FAQs
Under Republic Act No. 7394 otherwise known as the Consumer Act of the Philippines, it is the policy of the State to protect the interests of the consumer, promote his general welfare and to establish standards of conduct for business and industry. Accordingly, Article 159 of the Consumer Act and Sections 2 and 18 of Executive Order No. 913, mandates DTI to protect the rights of consumers by providing a fair, timely, and professional response to complaints for violations of R.A. 7394 and other Trade and Industry/Fair Trade Laws.
How do I use the system?
You may access the User’s Manual through the following:
For Complainants (last updated October 2024)
For Respondents (Business/Establishment)
Albay ConsumerNet members include the u003cstrongu003eNational Government Agencies (NGAs), Local Government Units (LGUs), and Consumer Groups.u003c/strongu003e
What is Mediation?
Mediation is an intervention by which DTI, through its appointed or designated Mediation Officers, facilitates communication and negotiation between the parties, and assists them in reaching a voluntary agreement regarding a dispute.
Mediation is mandatory in all consumer complaints involving violation of the Consumer Act of the Philippines and Other Fair Trade Laws. It is a condition precedent for the filing of formal complaints for adjudication under Rule IV Department Administrative Order No. 20-02 Series of 2020.
What is the Mediation Process?
Mediation ProcessReceive Complaint
Evaluate Complaint
Issue Notice of Mediation
Conduct Mediation
Mediation may result in either an amicable settlement between parties or failure of mediation leading to the issuance of a Certificate to File Action (CFA) by the DTI Mediation Officer. If CFA is issued, the complainant may proceed to file a formal complaint to the proper office of the DTI for adjudication purposes.
What are the requirements to go through Mediation?
Checklist of RequirementsAccomplished Initial Complaint Form
Any proof of transaction (i.e. official receipt, delivery receipt, invoice, job order)
Other pieces of evidence to support claim
What is DTI’s jurisdiction based on the Consumer Act of the Philippines?
Consumer complaints involving consumer products not falling under the jurisdiction of the Department of Health and the Department of Agriculture referring to the following provisions of the Consumer Act of the Philippines:
Consumer Product Quality and Safety
Deceptive, Unfair and Unconscionable Sales Acts/Practices
Violation for printing “No Return. No Exchange” in the receipts
Chain Distribution Plans or Pyramid Sales Schemes
Consumer Product and Service Warranties
Labeling and Fair Packaging
Liability for Product and Services
Misleading Advertisement and Fraudulent Sales Promotion Practices
Regulation of Repair and Service Firms
For other consumer concerns, please refer to the matrix below:
What if parties fail to settle amicably?
When no settlement is reached by the parties, the Mediation Officer with or without the request of complainant, shall forthwith issue a Certificate to File Action with copies thereof served on the parties pursuant to Rule III Section 6.2 of DAO 20-02 Series of 2020.
Complainants may file a formal complaint to DTI Adjudication Division, the Office that has jurisdiction or the Regular Courts.
I do not have information about the business address of the establishment I had a transaction with online, which I want to complain against, what shall I do?
For concerns involving transactions against an alleged online seller/scammer, without the contact information such as business address, you may directly file to either the Philippine National Police (PNP) or the National Bureau of Investigation (NBI).
NBI Anti-Cybercrime Division
NBI Building
Taft Avenue, Manila
Tel: (632) 523-8231 to 38 local: 3454, 3455
Email: ccd@nbi.gov.ph
NBI Anti-Fraud and Action Division
NBI Building
Taft Avenue, Ermita, Manila
523 8231 to 38 local 3491 & 3456
Email: afad@nbi.gov.ph
PNP-ACG Operations Center
Camp Crame, Quezon City
Tel: 8723-0401 local 5337 or 0998 598 8116
Email: cpiu@acg.pnp.gov.ph
cyber.response@acg.pnp.gov.ph
cru.acg@pnp.gov.ph
Is “No Return, No Exchange” policy allowed?
No, it is not allowed. The prohibition on the “No Return, No Exchange” policy is enforced so that consumers may exercise their right to 3Rs – repair, replacement, and refund in case the product purchased has imperfection or defect pursuant to the Consumer Act of the Philippines (R.A. 7394).
However, the said policy does not apply under the following situations:
If the product purchased has no imperfection or defect, or if not expired or fake, the store may opt not to replace or refund
When the defects of the goods are due to the mishandling of the buyer
In cases of “as-is-where-is” transactions
If the consumer had a change of mind
The sale of second-hand articles
What are the Laws and Statutes in Mediation?
Republic Act No. 7394 (Consumer Act of the Philippines)
What are the Implementing Rules and Regulations/Guidelines in Mediation?
Department Administrative Order No. 05, Series of 2007 (Rules on Mediation in the Resolution of Inquiries, Complaints and/or Cases Filed with the Department of Trade and Industry (DTI) for Violations of the Consumer Act of the Philippines and Other Trade and Industry Laws Supplementing Department Administrative Order No. 07, series of 2006)
Department Administrative Order No. 20-02, Series of 2020 (Revised Rules of Mediation and Adjudication of DTI)
What is Adjudication?
Black’s Law Dictionary defines Adjudication as the legal process of resolving a dispute. The formal giving or pronouncing a judgment or decree in a court proceeding; also the judgment or decision given.
In Consumer Complaints handling, the process of adjudication starts after efforts to arrive at an amicable settlement have failed during the Mediation stage, the Complainant may opt to pursue his/her consumer complaint further by filing a formal complaint with the Adjudication Division.
Once the essential requirements have been complied, the complaint will then be assigned to the Adjudication Officer who will be tasked to adjudicate on the consumer complaint by ordering the filing of the respective position papers from the parties within ten (10) working days from receipt of the notice/order. Once the position papers have been submitted, the Adjudication Officer will determine whether or not the complainant is entitled to the remedy of Repair, Replace, or Refund and may also impose the appropriate administrative penalty or sanction prescribed by applicable laws/regulations if necessary.
What is a Consumer Complaint?
A “Consumer Complaint” (Formal Complaint) filed for the purpose of adjudication under Section 1, Rule IV of Department Administrative Order No. 20-02 refers to the “written allegation of the violations of the Consumer Act of the Philippines or any Trade and Industry Law arising from a consumer transaction”. A Consumer Complaint contains the following: a detailed narration of facts surrounding the consumer transaction, names and addresses of the parties, the cause or causes of action of the Complainant against the Respondent relating to the alleged law violated or any specific provision thereof, the relief sought, a Verification and Certification Against Non-Forum Shopping and such other pieces of evidence to support the Complainant’s allegation (Section 1.1; Rule IV of Department Administrative Order No. 20-02)
What is the Adjudication Process?
Adjudication Process for Consumer ComplaintsUpon issuance of Certificate to File Action by the Mediation Division, the complainant may now file a Formal Complaint with proof of transaction, pieces of evidence, and other pertinent records to the Adjudication Division of the Fair Trade Enforcement Bureau.
Receipt of the Formal Complaint and the CFA
Upon receipt of the Formal Complaint and attachments, the Adjudication Officer (AO) will evaluate the Complaint if it is essentially complete (If the Formal Complaint is duly accomplished, notarized, has Verification of Non-Forum Shopping and a CFA). In case some essential details in the complaint form (address, cause of action, signature etc.) are lacking, we can assist the party to remedy the defect.
Issuance of the NOA and other Orders
The AO assigned to the case issues the Notice of Adjudication ordering the parties to submit their respective Position Papers within a non-extendible period of Ten working days. It will be sent electronically and physically to the address of records of the parties found in the Complaint.
Deciding a Case
When a case is already submitted for Decision, the AO will decide the case based on the pleadings and evidence submitted on record relative to existing laws, issuances and jurisprudence. A certified true copy of the Decision will be sent to the physical address of the parties.
What are the remedies available to me should I choose to file a Formal Complaint?
The reliefs available for a complainant are either: Repair, Replacement, or Refund of the amount paid.
Can the Adjudication Officer award damages and other expenses?
No. The Adjudication Officer cannot award damages, litigation, and other similar expenses. The Adjudication Officer may grant the remedies of Repair, Replace or Refund. We may only order the repair or replacement of the product or refund of the purchase price, which is limited only to the actual purchase price of the product or service at the time of the transaction. You may however file a complaint for damages and other expenses in the regular courts after this case has attained finality.
Can we file a counterclaim and cross-claim?
A counterclaim and a cross-claim cannot also be filed being a prohibited pleading under Section 11 of Department Administer Order No. 02, Series of 2020.
When can I file a Consumer Complaint before the Adjudication Division?
You can file a consumer complaint upon the issuance of a Certificate to File Action by the Mediation Division. Mediation is mandatory and a condition precedent to the filing of a Consumer Complaint (Formal Complaint).
Is there a filing fee?
There is no filing fee. As long as the Complaint is sufficient in form and the requirements submitted are complete, it may immediately be filed before the Adjudication Division.
Is the representation by a lawyer mandatory?
No, it is not mandatory. However, a party may seek legal representation to better protect his/her rights and interests.
How can I file the Consumer Complaint with the Adjudication Division?
After mediation, the complaint may be filed before the Adjudication Division through the submission of the following documents:
Duly verified, dated and signed Complaint Form containing:Names and addresses of the parties
Concise statement of material facts and circumstances constituting the cause/s of action including the date, time, and place of commission or the act/s or omission/s complained of;
Sworn Statement of witnesses and/or object or documentary evidence, if any;
Reliefs prayed for, and the preliminary or preventative measure/s sought if any; and
Certificate of Non-Forum Shopping
Certificate to File Action
(Sec. 1, Rule IV, DAO 20-02)
What happens if the Formal Complaint is insufficient or defective?
The complainant shall be notified of the insufficiency or defects of the complaint, and is required to correct or remedy the complaint within three (3) working days from notice, otherwise, the same shall be dismissed without prejudice to the refiling of a duly accomplished complaint. (Sec. 1, Rule IV, DAO 20-02)
What is the next step after I file the complaint?
To submit a position paper, with proof of service to the other party, within a non-extendible period of ten (10) working days from receipt of the Notice of Adjudication. Additionally, the Adjudication Officer may also require the submission of additional evidence, or to hold a clarificatory hearing. (Secs. 6, 9, 12, Rule IV, DAO 20-02)
What will happen if I fail to file a Position Paper?
A party who fails to file a position paper within ten (10) working days from receipt of the Notice of Adjudication shall be considered to have waived his or her right to file the same. A decision will be rendered based on the available evidence on record.
Will there be a Hearing in Consumer Complaint cases?
A ‘Clarificatory Hearing’ may be conducted when the Adjudication Officer finds that there is a need to clarify certain issues on the Position Paper, Affidavits or pieces of evidence submitted by either party. (Section 12, Rule IV; Department Administrative Order No. 20-02). The holding of such Hearing is discretionary on part of the Adjudication Officer and in case the necessity to conduct arises, a Notice thereof will be sent containing the details of the Hearing.
When is the case submitted for decision? (for Consumer Complaints)
A case shall be deemed submitted for decision:
When there is a petition jointly filed by the parties to seek judgment on their mediation agreement (Sec. 5, Rule IV, DAO 20-02);
Upon submission of the parties of their respective position papers within the period prescribed or upon the lapse of ten (10) working days from receipt of the Notice of Adjudication (Sec. 10, Rule IV, DAO 20-02); or
After the conduct of the clarificatory hearing (Sec. 12, Rule IV, DAO 20-02);
Upon submission of additional evidence or upon the lapse of the period provided by to comply with such requirement (Sec. 12, Rule IV, DAO 20-02).
Note that due to the difference in dates of receipt of the notices by the parties and date of compliance, the determination when the case is submitted for decision shall be based on the later compliance or upon the lapse of the prescribed period.
When will the decision be issued?
The decision will be issued within fifteen (15) working days from the time the case is submitted or deemed submitted for decision.
Can a motion for reconsideration be filed in consumer complaint cases?
No. Motion for reconsideration is not allowed for violations of the Consumer Act in Consumer Complaints. (Sec. 1, Rule XIV, DAO 7, Series of 2006). The filing of an Appeal (See FAQ #22) is the proper remedy available to any party aggrieved by the Decision.
What is the remedy of a winning party in case the party against whom the decision is rendered fails to comply?
The winning party may file a motion for the issuance of an Order of Execution indicating the adverse party’s date of receipt of the Decision sought to be executed to prove that indeed, it has attained finality.
An Order of Execution will then be issued by the Adjudication Officer and consequently, a Writ of Execution directed to the Office of the Sheriff. Thereafter, any updates regarding the execution of the Decision shall be made to the Office of the Sheriff.
What are the Laws and Statutes in Adjudication?
Republic Act No. 7394 (Consumer Act of the Philippines)</a >
What are the Implementing Rules and Regulations/Guidelines in Adjudication?
Department Administrative Order No. 20-02, Series of 2020 (Revised Rules of Mediation and Adjudication of the Department of Trade and Industry)</a >
Department Administrative Order No. 7, Series of 2006 (Instituting the Simplified and Uniform Rules of Procedure for Administrative Cases Filed with the Department of Trade and Industry (DTI) for Violations of the Consumer Act of the Philippines and Other Trade and Industry Laws)</a >
What is the Adjudication Process for Formal Charges?
Filing of a formal charge by the Prosecution Unit starts the adjudication process of the case.
Issuance of Summons –
Upon receipt of a Formal Charge, a Summons is issued by the Adjudication Officer which is an order requiring the Respondent in the case to submit an Answer to the Formal Charge within ten (10) working days from receipt of the Summons.
Issuance of Notice of Preliminary Conference –
After Respondent’s Answer has been received or after the period to file the same has expired, the Adjudication Officer will either set the preliminary conference hearing through the issuance of a Notice of Preliminary Conference, or in lieu of a formal hearing, may opt to directly issue a Preliminary Conference Order. A Notice of Preliminary Conference is a notice informing the parties that a preliminary conference is being scheduled for the parties to discuss and take into consideration the following: (1) The simplicity of the issues; (2) The necessity or desirability of amendments to the pleadings; (3) The possibility of obtaining stipulations or admission of facts and of documents; (4) The limitation of the number of affiant-witness; and (5) Such other matters as may aid in the prompt disposition of the case.
Issuance of a Preliminary Conference Order –
After the conduct of the preliminary conference, the Adjudication Officer shall issue a Preliminary Conference Order which is an order directing the parties to submit their respective position papers with supporting affidavits and other documentary evidence not later than fifteen (15) days from the receipt of the said Order. Upon submission of the position papers, or upon the expiration of the period to submit position paper in instances that no position paper has been filed, the case shall be deemed submitted for decision
Issuance of the Decision –
Within fifteen (15) days from the time the case is submitted or deemed submitted for decision, the Adjudication Officer shall issue the decision or judgment determining the violation/liability of the respondent as charged based on: (a) the relevant facts of the case; (b) the issue/s involved; (c) applicable law and/or jurisprudence; (d) conclusions and reasons therefor; and (e) the relief/s granted, if any, and the administrative penalty/ies imposed, if any.
Filing of a Motion for Reconsideration by the aggrieved party –
An aggrieved party may file a Motion for Reconsideration with the Adjudication Officer who rendered the decision, requesting the Adjudication Officer to reconsider the decision raising the points in the decision which are not supported by evidence or are contrary to law. The party is allowed by the rules to file only one (1) Motion for Reconsideration within the appeal period, which is fifteen (15) days from receipt of the decision.
Filing of Appeal by the aggrieved party –
An appeal may be filed, within fifteen (15) days from receipt of the decision/final judgment or order through the filing of a Memorandum of Appeal with the Office of the Secretary, together with a Notice of Appeal to the Adjudication Officer and copy furnished the adverse party/ies.
Execution of Decision –
This is a process where after the decision has become final and executory, the Adjudication Officer, upon motion of the interested party or motu proprio, will issue an Order of Execution with the corresponding Writ of Execution, requesting the proper Sheriff’s Office to execute said decision.
Source: Department Administrative Order No. 7 Series of 2006
What should I expect if a Formal Charge is filed against me?
As respondent, you will receive a Summons issued by the Adjudication Officer, requiring you to file a written answer within ten (10) working days from receipt. (Sec. 4, Rule IX, DAO no. 07, Series of 2006). In your answer, you should be able to present your defenses to the allegations in the Formal Charge and not to file a ‘Motion to Dismiss’, which is a prohibited pleading (Section 1, Rule VII, Department Administrative Order No. 7 Series of 2006 ).
Can I file a Motion to include the supplier of the subject product in the case?
No. A Motion to include the supplier of the subject product in the case is a prohibited pleading under Section 1 (g) of Department Administrative Order No. 7 Series of 2006.
This however, does not prevent you from disclosing the name of the supplier of the seized non-conforming products which could be the basis for filing a separate administrative and/or criminal charge against the said supplier.
Is hearing required?
Under existing DTI rules, in lieu of a formal hearing, the Adjudication Officer shall direct the parties to simultaneously submit their respective position paper with supporting affidavits and other documentary evidence not later than fifteen (15) days from receipt of the Preliminary Conference Order. Should the Adjudication Officer believe that there is/are question/s of fact, he may set the case for hearing before the same is submitted for decision, purposely to resolve that issue.
Can I file a Motion for extension of time to submit a position paper?
No. A Motion for extension of time to submit a position paper is a prohibited pleading under Section 1 par. (e), Rule VII of Department Administrative Order No. 07, series of 2006.
What are the matters to be discussed in the Preliminary Conference?
The matters to be discussed in the Preliminary Conference consist of the following: (1) The simplicity of the issues; (2) The necessity or desirability of amendments to the pleadings; (3) The possibility of obtaining stipulations or admission of facts and of documents; (4) The limitation of the number of affiant-witness; and (5) Such other matters as may aid in the prompt disposition of the case.
Is Mediation allowed?
No. Mediation is only mandatory in consumer complaints under Section 1, Rule III of Department Administrative Order No. 02, series of 2020. Further, mediation is defined as an intervention by which DTI, through its appointed or designated mediation officers, facilitates communication and negotiation between the parties, and assists them in reaching a voluntary settlement of their dispute. Thus, since DTI is the complainant in a Formal Charge, it cannot intervene in the case.
What will happen after the Preliminary Conference / Hearing is terminated?
The Adjudication Officer will issue a ‘Preliminary Conference Order’ summarizing what was agreed upon by the parties during the conference and directing both parties to submit their position papers, affidavits and other documents not later than fifteen (15) days from receipt of order.
Will I be declared in default if I fail to submit a Position Paper?
No. The case will be decided based on the documents, pleadings and pieces of evidence available on record.
When is a case deemed submitted for decision? (Formal Charge)
The case shall be submitted for Decision:
Upon submission of the position papers; or
Upon the expiration of the fifteen (15)-day period to submit the position paper and no position paper has been filed (Section 1 (d), Rule XII of Department Administrative Order No. 7 Series of 2006).
When will the Decision be rendered?
Within fifteen (15) days from the time the case is submitted or deemed submitted for Decision, the Adjudication Officer shall issue a decision. (Section 1, Rule XIII, of Department Administrative Order No. 7 Series of 2006).
What is my remedy in case I am not satisfied with the decision?
You may file an appeal within fifteen (15) days from the receipt of the Decision on any of the following grounds: (1) Grave abuse of discretion; (2) The decision/order is in excess of jurisdiction or authority of the Adjudication Officer; and (3) The decision/order is not supported by the evidence or there is serious error in the findings of facts. The appeal shall be taken by filing a Memorandum of Appeal with the Secretary, with Notice of Appeal to the Adjudication Officer, and with copy duly furnished the adverse party/ies.
If I were to be ordered to pay an administrative penalty, where and when do I pay?
Payment of the administrative penalty shall be made at the Cashier’s Office of the DTI-Fair Trade Enforcement Bureau, which is at 315 Sen. Gil Puyat Ave., Makati City within fifteen (15) days from receipt of the Decision. Upon payment, the Respondent shall bring a copy of the Decision, which contains the amount sought to be paid.
In case the Respondent resides outside Metro Manila and the case was lodged before the Fair Trade Enforcement Bureau, payment may also be made at the Cashier’s Office of the nearest DTI Provincial or Regional Office after informing this Office that payment will be made at a particular DTI Office.
Payment shall be made in cash or manager’s check in the exact amount stated on the dispositive portion of the Decision.
What will happen if I failed to pay within the fifteen (15)-day period within which to pay the penalty from receipt of the Decision?
After the fifteen (15)-day period within which to pay the penalty from receipt of the Decision, the Decision shall become final and executory. If a party fails to pay within said period, upon motion of the interested party or motu proprio, the Adjudication Officer will issue an Order of Execution with the corresponding Writ of Execution, requesting the proper Sheriff’s Office to implement said decision.
What is the difference between an Order of Execution and a Writ of Execution?
An Order of Execution is an order issued by the Adjudication Officer directed to the parties informing the parties that the decision has become final and executory while a Writ of Execution is a form of written command authorizing the Office of the Sheriff to implement the decision that has become final and executory.
What happens to the products which were confiscated/sealed?
The sealed and confiscated subject products of the case shall be forfeited and destroyed in accordance with the existing rules and guidelines of the Department pursuant to Department Order No. 20-50 (Guidelines in the Destruction of Non-Conforming Products).
The destruction of the seized goods found to be non-conforming, injurious, hazardous or unsafe shall be made after the finality of the Decision (Section 5.3; Department Order No. 20-50).
What does “Final and Executory” mean? When does a Case become final and executory?
Final and Executory means that a Decision or Resolution rendered by the Adjudication Officer has become final, can no longer be modified, altered, appealed or overturned and consequently, may already be executed in favor of the prevailing or winning party. The Decision attains finality specifically when the losing party failed to file an appeal within the prescribed period.
For purposes of Adjudication, all Decisions shall become final and executory when all period for Motion for Reconsideration and Appeal provided for under the Rules, whether taken or not, shall have lapsed. (Section 1, Rule XVI, Department Administrative Order No. 7 Series of 2006). As soon as a Decision becomes ‘final and executory’, the Adjudication Officer shall, either on motion of the interested party, or motu proprio, issue an Order of Execution with a corresponding Writ of Execution, requesting the proper Sheriff to execute the Decision. (Section 1, Rule XVI, Department Administrative Order No. 7, Series of 2006).
What are the Laws and Statutes in Adjudication for Formal Charges?
Republic Act No. 7394 (Consumer Act of the Philippines)</a >
Republic Act No. 4109 (Product Standards Law)</a >
Republic Act No. 7581 (Price Act)</a >
Presidential Decree No. 1572 (Law on Accreditation)</a >
Act No. 3883 (Business Name Law)</a >
Department Administrative Order No. 02 Series of 2007 (Defining the Responsibilities and Liabilities of Manufacturers, Importers, Traders, Wholesalers, Distributors, Retailers, Service Providers and or their Agents, with regard to Products/Services covered by Philippine Standards (PS) Certification Mark Scheme and Prescribing Penalties for Violation thereof of the Bureau of Product Standards (BPS))</a >
What are the Implementing Rules and Regulations/Guidelines in Adjudication for Formal Charges?
Department Administrative Order No. 7, Series of 2006 (Instituting the Simplified and Uniform Rules of Procedure for Administrative Cases Filed with the Department of Trade and Industry (DTI) for Violations of the Consumer Act of the Philippines and Other Trade and Industry Laws)</a >
>Department Administrative Order No. 06, Series of 2007 (Revised Schedule of Administrative Fines for Violations of the Consumer Act of the Philippines and some Trade and Industry Laws)</a >
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