M4: Applying the Proper Remedy for the Enforcement of Consumer Rights and Resolution of Consumer Issues and Disputes

Consumer redress through complaint filing

• Consumers may file complaint letters with DTI, DOH, or DA

• Agencies may investigate and act on violations

• Courts may handle civil or criminal cases

Government agency role in consumer complaints

Agencies investigate complaints within their jurisdiction and take formal action when violations are found

Courts that handle consumer cases

Municipal Trial Court and Regional Trial Court

Types of penalties under consumer law

• Cease and desist orders

• Recall

• Replacement

• Repair

• Refund

• Restitution

• Contract cancellation

• and Fines from PHP 500 to 300,000

DTI national consumer complaint system

National regional and provincial offices accepts complaints through office filing, email, and online portal

Filing location for DTI complaints

Filed in DTI office with jurisdiction or chosen by complainant if parties are in different provinces

Purpose of consumer welfare desks

To resolve complaints inside the business before referral to DTI

Location and staffing of consumer welfare desks

Located near customer relations and manned by store managers or supervisors

Process for bank related complaints

Consumers contact bank officers first and escalate to BSP if unresolved

Ways to file consumer complaints

• By letter or petition

• Agencies may investigate on their own or upon verified complaint

Role of consumer arbitration officers

They mediate conciliate hear and decide complaints and parties may still go to court

Qualifications of consumer arbitration officers

College graduate at least three years in consumer protection and good moral character

Steps in DTI investigation

• Officers schedule hearings

• Receive submissions

• Attempt settlement

• Decide within 15 days after investigation

Administrative sanctions under DTI

• Cease and desist

• Voluntary compliance

• Product recall

• Replacement

• Repair

• Refund

• Reimbursement

• Restitution

• Contract rescission

• Seizure of hazardous products

• and Fines from 500 to 300,000 plus 1,000 per day

When DTI decisions become final

Final unless appealed within 15 days

Grounds for appeal

• Grave abuse of discretion

• Exceeding jurisdiction

• Lack of evidence

• or serious error in findings

Consumer law effect on private agreements

Law applies even if agreements or contracts state otherwise

Prescription period for filing complaints

2 years from transaction or discovery of hidden defect

DTI revised rules of mediation and adjudication

Issued February 7, 2020 and applied “No wrong door” policy

Treatment of complaints against Bagwis awardee

• Endorsed in 2 working days

• Response required in 7 calendar days

• No response means deemed settled

Treatment of complaints against non Bagwis awardee

Notice of mediation issued immediately

Modes of service for notice of mediation

1. Personal service

2. Courier

3. Registered mail or email

Duration of mediation

7 working days extendable up to 10 working days

Effect of mediation agreement

Final and executory with option to request judgment within three working days

Certificate to file action issuance

Issued when no settlement is reached or a party refuses to appear

Effect of repeated failure to appear by complainant

2 absences cause withdrawal without prejudice further absences cause withdrawal with prejudice

Filing of formal complaints (adjudication rule IV)

Filed with DTI FTEB AD in NCR and venue change allowed before position papers

Notice of adjudication contents

Names of DTI office and parties and directive to submit position papers

Service of notice of adjudication

Complainant by email respondent by personal courier or registered mail

Effect of notice of adjudication and complaint

Equivalent to service of summons

Action when respondent cannot be located

Complainant ordered to provide correct address or case archived but revivable

Deadline for position papers

Ten working days from receipt of notice of adjudication

Clarificatory hearing scheduling

Set within 5 working days after position paper period if needed

Purpose of dispute resolution framework

Provide a unified simple and accessible process for consumer complaints

Mandatory nature of mediation

Mediation is required before adjudication and interrupts prescriptive period

Types of consumer complaints covered

Defective products defective services deceptive practices safety labeling advertising no return no exchange repair service firms pyramid schemes lemon law and online business issues

Possible outcomes of mediation

Settlement no settlement withdrawal or issuance of certificate to file action

Steps in adjudication process

Formal complaint assignment of officer notice issuance position papers case submission and decision

Coca Cola Bottlers case principle

Consumers may recover damages for adulterated products despite warranty limits

Mercury Drug case principle

Drugstores must observe highest diligence and are liable for dispensing wrong medication

Coverage of Philippine Lemon Law

Protects buyers of motor vehicles within 12 months or 20,000 km

Remedies under Philippine Lemon Law

Repair, replacement, refund, and daily transportation allowance

Oversight of online business complaints

Handled by DTI IPO National Privacy Commission and other agencies under existing laws