AUTOSHOPS - May dagdag when paying via credit card (surcharge)

[lm723]

To the MODS/Admins, i don't know if pwede ito dito. Pero i still encountered auto shops that tells me pag nag bayad ako nang credit card may surcharge pa din.

Dati kse sa news, i've heard na bawal na ito. Nag research ako ulit for that law and found this..
http://www.dtincr.ph/law_policies.php
http://www.manilatimes.net/national/...70422top2.html

http://www.dtincr.ph/files/LawsAndPolicies-DAO_10.pdf -- PDF file

DEPARTMENT ADMINISTRATIVE ORDER NO. 10
SERIES OF 2006
SUBJECT: Reiterating the Rules on Price Tags/Labels and Providing Prohibition Against the Imposition of a Surcharge, Extra Charge or Additional Charge in the Use of Credit/Automated Teller Machine (ATM)/Debit Cards for Payment of Purchases of Consumer Products or Services

WHEREAS, Republic Act No.7394, otherwise known as the Consumer Act of the Philippines, declares that 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;

WHEREAS, Article 3 of Republic Act No. 7394 declares that the best interest of the consumer shall be considered in the interpretation and implementation of the provisions of this Act, including its implementing rules and regulations;

WHEREAS, the progress in technology of the globalized economy comes along with the convenience of business activities and consumer transactions through the use of credit cards as a mode for payment of goods and services;

WHEREAS, the credit/ATM/debit card holders must be protected from sellers/retailers who impose surcharges or additional amount over and above the price tag on the goods and services in the use of credit cards in payment thereof;

WHEREAS, there is a need to amplify and supplement the current DTI Department Administrative

Order No. 09, dated 10 September 2002, providing rules on price tags and labels;

NOW, THEREFORE, pursuant to the provisions of the Consumer Act, the following Order is hereby
prescribed for the information, guidance and compliance of all concerned:


Section 1. Scope and Coverage. This Order shall apply to all retailers and retail sales to consumers.
Section 2. One Price Tag Requirement. Every retailer is required to display a price tag to indicate the
price of each consumer good and/or services, as required in Articles 81 to 83 of the Consumer Act of
the Philippines or R.A. No. 7394.
The price tag must be written clearly, indicating the price of the consumer product including Value
Added Tax (VAT) whenever the consumer product is VATABLE. Service charge, if any, shall not be
included in the price tag.
Example:
1. Correct – When the price tag is inclusive of VAT as shown in Official Receipt issued.
PRODUCT 1 1 P26.00
PRODUCT 2 1 36.00
PRODUCT 3 1 112.00
TOTAL SALES P174.00
TAX INCLUDED 18.65
The consumer pays P 174.00 only.
2. Wrong – When the price tag is exclusive of VAT as shown in the Official Receipt issued.
PRODUCT 1 1 P26.00
PRODUCT 2 1 36.00
PRODUCT 3 1 112.00
SUB TOTAL P174.00
VAT 18.65
TOTAL SALES 192.65
The consumer pays P 192.65.
Section 3. Modes of Payment and other Price Tag Practices . It is necessary to consider business
practices relative to the mode of payment to determine compliance with Price Tag Law. These
practices include the following:
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1. When the consumer pays in cash, he shall pay only the price indicated in the price tag.
2. When the consumer pays through a credit/ATM/debit card, he shall pay only the price indicated in
the price tag.
3. When the retailer offers the consumer an option to pay in cash, card or on installment, the same
is allowed provided the payment options shall be disclosed by way of a separate information to
the consumer but not in the price tag.
4. Price tag indicating a separate CASH PRICE TAG and REGULAR PRICE TAG on each product
or service is not allowed.
5. Price tag indicating a separate CASH PRICE TAG and CARD PRICE TAG on each product or
service is not allowed.
Section 4. Price Reduction Sales Promotion. In case of sales promotions involving price reduction,
seasonal sales, reduced revenue sale, discount sales, and other general or selected prize reductions,
it shall comply with the provisions of Rule XIII, Sections 1, 1.1 to 1.6 of Department Administrative
Order No. 2, Series of 1993 implementing the Consumer Act of the Philippines.
Section 5. Prohibition Against Surcharging by Retailers. All retailers who honor/accept
credit/ATM/debit cards for payment shall not require the cardholders to pay a surcharge, extra
charge, or additional charge over and above the price tag on the consumer goods and services.
Section 6. Consumer Complaints. The provisions of the Consumer Act under Article 159 to 166 as
well as DTI Department Administrative Order No. 07, Series of 2006 shall govern consumer
complaints on violations of Articles 81 to 83 of the Consumer Act and this Order.
Section 7. Penalties. Violations of the provisions of Article 81 to 83 of the Consumer Act and this
Order shall be penalized under Article 95(b) and Article 164 of the same Act quoted as follows:
1.) Article 95 (b) of the Consumer Act: any person who violates the provisions of Article 81 to 83
for the first time shall be subject to a fine of not less than Two hundred pesos (P200.00) but no more
than Five thousand pesos (P5,000.00) or by imprisonment of not less than one (1) month but not more
than six (6) months or both, at the discretion of the court. A second conviction thereunder shall carry
with it the penalty of revocation of business permit and license.
2.) Article 164 of the Consumer Act wherein after formal investigation, any of the following
administrative penalties may be imposed on the respondent even if not prayed for in the complaint:
a. the issuance of a cease and desist order, Provided, however, That such order shall
specify the acts that respondent shall cease and desist from and shall require him to submit a
report of compliance therewith within a reasonable time;
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b. the acceptance of a voluntary assurance of compliance or discontinuance from the
respondent which may include any or all of the following terms and conditions:
1.) an assurance to comply with the provisions of this Act and its implementing rules and
regulations; and
2.) an assurance to refrain from engaging in unlawful acts and practices or unfair or unethical
trade practices subject of the formal investigation;
3.) an assurance to comply with the terms and conditions specified in the consumer
transaction subject of the complaint;
4.) an assurance to recall, replace, repair, or refund the money value of defective products
distributed in commerce;
5.) an assurance to reimburse the complaint out of any money or property in connection with
the complaint, including expenses in making or pursuing the complaint, if any, and to file a
bond to guarantee compliance therewith;
c. restitution or rescission of the contract without damages;
d. condemnation and seizure of the consumer product found to be hazardous to health
and safety unless the respondent files a bond to answer for any damage or injury that may arise
from the continued use of product;
e. the imposition of administrative fines in such amount as deemed reasonable by the
Secretary, which shall in no case be less than Five hundred pesos (P500.00) nor more than
Three hundred thousand pesos (P300,000.00) depending on the gravity of the offense, and an
additional fine of not more than One thousand pesos (P1,000.00) or each day of continuing
violation.
Section 8. Repealing Clause. All orders and issuances which are inconsistent with this Order are
hereby repealed or amended accordingly.
Section 9. Publication and Effectivity. This Order shall be published in two (2) newspapers of
general circulation and shall take effect fifteen (15) days after its publication.
Issued this 18 day of October 2006 in Makati City, Philippines.
(Sgd.) PETER B. FAVILA
Secretary
Recommended by:
(Sgd.) ZENAIDA CUISON MAGLAYA (Sgd.) VICTORIO MARIO A. DIMAGIBA
Undersecretary Director
Consumer Welfare and Trade Regulation Group Bureau of Trade Regulation and
Consumer Protection

Medyo magulo, kse nag copy and paste ako. Andun sa taas ung PDF link.

Most auto shops na napuntahan ko was in Makati, Malugay. Sabi ko alam ko bawal na yun, ang sabi sa akin. "Meron talga sir, sa amin".

[mazdamazda]

Yup, tama ka. Bawal na yan...

Sa Servitek, Autotechnika & CPM Muffler wala naman surcharge kapag via credit card ang payment.

[BlueBimmer]

yes bawal yan, in our depot selected lang items pwede gamitan ng CC...for those na pinapatungan before, strictly cash only para walang sabit. of course hihina ang sales on some items pero those are the super low markup items kaya no choice..

[j_avonni]

Bawal yan. Pag may surcharge, I just don't patronize their products/services. Pwede mo i-report sa Credit Card company mo, so they could take action/s.

[the_wildthing]

So in essence businesses will increase their prices to cover for the possibility that the customer will pay with a card. Tama ba? Because they have to make sure they can pay the CC "commission".

If that's the case then that doesn't sound pro-consumer.

Does anyone have statistics on the % of Filipinos who actually have a credit card?

[VtEC]

[quote=the_wildthing;813021]So in essence businesses will increase their prices to cover for the possibility that the customer will pay with a card. Tama ba? Because they have to make sure they can pay the CC "commission".

That's not fair.Magulang ang tawag sa mga yan.E ang taas na ng mga mark ups ng mga yan e

[jazcker]

Yup, tama ka. Bawal na yan...

Sa Servitek, Autotechnika & CPM Muffler wala naman surcharge kapag via credit card ang payment.

sa servitek sto. tomas batangas may additonal na 7% when you pay thru credit card. that was sept. 2006....ewan ko lang ngayon....

[HardCharger]

Hi All!

Hmm...

I bought a few things from a 4x4 shop a couple of weeks ago using a credit card and was charged a surcharge for doing so.

I even confirmed with the owner if I would be charged surcharge and he said no. Since he wasn't around when I bought the stuff, I couldn't remind him of what he said.

Imagine my surprise.

In any case, I had no choice but to swallow the charges without flinching.

Bummer.

[j_avonni]

sa servitek sto. tomas batangas may additonal na 7% when you pay thru credit card. that was sept. 2006....ewan ko lang ngayon....

Before, the Servitek Fairview, charged additional for parts - no additional charge for labor. Their reason - utang din daw yung mga parts nila.

I don't know if they already changed this policy.

[Pencils]

MazdaMazda,

It seems to me that my last post was offensive to your eyes. You not only imposed an infraction on me, you also deleted my post, but chose not to explain the nature of the offense. Makes sense somewhere I suppose, but not in my camp.

Whereas you are determined to love your CC and not see the added 10% expenditure, be content and live happily. I'm tired of trying to educate adults.


Pencils

[mazdamazda]

MazdaMazda,

It seems to me that my last post was offensive to your eyes. You not only imposed an infraction on me, you also deleted my post, but chose not to explain the nature of the offense. Makes sense somewhere I suppose, but not in my camp.

Whereas you are determined to love your CC and not see the added 10% expenditure, be content and live happily. I'm tired of trying to educate adults.


Pencils

As I've said - there will be no more discussing about the ethics, computation, etc. of surcharges or credit card use. This thread is about the ILLEGAL imposition of surcharge as deemed by the Department of Trade and Industry.

///MPower summed it up. It seems like you weren't even reading our posts here while continuously trying to "educate" us. I have warned everyone already to not further discuss this here as this is going way off topic already from the intended message by the thread starter.

If you want to continue on trying to "educate" us - go and post in the credit card thread or start yourself a new thread. I am not preventing you from preaching your gospel for as long as put it in the proper thread.

[IMm29]

Most auto shops na napuntahan ko was in Makati, Malugay. Sabi ko alam ko bawal na yun, ang sabi sa akin. "Meron talga sir, sa amin".

Yup, just purchased a drop in air filter along Malugay. There was a surcharge for use of the credit card. There was also a shop along Malugay na nakiki-swipe sa iba pang establishment. They charge 9% coz yun daw ang sinisingil sa kanila nung establishment kung san sila nakiki-swipe. Had to agree to that crappy deal that time coz my installation was complete, I didn't have cash on me, and they said they accepted cards. D*mn! Di na ko bumalik.

[Pencils]

I don't like Credit Cards. They charge 10% of your bill in restaurants and I don't know what they charge for other purchases, but if I could save the 10%on everything I purchased, simply by paying cash, I would be very happy.

To make things sweeter for the CC company they charge you for using their CC regardless that they don't make money if you don't, and they also charge you extra for NOT using their CC if you have one but don't make any purchases. One company sent me a CC with the declaration that I was PRE-APPROVED, and would be allowed the first year without the subscription charge. When I didn't use their card they immediatly began charging me P 200/month that I failed to make any purchases with their card. They've given up on me now.

Seems to me that everything goes in favor of the CC company. Now with this law, I don't have any advantage left for not using a CC except the feeling of satisfaction that they don't make money from my purchases.

I don't like Credit Cards. I can still remember how the restaurants I used to patronize raised their prices because of the CC. Besides, it encourages me to spend my money even before I've made it, moreso had it in my pocket. And, if I make the mistake of spending too much, the CC company gets to charge me usurous rates for the amount I fail to pay. Now they really have me every which way.

It seems to me to be better to refrain from purchasing anything until I have the cash to pay for it.


Pencils

[Dr.Kamiya]

Palusot sa DTI yung "3% discount for cash customers", tapos yung SRP nila inflated na by 3% in advance.

Done that way, wala talagang magagawa DTI or CC company mo, since hindi naman sya "surcharge".

[Auto_Xer]

IMm29,

If you ever find yourself in QC maybe you can drop by our service shop.
We accept card payments without surcharge.

[///MPower]

Technically, merchants are not allowed to add a surcharge for CC transactions, and doing so violates the terms of the agreements they have with the credit companies. You could, if you so wish, complain to the card companies and have their merchant licenses revoked.

[IMm29]

IMm29,

If you ever find yourself in QC maybe you can drop by our service shop.
We accept card payments without surcharge.

Thanks! Will do that if I'm in the area

[sentra98]

IMm29,

If you ever find yourself in QC maybe you can drop by our service shop.
We accept card payments without surcharge.

sir, san shop niyo sa QC?

back to topic, if you will look at the penalty masyado mababa ang affordable ng mga violators.