Dear PAO,

I work as a truck driver for a company located in Makati City. Whenever I need to purchase my lunch or grab a quick snack, I often visit the carinderia closest to our warehouse. Interestingly, when they need to give me a few pesos in change, they consistently choose to give me candy instead of the exact change owed. I’m considering addressing this with the owner, but I’m uncertain if this practice is permissible since the value of the candy is similar to the change due to me. Would there be grounds for a complaint in this situation?

Lionel

Dear Lionel,

Please be informed of Section 4 of Republic Act 10909, otherwise known as the “No Shortchanging Act of 2016,” which states that:

“Section 4. Regulated Acts. – It shall be the duty of the business establishment to give the exact change to the consumer without waiting for the consumer to ask for the same.

“(a) In General. – It shall be unlawful for any business establishment to shortchange a consumer, even if such change is only of a small amount. Nothing in this Act shall be construed as a restriction for business establishment to give an amount greater than the sufficient change.

“(b) Other Prohibitions. – It shall also be unlawful for any business establishment which sells goods or provides services to give the change in any form other than the present currency or to ask the consumers for permission to be exempted from the provisions of this Act for any reason, including the non-availability of small bills or coins.”

Based on the above-stated law, the act of giving insufficient or no change to a consumer who purchases a product or service is unlawful, even if such change is only of a small amount. It shall be the duty of the business establishment to give the exact change to the consumer without waiting for the consumer to ask for it.

Additionally, the law provides that it shall be unlawful for any business establishment to give the change in any form, regardless of the reason, including the non-availability of small bills or coins.

Section 6 of the abovementioned law provides for the penalty, viz:

“Section 6. Penalties. – Any violation of this Act as determined by the DTI under Section 5 hereof shall be punished as follows: for the first offense, a violator shall be fined five hundred pesos (P500.00) or three percent (3%) of the gross sales of the business establishment on the day of the violation, whichever is higher: for the second offense, a violator shall be fined five thousand pesos (P5,000.00) or five percent (5%) of the gross sales of the business establishment on the day of the violation, whichever is higher; for the third offense, a violator shall be fined fifteen thousand pesos (PI5,000.00) or seven percent (7%) of the gross sales of the business establishment on the day of the violation, whichever is higher, and the license to operate of the business establishment shall be suspended for three (3) months; and for the fourth offense, a violator shall be fined twenty-five thousand pesos (P25,000.00) or ten percent (10%) of the gross sales of the business establishment on the day of the violation, whichever is higher, and the license to operate of the business establishment shall be revoked. In addition to the amount of the fine mentioned above, the total amount of change the establishment failed or refused to give, as determined from the audit of the DTI, shall be paid by the said establishment to the complainant.”

We hope that we were able to answer your queries. This advice is based solely on the facts you have narrated and our appreciation of the same. Our opinion may vary when other facts are changed or elaborated on.

Editor’s note: Dear PAO is a daily column of the Public Attorney’s Office. Questions for Chief Acosta may be sent to dearpao@manilatimes.net