importers whose shipments have been found to conform to the requirements of the relevant
Philippine National Standards or acceptable international or foreign standards. In addition to satisfactory test results of
import shipments, BPS conducts random checks at market outlets to make sure that imported shipments consistently
meet the requirements of the applicable Philippine standard.
What does the BPS Product Certification Scheme require from the Manufacturers?
Specific conditions from manufacturers of products under mandatory implementation are to be followed in the PS
Certification Scheme. A manufacturer will not only apply for the PS Mark, but also align its system to ISO 9000
Series of QMS (Quality Management System). This internationally acclaimed standard is a user's mechanism to attune
its procedures in the plant/factory/office in a very organized manner
What does the BPS Product Certification Scheme require from the Importers?
On the other hand, in the ICC Certification Scheme, an importer shall apply for an ICC per shipment of its product,

from the BPS, before it can distribute in the market. If its product is NOT under mandatory implementation, BPS issues
an exemption. If it IS under mandatory implementation, the importer shall subject a product sample from the shipment
of the product to inspections to BPS. If the product passes all required test, then BPS issues the ICC to an importer for
them to distribute the product in the market.
What is the PS License to a Manufacturer?
The PS License is a manufacturer's commitment to continuously conform to the requirements of a standard and the PS
Certification Scheme. It serves as an authority to use the PS Mark on the products covered by the PS License.
How would we know if the product is certified by the Bureau of Product Standards?
Products sold in the market should bear the PS/ICC mark. PS is for products manufactured in the Philippines while the
ICC is for imported products. Products that bear these markings signify that the product went through the quality
requirements of the BPS.
How much is the penalty if we were caught selling uncertified products?
Penalty will be determined, according to the schedule of fines stipulated in DAO 2, series of 2002 including other
administrative sanctions. Please refer to DAO 2 for more details of penalties.
What happens during the mediation hearing?
A mediation officer would discuss your violation, and you will be given the opportunity to settle the case amicably with
a corresponding settlement fee and related administrative sanctions. This would happen if you accept your violation
and is willing to settle. If the case is not settled in the Mediation stage it will be elevated to the Office of Legal Affairs.
What is a Private Emission Testing Center (PETC)?
Private Emission Testing Center or PETC is a privately owned facility for determining the level of opacity and testing the
gaseous content of motor vehicle emissions. It determines the conformity of vehicle emissions to the standards set by
the DENR under the Clean Air Act.
Why is the task of conducting emission testing given to the private sector?
It is delegated to the private sector to stress transparency and competitiveness. Emission testing centers present
business opportunities for small and medium scale enterprises (SMEs), whose growth and development are being
encouraged and supported by government. DTI believes that business is better managed by the private sector. In
addition to this, a level playing field combined with healthy competition enhances successful business endeavors. More
importantly, consumers get better service and value for money.
What vehicles are subject to emission testing?
1. All vehicles subject to renewal of LTO registration.
o Renewal of annual registration shall be allowed only upon presentation of a valid Certificate of
Emission Compliance (CEC) from an accredited and authorized PETC.
2. All motor vehicles found emitting excessive pollutants while operating in a public highway.
o Owners of apprehended vehicles as a result of a roadside inspection by the LTO or its deputized agents
have up to seven (7) days to have their vehicles repaired to meet the emission standards. The PETC
will issue a CEC to release the impounded vehicle or its license plates.
3. Imported second hand motor vehicles prior to initial registration with the LTO.
Who can operate a PETC?
Any natural person (at least 18 years of age) or any juridical person not disqualified by any existing law or regulation
to engage in vehicle emission testing activity is qualified to apply for accreditation, provided that documentary
requirements are complied with.
What are these documentary requirements for PETC accreditation application?

Duly accomplished application form, under oath.

Certified true copy of the following:

Certificate of Business Name Registration (for sole proprietorship)

SEC Certificate of Registration and Articles of Incorporation/Partnership and Board Resolution issued by Board
Secretary specifying the name of authorized representative who must be an officer of the
corporation/partnership (for corporation/partnership)
What are the fees charged to PETC applicants / owners?
1. The fees and charges to be paid for accreditation and authorization of a PETC would depend on its size.
2. PETCs are classified based on asset size:
o Small - with an asset of over P1M up to P15M
o Medium - over P15M up to P100M
o Large - over P100M

What are the schedule of fees to be charged by DTI and DOTC / LTO for PETC application?
Below is the schedule of fees to be charged by DTI and DOTC/LTO:
1. DTI Schedule of Fees (for accreditation)

Application Fee P300.00

(Non-refundable, payable upon issuance of application form)

Assessment Fee: payable within 15 days after billing (including document review, follow-up and review visits)
Small - P8,000.00
Medium - P16,000.00
Large - P24,000.00

Re-Assessment Fee
Small - P4,000.00
Medium - P8,000.00
Large - P12,000.00

Basic Accreditation Fee

Small - P3,000.00
Medium - P4,000.00
Large - P5,000.00

Annual Accreditation Fee

Small - P1,000.00
Medium - P2,000.00
Large - P3,000.00

Other Fees Certified copy of certificate of accreditation - P500.00

Any other Certifications - P100.00
2. DOTC/LTO Schedule of Fees (for authorization)

Application Fee - P300.00

Basic Authorization Small - P3,000.00

Medium - P4,000.00
Large - P5,000.00

Annual Authorization Fee

Small - P1,000.00
Medium - P2,000.00
Large - P3,000.00

Other Fees Certified copy of certificate of authorization - P500.00

Any other certifications - P100.00
What are the prescribed testing equipment for a PETC?
The basic testing equipment are as follows:

Gas analyzer (for gasoline-driven vehicles)

Opacimeter (for diesel-driven vehicles)

All emission testing equipment should be properly calibrated. All must be certified by the DENR.
Are there any other standards / rules prescribed in PETC application?
1. A testing lane (work area) should be within a permanent site with a maneuvering area of at least 6 meters
wide and 6 meters long. A PETC may have any number of testing lanes.
2. PETCs should employ an adequate number of TESDA-certified Motor Vehicle Emission Control Technicians
(MVECT). Other personnel performing specific tasks must be qualified on the basis of appropriate education,
training, experience and/or demonstration skill.
3. PNS ISO/IEC 17025 Compliance
o All PETCs must comply with the provisions of PNS ISO/IEC 17025 within one year from its initial
accreditation and authorization. This ensures that quality of services, expertise and facilities are
consistent with international standards of testing laboratories
What is the estimated capital outlay needed to put up a PETC?
A business enterprise would need an estimated P1.42 million to set-up a PETC, broken down as follows:
Item/Cost

Equipment - 500,000*

Rent (1 year) - 120,000

Supplies (1 year) - 60,000

Personnel salaries - 264,000

Other expenses - 105,600

Total - P1,049,600
* Minimum cost of equipment
How often should a PETC renew its Certificate of Accreditation and Authorization?
A Certificate of Accreditation and Authorization is valid for three (3) years. There are grounds for cancellation specified

in Article 15 of the DTI-DOTC Joint Administrative Order (JAO). Applications for renewal of accreditation and
authorization must be filed within three (3) months prior to its expiry date.
What are the prohibitions stated in Article 15?
The following are grounds for cancellation of Certificate of Accreditation and Authorization:

Operating a PETC or engaging in emission testing business without proper accreditation and/or authorization.

Violation of condition/s of accreditation and/or authorization.

Misrepresentation for purposes of securing a license or renewal (giving false statements in the application or
submitting falsified documents).

Obstructing (or attempting to do so) inspection by the Assessment Team or visits by the authorized
representative/s of DTI or DOTC/LTO.

Engaging in activities outside the scope of accreditation and/or authorization.

Tampering of test results or entering any false information about the vehicle being tested.

Any acts similar to the ones cited.

What are the sanctions for PETCs found guilty of committing the prohibited acts?
The following are sanctions to be imposed by DTI (upon due notice and hearing):

A fine of not less than P30,000; or

Cancellation of license of both the technician and the center; or

Both, as may be determined by DTI;

Forfeiture of bond

Sales Promotion
What should sponsor / advertiser secure in conducting sales promotion?
1. DTI-NCR number
2. Duration of the promotion
3. Complete mechanics
4. Criteria, disqualification and other rules that maybe imposed by sponsor/s
5. Required entry form
6. Manner, date, place and time for selection or determination of winners
7. Claim period and redemption center
8. Requirements for claiming prizes
9. Tax provisions
What is a DTI-NCR number?
This pertains to the number assigned by the DTI-NCR for approved nationwide sales promotion. This is located at the
lower right side of the ad material released by the promoting agency. Presence of this permit number means that the
sales promotion has been approved / supervised by DTI-NCR.
What are the coverage of the DTI-NCR permit?
1. all sales promotions campaigns conducted within the Philippines
2. consumer product or services
3. consumer credit
4. consumer service
5. nationwide beauty contest
6. home solicitation sales
Exemptions:
a. sales promotion campaigns sponsored by the government, or any of its agencies, in line with its government
functions
b. imported products under promotion in the country of origin not covering the Philippines
c. civic groups sponsored intended among members
*Food, drugs, devices, cosmetics, and hazardous substances are covered by Bureau of Food and Drugs (BFAD).
What do you mean by duration of the promotion?
This means the period covering the first to the last day that a participant may join or send or present entries to a sales
promotion campaign.
Shall cancellation of a sales promotion be allowed?
An ongoing sales promotion should not be allowed to be cancelled, except upon approval from the DTI-NCR.
Cancellation shall be allowed only before the ad announcement, and, in case ad announcement is already released,
before entries are made available to the public.
On what grounds shall cancellation of ongoing promotion be allowed?
Cancellation of ongoing promotion may be allowed on any of the following grounds:
1. final judgment of insolvency of the sponsor/s from a court of proper jurisdiction

2. occurrence of any fortuitous event that will make it impossible for all sponsors to deliver the products or services to
be used in the promotion
If a promotion is approved to be cancelled and there are already winners before the approval, do the
winners have the right to claim their prizes?
Yes. Those who had already won in the promotion before the approval of its cancellation shall be granted their prize/s.
What is a complete mechanics?
This means the rules, procedure and criteria by which one may participate and win and by which the winner may claim
his prize in a sales promotion campaign.
Who shall be disqualified from joining a sales promotion?
1. The sponsor, promoter, advertiser, participating outlets and their employees including their relatives up to the
second civil degree of consanguinity or affinity.
2. Persons reporting regularly to the promoter, sponsor or advertiser under a contract or service and who, by the
nature of the service they render may have a direct and personal knowledge of the promotion
3. In case of promotions involving bank deposits, the Bangko Sentral ng Pilipinas (BSP) shall prescribe the degree of
relationship whch shall be covered by the disqualification.
What is a required entry form?
This may be any proof of purchase, receipts, coupons, tickets, wrappers, labels, packaging, caps, crowns, raffle
numbers, game cards or any other instrument identifying the participant and conforming to the specifications or
requirements as laid down in the mechanics.
What minimum information should be written on the raffle stub?
1. Full name of participant
2. Complete address, and telephone number, if any
3. Signature
*Erasures or any form of tampering shall invalidate the entry stub / form.
When should the selection or determination of winners take place?
The date of draw shall not be more than two (2) weeks after the deadline of submission of entries.
Can grand draws or final selection of winners be postponed?
Grand draws or final selection of winners may only be postponed once, but not more that 2 weeks upon the approval
of DTI-NCR.
Can a participant win more than once?
A participant may win more than one prize, unless expressly disallowed in the mechanics of the promotion.
If a participant won more than once, can he claim both prizes?
If winning more than once is disallowed in the mechanics of the promotion. The winner shall be entitled to the bigger
prize.
If the winner is not present to choose the prize, what prize shall be given to him?
The winner shall automatically be assigned the higher prize.
What shall be done to the lower prize not won by disqualified winner?
The prize shall be re-drawn or other winners will be selected.
How does fairness on the conduct of the sales promotion be guaranteed?
1. The DTI representative would be present and will verify guarantee of delivery of: the mechanics, entry forms,
prizes, advertising materials and control measures approved prior to issuance of permit
2. A DTI representative must be invited to the following sales promotion activities prior to implementation:
a. Verify computer program for registering participants, accepting entries, assigning raffle numbers /
points and tabulation of points.
b. Verify computer program for determination / drawing of winners.
c. Witness the printing, sealing and seeding of game cards with non-winning game cards.
d. Verify the winning game stubs before mixing with non-winning game stubs before placing inside draw
boxes.
e. Verify game paraphernalia.
3. A DTI representative must be invited to be present and witness the following:
a. Opening of drop boxes and drawing / determination of winners
b. Judging of entries
How are winners of a raffle promo being notified?
Winners should be announced and / or published in the same manner that the sales promotion was announced and / or
published, not later than 2 weeks after determination of winners.

Shall all winners be notified in writing?

In all cases where the amount of the prize is five hundred pesos (P 500) or more, the winners shall be notified in
writing by registered mail or any communication where proof of notice can be verified. The list of winners' names and
addressed received by the Post office shall be submitted to DTI.
Until when can winners claim their prizes?
Winners shall have at least sixty (60) days from the date of the publication or announcement or notification of winners,
whichever comes last, within which to claim their prizes unless a shorter period is allowed by the department taking
into account the nature of the sales promotion, mechanics and prizes involved.
Will prizes be forfeited after claim period has lapsed?
Yes. After the claim period has lapsed without a claimant, the Department shall be immediately informed. Prizes may
be forfeited in favor of the sponsor only upon written approval of the Department.
How shall winners of raffles or promotions requiring raffle tickets or stubs claim their prizes?
Winners of this type of promotions may claim their prizes by presenting their copy or portion of the raffle ticket or stub
and / or any document which the sponsor may reasonably require as sufficient to establish the identity of claimant.
Can a winner claim his prize if his raffle stub is lost?
Yes. If a raffle stub is lost, the winner will execute an affidavit of loss. He should submit this together with any of the
following documents:
1. affidavit of at least two (2) disinterested persons attesting to his identity
2. certification of the barangay captain that the winner is really a resident of that place
3. other identification papers like office / school ID, SSS or GSIS number, driver's license, passport, etc.
How can a minor or incapacitated claim his prize?
In case where a winner is a minor as evidenced by a birth certificate or is incapacitated, the parent or guardian
exercising paternal authority over him may claim the prize in his behalf.
If prizes are in form of trips or scholarships, can the winners ask for these prizes to be converted /
transferred?
Prizes in form of domestic or domestic trips and with or without accommodations and scholarships, shall either be
transferable, convertible to cash or both. In such cases, the cash equivalent of the prize shall be disclosed in the sales
promotion campaign announcements, publications and advertisements.
What is the remedy available for the winner when the sponsor failed to deliver a prize which is in kind?
In cases where the sponsor is not able to deliver a prize promised which is n kind, the winner may be given its cash
equivalent as appearing in the application for permit to conduct the promotion and approved by the department.
However, if the sponsor offers to deliver another prize which is also in kind, he may do so with the consent of the
winner.
Who should pay the tax for the prizes?
Unless otherwise specified, the winner shall pay withholding tax.
How much withholding tax shall be paid?
The amount of tax shall be 20% (in excess of P 10,000.00) of the acquisition cost of the prize.
What must a person do if he/she intends to conduct a sales promotion?
Any person intending to conduct any form or scheme for a sales promotion campaign of a consumer product, service,
or credit shall first secure a permit from DTI-NCR at least thirty (30) days before the sales promotion starts.
What is the requirement if a sales promotion campaign has several sponsors?
A sales promo campaign with several sponsors may be filed for a single sales promotion permit. Provided, that all
sponsors shall sign the sales promotion permit application, or submit a true copy of written agreement among the
sponsors that they are the subsidiaries of the sales promotion campaign.
What is the degree or extent of a sponsor's participation and responsibility?
The degree or extent of a sponsor's participation and responsibility may be stated in the application or the agreement.
When there's no indicated limitation of liability or responsibility, each sponsor shall be deemed fully responsible for the
sales promotion campaign.

What specific information should be included in the application?

The application for permit to conduct a sales promotion campaign shall be in the form required by the Department,
containing the following information and documents:
1. the complete name, address, and telephone number of the sponsor(s) of the sales promotion campaign;

2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
15.
16.
17.
18.
19.
20.
21.
22.

the complete name, address, and telephone number of the sales promotion agent or agency, if any;
the complete name, address, and telephone number of the person/s who may be contacted by the participants
of the promotion for inquiries, complaints, and similar purposes;
the consumer product, its brand, classification and/or size, or the kind and extend of the consumer service or
credit to be promoted;
proof of registration of the product, or business being promoted if the same is required by any government
agency;
the geographical area to be covered;
the type or nature of the sales promotion campaign to be undertaken;
the sales promotion period;
the target participants and the required qualification, if any;
the type of announcement and/or information dissemination that will be used for the sales campaign or
promotion, including the text, substance, and information to be disseminated to the public;
the mechanics and the criteria for participating and winning in the sales promotion campaign;
the procedure for predetermination of winning entries, and if applicable, the computer program to be used;
the plan for seeding or qualifying entries, paraphernalia or predetermined winning entries;
the date, time, and place for auditions, try-outs, pre-qualification and/or qualification of participants to the
promotion, if the same is required;
the security marks, if any, or the nature thereof in the entry forms and/or paraphernalia to be used in the
promotion. Their purpose, the method of their verification, and a sample specimen of such entry or
paraphernalia, containing such security mark;
the deadline of submission of entries
the specific city, municipality, and province and number of drop boxes or the person and address where entry
forms may be sent;
the amount of prizes for each category of winners. If the prizes are in kind, the description, brand, size, model,
or make, and their market value of the time of application;
whether a prize in kind is transferable, convertible to cash or both;
whether the required taxes for the winners shall be shouldered by the sponsor/s or by the winners. In case of
the latter, whether the same shall be withheld by the sponsor/s;
time and dates within which the prize can be claimed, after the termination of the sales campaign or
promotion- which shall not be less than sixty (60) days from notification or publication, whichever comes last;
the requirements and/or the type of identification which will be required to claim the prizes

Are there exemptions from permit requirements?

Permits for the following sales promotion activities need not be applied for:
1. Competitions, except beauty contest conducted nationwide, which do not require the purchase, lease or payment of
any consumer product or service or availment of consumer credit;
2. Parlor games, whether held live during stage shows, parties, special occasions and/or utilizing any form of mass
media. Provided, that the home partner of the winner is not required to purchase or lease any consumer product,
service, or avail consumer credit facility, including the sending or presentation of any proof;
3. Door prizes given to patrons of concerts, stage shows, stage plays, film shows, and similar activities;
4. Instant sales promotion campaigns;
5. In store promotions, such as, but not limited to price reduction promotions, discount sales and premium-in pack in
which no advertisements are made on such sales promotion campaigns.
*Sales promotion campaign exempted from permit requirement must conform to the pertinent rules and regulations
on sales promotion campaigns.
What are the prohibited acts in the conduct of sales promotion?
1. Gambling and wagering schemes: No gambling or wagering scheme, as prohibited under existing laws shall be
allowed in the conduct of any sales promotion campaign.
2. Use of Medical Prescriptions: No sales promotion campaign using medical prescriptions or any part of it, as
attachment shall be allowed.
3. Other prohibited activities:
a. No act, product, scheme, or activity prohibited or declared illegal under the law shall be allowed in the conduct of
the sales promotion campaign. If an imported product is under international sales promotion, yet such promotion does
not cover the Philippines, the local distributor of the product shall indicate a notice, accompanying the product that the
ongoing international sales promo campaign is not applicable in the Philippines.
b. No person shall directly or indirectly tamper with the entries and/or paraphernalia in a sales promotion campaign
nor influence the results, or perform any act to the disadvantage of the legitimate participants and/or winners.

May an approved sales promotion campaign be discontinued or cancelled?

An approved sales promo campaign may be terminated or cancelled by the sponsor/s at its initiative, provided that no
information dissemination and advertising were made. Written notice must be sent to the Department before the
cancellation of the sales promotion campaign.

Can a sales promotion be cancelled after publication, but before the promotion starts?
If any announcement, information, dissemination, or advertising were made, and the promotion has not yet started,
the sale promotion may be cancelled or terminated by written notification to the Department. Announcements of the
cancellation must be immediately disseminated in the same manner, frequency, and medium as the promotion has
been announced, published, or advertised before the originally intended promotion period starts.
How is voluntary cancellation of ongoing promotion made?
Only DTI can permit the cancellation of ongoing sales promotion. An ongoing sales promotion may only be cancelled
based on the following grounds:
1. A final judgment of bankruptcy of the sponsor/s from a court of proper jurisdiction;
2. Unexpected events that will make it impossible for all the sponsors to continue to deliver the products or services.
Provided, however, that those who had already won in the promotion before approval of its (sales promo) cancellation
shall be given their prizes.
What specific information should be included in the announcements, publication or advertisement of the
mechanics of the sales campaign?
The time, dates, and places of the following events in the sales promotion campaign shall be clearly stated in the
announcement, publication, or advertisement of the mechanics of the sales campaign:
1. The promotion period;
2. The deadline for submission of entry forms or entering as participant in the promotion;
3. The location of drop boxes for entry forms and/or the address where entry forms may be sent, or where one may
inform the sponsor of one's intention to participate in the promotion;
4. The time, date, and place of the pre-draws, pre-qualifications, try-outs, or auditions to qualify as participant to the
sales promotion;
5. The time, date, and place of preliminary draws, preliminary selection or predetermination of winners of the
promotion;
6. The time, date, and place of final draws or final determination of winners of the promotion;
7. The time, duration, and place where prizes may be claimed by the winners.
What are the other requirements for a sales promotion campaign?
1. Availability of entry forms to participants: Entry forms shall be made available in a specific place, during office or
store hours, unless other ways of obtaining them are specified in the mechanics of the promotions.
2. Deadline of submission of entries: The deadline of submission of entries shall be at least one (1) day before the date
of the draw or selection of winners unless, otherwise, the scheme utilized makes the one (1) day period impractical.
3. Draw dates, date of selection of winners: Draw dates or the date for the selection of determination of participants or
winners to a sales promo campaign shall not be more than two (2) weeks after the deadline of the submission of
entries, the pre-qualification, audition, or try-out,
4. List of winners: A list of the names of the winners, their addresses and corresponding prizes, shall be furnished to
the Department immediately after they were drawn or selected. Except in the case of sales promotion campaigns
involving prizes with very small monetary value, or those exempted from applying for a permit.
When is the presence of participants required in the selection of winners?
The presence of participants shall not be required in the determination of winners of any sales promotion campaign
except in the following cases: 1. Instant sales promotion;
2. In the case of competitions, games or parlor games where the presence of the participants is essential to determine
the winner; and
3. Such other forms of sales promotion campaigns, the nature of which demand the presence of the participants;
What is the general rule on the duration and extension of promotion period?
The sales promotion campaign shall have a duration of not more than a year, may be extended to a maximum of six
(6) months upon approval by DTI-NCR.
May a sponsor or promoter make some changes in the conduct of sales promotion without the knowledge
and approval of DTI?
No. Any changes on the conduct of sales promotion such as extension or delay in the dates of the starting; termination
and determination of selection of winners; venue of draws, auditions, and try-out; duration, mechanics, procedures or
terms and conditions of sales promo campaigns; qualifications required of the participants; criteria in the
determination and selection of winners cannot be made without the knowledge and approval of DTI. Changes shall be
published, announced or advertised at least twice before such change takes effect.
What is the rule on the postponement of extension of grand draws or final selection of winners?
Grand draws or final selection of winners may only be postponed once, and shall be held within the next two (2) weeks
after the date of the previously scheduled grand draw.
When can a winner claim his prize?
A winner shall have at least sixty (60) days from the date of publication, announcement, or notification of winners to
claim his prize.

How long can a sponsor hold price reduction promotions?

Any price reduction promotion on any consumer product or service shall not exceed three (3) months. However, in
case of closing-out sales, the period shall be six (6) months.
In a price reduction promotions with a period, is the use of the phrase while supply lasts allowed?
No. The sponsor shall be liable throughout the promotion to ensure the supply is sufficient until the end of the
promotion period.
What is the liability of the sponsor / promoter in case the prize was mistakenly given to a holder
presenting a fake form?
The sponsor who committed a mistake by giving the prize to a holder presenting a fake entry form, should give the
same prize to the holder of the genuine entry form.
What is the rule in disseminating / advertising information regarding sales promotions campaign?
All advertising / information materials indicating or describing the mechanics of the promotion shall conform with the
mechanics approved by DTI. Sales promo campaigns shall include in their advertisement, publication, or
announcement the phrase Per DTI-NCR Permit No. ___, Series of (Year) with the corresponding control number
provided by the DTI.
Can prizes, premium or benefit under a sales promotion campaign be reduced in quality and quantity?
No reduction in quality or quantity in the product or services under sales promo nor in the prizes, premium or benefit
granted shall be allowed.
What are the guaranties, warranties and remedies available to consumers under a sales promotion
campaign?
Buyers of products and services sold under a sales promotion, as well as winners, with reference to their prizes shall
enjoy the same guaranties, warranties, and remedies provided for under R.A. 7394 or the Consumer Act of the
Philippines and other pertinent laws.
What are the sanctions for violation of these provisions?
Any of the following administrative sanctions provided under Article 164 of the Consumer Act of the Philippines may be
imposed even if not asked in the complaint:
1. issuance of cease and desist order
2. undertaking of compliance from the respondent;
3. imposition of administrative fines ranging from five hundred pesos (P 500.00) to three hundred thousand pesos (P
300,000.00)

Price Tag Act

1. What is the provision on Price Tag under R.A. 7394?
The provision on Price Tag, under R.A. 7394, requires that all consumer products sold in retail to the public shall bear
an appropriate price tag, label, or marking indicating the price of the article. Such consumer products shall not be sold
at a price higher than that stated in the price tag.

2. What is a price tag?

A price tag is a label attached to a commodity stating the price at which it is offered for sale.

3. Why is there a need for price tag?

To provide buyers with adequate information and guide to enable them to compare quality and prices of goods, and
patronize stores selling quality products at low prices. To discourage and minimize haggling which is a waste of time
and energy of both buyer and seller. To expedite transactions and enable both the buyer and seller to use the time and
energy for more productive endeavors.

4. What are the characteristics of a Price Tag?

A price tag should: - Be clearly written; - State the price of the commodity per unit (piece, package, pair, dozen, set,
kilogram, meter, liter, etc.) in pesos and centavos, Philippine currency, except when a law or regulation allows
consumer products to be sold in foreign currency as in the case of duty free shops; and - Bear no erasures or
alterations of any sort.

5. When are erasures or alterations in price tag allowed?

Erasures or alterations are allowed only in price reduction sales promotion campaigns.

6. Is the use of codes in price tags allowed?

Generally, prices of consumer products and services shall not be written in code. However, the following are the
exceptions: - If the codes are used in addition to price tags, labels, markings, or price lists; - If the codes are used in
combination with shelf pricing which when scanned will show the price. This exception shall be employed only by
establishments which comply with the requirements under Department Administrative Order No. 9, Series of 2002.

7. What are the minimum terms of express warranty under the Consumer Act that shall be given by a
seller or manufacturer?
The following shall be stated in an express warranty: - the terms of warranty, written in clear and readily
understandable language; - the warrantors identity; - the partys identity to whom the warranty is extended; - the
products or parts covered; - the warrantors action plan in the event of a defect, malfunction or failure to conform to
the written warranty; - the directive to the consumer to avail of the right which accrue to the warranty; - the period
within which, after notice of defect, malfunction, or failure to conform to the warranty, the warrantor will perform any
obligation under the warranty.

8. What are the requirements for establishments intending to use codes in combination with shelf
pricing?
Establishments intending to use codes in combination with shelf pricing shall be allowed to use such pricing system
only upon meeting the following: The establishment should use itemized receipt or cash register tape which
states the description, size, quantity, and individual price of the consumer goods purchased. Each establishment
shall install at least one Price Verification Counter (PVC) or similar electronic system strategically located in the
establishment, provided that in case the establishment structure is multi-storey, at least one PVC shall be installed per
storey.

9. When is a price list allowed?

When a consumer product is too small or the nature of which makes it impractical to place a tag thereon; and in case
of consumer services.

10. What are the documents to be presented to the seller or vendor in case the consumer opts to have
the defective product repaired, replaced, or refunded under an express warranty?
- The consumer should present a copy of the warranty card or documents and the official receipt of the product sold or
bought.

11. Is a price tag required on samples or dummies on display?

Yes, samples or dummies of products offered for sale on retail when displayed within the retail outlets shall also bear
the prices of products which they represent.

12. Is price tag required for lumber?

Yes, in the case of lumber sold, displayed or offered for sale to the public, the same shall be tagged or labeled
indicating thereon the price and the corresponding official name of the wood.

Balikbayan Boxes

What is the typical transport flow of balikbayan boxes?

Below is a Typical Transport Flow of Balikbayan Boxes:

Overseas Filipinos usually engage the services of a foreign consolidator/ principal sea freight forwarder in sending their balikbayan
boxes to their relatives in the Philippines.
The foreign consolidators collect door-to-door charges from the OFWs as senders. These charges include the fees for a shipping line/
carrier, terminal storage, duties and charges, and the accredited Philippine agent/ local freight forwarder.
The balikbayan boxes are delivered by accredited Philippine agents/ local sea freight forwarders to consignees or recipients in the
Philippines.

What is the problem/ issue on the delivery of balikbayan boxes?

There are instances when foreign consolidators/ principal sea freight forwarders do not remit a portion of their collected charges to their
accredited Philippine agents/ local sea freight forwarders to prompt the release and delivery of balikbayan boxes.
When necessary funds are not remitted to accredited Philippine agent/ local freight forwarders, the shipments or the balikbayan boxes
with the Bureau of Customs (BOC) will not be released and will not be delivered to consignees/ recipients.

What office/ agency addresses the said problem/ issue?

The Philippine Shippers Bureau (PSB) of the Department of Trade and Industry (DTI) operates the accreditation scheme for sea freight
forwarders based on its Administrative Order No. 6, Series of 2005.
The DTI-PSB holds both the foreign consolidator/principal and its Philippine agent/freight forwarder jointly and severally liable for the
delivery of cargoes to the consignees.

What are the approaches to the issue of undelivered balikbayan boxes?

Prevention (How to Avoid Being Victimized)
Enhanced Information Campaign
Advisories/Alerts
Tips on Sending Balikbayan Boxes
Blacklist

OWWA, BOC, DFA, Embassies/Consulates, OFW Orgs, DTI Commercial Attaches, DTI Regional/Provincial Offices, Consumer
Agencies of Foreign Governments, Freight Forwarders Regulatory Agencies of Foreign Government.
Cure (Assistance to Complainants/Victims)
Formal Charges/Sanctions versus Erring Freight Forwarders (both local and foreign)
Endorsement to Law Enforcement Authorities
Coordination with the Bureau of Customs and other concerned government agencies.

If the Philippine agent/freight forwarder holds delivery of balikbayan boxes because its foreign principal fails to remit
the necessary funds therefore, what can DTI-PSB do to help the consignees?
DTI-PSB shall order the Philippine agent/freight forwarder to deliver the cargoes to their rightful owners (consignees) without any delay.
Failure of the Philippine agent/freight forwarder to deliver the cargoes immediately shall constrain DTI-PSB to file a Formal Charge
against the freight forwarder for the revocation of its accreditation (if the forwarder is PSB-accredited) or a Cease and Desist Order (if
the forwarder is not PSB-accredited) as well as applicable fines as provided in PSB A.O. 6, series of 2005.

How does one file a complaint with DTI-PSB?

Complainants should submit a written complaint with documentary evidences such as official receipts, cargo receipts, bills of lading,
shippers declaration and way bills. They can file their complaints either at PSB Office or fax at (02) 751.3305 or email
[email protected] or call (02) DTI Direct at 751.3330.

What sanctions/penalties may DTI-PSB impose on freight forwarders violating PSB policies on balikbayan boxes?
PSB may impose monetary fines, suspension or cancellation of accreditation pursuant to A.O. No. 6 series of 2005.

What are the common complaints received by DTI-PSB regarding balikbayan boxes?
Most of the complaints on balikbayan boxes are:
undelivered balikbayan boxes
pilferage of balikbayan box
overcharging
damaged cargo

How much are the shipping rates of balikbayan boxes? How long is the transit time from origin to destination?
There are various rates for shipping of different sizes of balikbayan boxes. Below is a sample rate for a standard size balikbayan box
(24x24x24) and transit time from origin to destination.

Where are most balikbayan boxes coming from?

OFWs and other Filipinos living abroad from these countries have the large number of packages sent through balikbayan boxes.
1. Middle East (Saudi Arabia, UAE, Kuwait and Qatar)
2. USA
3. Hong Kong
4. Singapore
5. Italy
6. UK
7. Korea
8. Taiwan

What items that should not be sent through balikbayan boxes?

The following items are not allowed to be included in the box:
1. currencies, checks, money orders and travelers checks
2. jewelries
3. firearms, ammunitions and explosives
4. prohibited drugs and other substances

5. pornographic materials, gambling cards and toy guns

6. pirated products i.e. dvd, cd, tapes, etc
7. items of commercial quantity

What are the tips in shipping balikbayan boxes?

The following are few tips to ensure that your balikbayan boxes reach its destination.
1. Organize the contents of your balikbayan box.
2. Book your balikbayan boxes only with PSB-accredited sea cargo consolidator / freight forwarder companies with clean records.
3. Be wary of exceptionally very low rates.
4. Declare the contents of your shipment.
5. Secure transport documents such as cargo receipt (or Official Receipt) for fees paid, and Bill of Lading a document issued by a
transportation carrier to the shipper as proof that they have received the cargo shipment and have placed them on board a particular
vessel for delivery to a particular destination.
6. Get the name and contact details of the forwarders agent in the Philippines.
7. Monitor the movement of your cargo from origin to destination to make sure it is being shipped and delivered.
8. Inform your consignee to check your cargo with the Philippine freight forwarding agent even before it arrives.
9. If you encounter pilferage or lost item, or non-delivery, file an immediate claim or complaint with the freight forwarders customer
service. You may also lodge your complaint directly to the Philippine Shippers Bureau at 2nd Floor, DTI Bldg., 361 Gil Puyat Avenue,
Makati City or fax at (02) 751.3305 or email at [email protected] call DTI-Direct (02) 751.3330 or 0917.834.3330 for
assistance.
Accreditation of Repair Shops
Why do I have to file for accreditation of my service and repair shop?
In compliance to Presidential Decree 1572, all Service and Repair Shop owners, shall apply for the accreditation of their
respective service and repair shops.
Service and Repair shops are being classified as follows:
*For Automotive and Heavy Equipment
ONE STAR SHOP - an independent shop doing specialized jobs for automobiles such as wheel alignment, wheel
balancing, etc. A car accessory shop which merely installs the car accessory/ies bought from it, (which may include the
service of detaching the previous car accessory in order that the said bought car accessory can be installed) is not
included I this definition. It must meet other requirements prescribed by the regional office for a ONE STAR SHOP.
TWO STAR SHOP - an independent shop or a gas station doing vehicle service work. It must meet the other
requirements prescribed by the regional office for a TWO STAR SHOP.
THREE STAR SHOP - an independent shop, with a minimum of ten (10) working stalls, and must meet the other
requirements prescribed by the regional office for a THREE STAR SHOP.
FOUR STAR SHOP - a non-franchised dealer, or a non-authorized sub-dealer. It must have at least twenty (20) working
stalls, and must meet the other requirements prescribed by the regional office for FOUR STAR SHOP.
FIVE STAR "B" SHOP - a Factory Authorized Representative, or a Franchised Dealer, or a Sub-Dealer. It must have a
maximum of twenty (20) and a minimum of eleven (11) working stalls, and must meet the other requirements
prescribed by the regional office for a FIVE STAR "B" SHOP.
FIVE STAR "A" SHOP - a Factory Authorized Representative, or a Franchised Dealer, or a Franchised Branch, or an
Authorized Sub-Dealer. It must have at least twenty-one (21) working stalls and must meet the other requirements
prescribed by the regional office for a FIVE STAR "A" SHOP.
What are the procedures/requirements for accreditation of service and repair shops?
Procedures in Applying for Original/New Application
1. Follow the steps in Registering the Business Name.
2. Upon approval (pre-approved) of preferred Business Name, proceed to the Accreditation Counter to get an
application form for Accreditation of Service and Repair Shop.
3. Accomplish the original application form and attach supporting documents and requirements listed in the form.
4. Submit accomplished original application form and requirements to the Accreditation Counter for evaluation.
5. If the documents are in order, you will be issued an Order of Payment (OP) slip to pay the required accreditation
fees.
6. Pay the required accreditation fees at the Cashier. After paying at the cashier, please proceed to the Accreditation
Counter and submit all the documents including the Official Receipt of payment of the accreditation fee.
7. Proceed to the waiting area and wait for your turn to be served.
Requirements for Original/New Application
1. Submit copy of Insurance Policy and Official Receipt covering full payment of premium.
2. The Comprehensive Insurance Policy must include property damage to include the customer's properties entrusted
for repair/service.
3. Fire Insurance Policy is acceptable provided that it includes damage or loss of properties accepted for repair.

4. Bring with you the original copy of Insurance Policy and Official Receipt (note: Statement of Account or invoice is not
acceptable for presentation.)
5. Exemption to Insurance Policy requirement - (In case mechanical works or services are rendered on site or on the
job site.)
6. The insurance policy must show that the insured is the pre-approved business name and given address in the
business registration application. In case there's an error in the insured name and business address, please secure an
amendment from your insurance company by requesting an endorsement letter for the same.
7. The period of insurance coverage is one (1) year. The insurance policy must jive with the accreditation period of the
shop, i.e. from the date of application to December 31st of the same year.
8. The minimum amount of insurance coverage are as follows:
a. For motor vehicle/heavy equipment/office machine/data processing equipment
5 star service & repair shop - P500,000
4 star service & repair shop - 400,000
3 star service & repair shop - 200,000
2 star service & repair shop - 100,000
1 star service & repair shop - 30,000
b. For automotive engine rebuilding machine shop/engineering machine
shop/electronics/electrical/airconditioning & refrigeration.
5 star service & repair shop - P500,000
4 star service & repair shop - 400,000
3 star service & repair shop - 200,000
2 star service & repair shop - 100,000
1 star service & repair shop - 30,000
c. All other classification or categories, a minimum of P 30,000
9. Service firms shall guarantee workmanship and replacement of spare parts for a period of not less than 90 days
which shall be indicated in the pertinent invoices. Thus the owner of the shop must accomplish the warranty or service
guarantee undertaking stated at the original application and have it notarized.
10. List of shop employees and position
11. List of shop tools and equipment and value SEC Certificate and Articles of Partnership / Corporation (for Partnership
and Corporation only - certified copy for new applicants)
Additional requirements for three to five star categories:
* Photos of shop - showing front and interior including the facilities and/or equipment therein
* Shop layout with dimensions
* SEC Certificate and Articles of Partnership/Corporation (for Partnerships and Corporation only)
* Original copy of dealership agreement (for five star only)
* Original copy of Performance Bond including receipt of payment (for four and five star only)
Procedures / Requirements for Renewal of Accreditation
1. Fill up Renewal Application form.
2. Submit copy of Insurance Policy (Insurance covers the customer's properties entrusted for service/repair); and copy
of official receipt covering full payment of the premium (Bring original copy of insurance policy and official receipt)
3. Check your insurance policy. Insurance policy coverage must be one (1) year and expiration must be December 31st
of the same year. In case your insurance policy expires before December 31st of the registration year, secure an
insurance policy coverage up to December 31st thru an endorsement letter from the insurance firm. Submit a
photocopy of the endorsement letter and official receipt for the extension of the coverage. (Bring original copy of O.R.
and endorsement letter.)
4. Exemption to Insurance Policy requirement (In case mechanical works or services are rendered on site, an affidavit
shall be executed that services are undertaken on site or on the job site).
5. Submit a photocopy of the latest copy of Certificate of Accreditation.
6. Copy of Business Name Registration (in case your Business Name Registration expired, you must also renew your
Business Name Registration).
7. For four or five star service and repair shops, original copy of Performance Bond including receipt of payment of
Official Receipt
8. Submit accomplished Renewal Application Form and requirements to the Accreditation Counter for evaluation.
9. If the documents submitted are in order, you will be issued an Order of Payment (OP) slip to pay the required
accreditation fees.
10. Pay required renewal accreditation fees at the Cashier.

The Eight Basic Consumer Rights

The Right to Basic Needs
The first consumer right is THE RIGHT TO BASIC NEEDS which guarantee survival, adequate food, clothing, shelter, health care,
education and sanitation.
What to do:

Prioritize your needs

Look for quality, not quantity
Be quality conscious, not brand conscious
Do not engage in panic-buying
In times of crisis/calamity, be vigilant in ensuring that basic commodities are available in the market

The Right to Safety

The second consumer right is THE RIGHT TO SAFETY which is the right to be protected against the marketing of goods or the
provision of services that are hazardous to health and life.
What to do:

If you have sensitivity to a certain ingredient, it would be very beneficial if you read all labels and product circulars before using
a certain product

If you are in a store and have doubts about the product's effectiveness, ask for a person who knows how the products works or
how to operate

Keep certain products out of the reach of young children. Watch out for special warning signs in the label of the product like
"NOT SUITED FOR CHILDREN BELOW FOUR(4) YEARS" or "POISON: For external use only etc."

Before buying products especially in cases when only large containers are available, it would be best if you ask for a sample or
tester

Be on guard regarding products which are found to be hazardous, you can scan newspapers regularly for new bits on this
topic

The Right to Information

The third consumer right is THE RIGHT TO INFORMATION which is the right to be protected against dishonest or misleading
advertising or labelling and the right to be given the facts and information needed to make an informed choice.
What to do:

Before purchasing a product, it is very important for you to read the label carefully so that you would be able to know its use,
content (chemical ingredients), number of pieces, how to care for the product

Before signing any document like warranties and guarantees, credit items or services contacts, it is important to read and
understand all provisions in the documents especially the fine prints

It is very important to read newspapers, buying guides, magazines before purchasing a product. Also, consult with friends who
you know have purchased a similar product

If you need to clarify something regarding the use of the product, don't hesitate to write the company so that you can obtain a
detailed information

It is imperative to look for the name and address of the manufacturer in case the need arises.
The Right to Choose
The fourth consumer right is THE RIGHT TO CHOOSE which is the right to choose products at competitive prices with an assurance of
satisfactory quality.
What to do:

Specify what you really want. The biggest size may be cheaper but it may not be what you need.

Canvass price before purchasing a product or signing a contract.

Read the manuals or instructions carefully to be able to compare one product with another because in this way, you will not
miss the fine prints which might contain the information you need to determine which product would serve you better.

If product tester are available, be sure to try one.

Be wary of special offers like free items or buy 2 take 1 free. Compare them with the regular priced items to be sure that you
are not paying for the said free items.

The Right to Representation

The fifth consumer right is THE RIGHT TO REPRESENTATION which is the right to express consumer interests in the making and
execution of government policies.
What to do:

Read newspapers, bulletin boards in private and government offices, especially in your locality for announcements of public
hearings

Take time to attend public hearings or even meetings conducted in your area wherein consumer issues are being discussed.

Be aware of how the consumer laws and regulations are being implemented in your locality.

The Right to Redress

The sixth consumer right is THE RIGHT TO REDRESS which is the right to be compensated for misrepresentation, shoddy goods or
unsatisfactory services.
What to do:

In case you bought a defective product, try going back to the store where you bought the item and look for the Consumer
Welfare Desk.

You may request a replacement, refund or if needed, have the defective item repaired.

If the manager or store representative does not act on your complaint, proceed to the agency which has jurisdiction over your
case.

Bring the necessary documents like complaint letter and a copy of your receipt and other documents you deem are vital for the
mediation.

Be sure to attend the mediation conference.

The Right to Consumer Education
The seventh consumer right is THE RIGHT TO CONSUMER EDUCATION which is the right to acquire the knowledge and skills
necessary to be an informed customer.
What to do:

Scan newspapers, magazines and other reading materials for articles or newsbits which educate consumers on how to get the
best value for their peso.

Involve yourself in public hearings or even meetings conducted in your area wherein consumer -related issues such as access
to basic goods and services, product quality and safety, sustainable consumption and the like are being discussed.

Participate in seminars, conferences and fora conducted by government agencies, consumer groups and business / industry
sector regarding news and regulations for consumer welfare.
The Right to a Healthy Environment
The eight consumer right is THE RIGHT TO A HEALTHY ENVIRONMENT which is the right to live and work in an environment which is
neither threatening nor dangerous and which permits a life of dignity and well-being.
What to do:

Be aware of the kind and extent of pollution occuring in your locality like air polluton, noise / odor etc. so that you would be
able to address the problem

Do your share in caring for our environment by practicing the 3R's of environmental protection:
REDUCE - the source of solid wastes by buying earth friendly products. These are products that could be disposed properly without
harming our environment.
REUSE - products and containers as much as possible.
RECYCLE - because using recycled products and recycling per use, will prolong the life of our landfills