AN ORDINANCE STRENGTHENING CONSUMER RIGHTS AND PROTECTION BY REQUIRING BUSINESS

ESTABLISHMENTS ENGAGED IN THE BUSINESS OF RETAIL AND SALE OF CONSUMER PRODUCTS TO

ALLOW THE RETURN OR EXCHANGE OF ITEMS OR PRODUCTS PURCHASED BY CONSUMERS WITHIN
SEVEN DAYS FROM THE DATE OF PURCHASE.

WHEREAS, Republic Act 7349 otherwise known as the “Consumer Act of the
Philippines” provides in Article 2 thereof that it is the basic policy of the State to protect the
interests of the consumer, promote his general welfare and establish standads of conduct for
business and industry with the objective of protecting consumers against hazards to health and
safety, protection against deceptive, unfair and unconscionable sales acts and practices; providing
information and education to facilitate sound choice and the proper exercise of rights by the
consumer and provision of adequate rights and means of redress.

WHEREAS, Republic Act 7610 otherwise known as the “Local Government Code of
1991” provides that the Local Government unit shall exercise such powers expressly granted, those
implied therefrom, as well as powers necessary, appropriate or incidental for its efficient and
effective governance, including those which are essential to the promotion of the general welfare.

WHEREAS, the numerous consumers have been victimized by unscrupulous business

establishments who sells defective or damaged goods/items to the general public leaving such
consumers without any means by which they can immediately and speedily address their
grievance.

WHEREAS, numerous business establishments within Quezon City do not have any return
or exchange policies set in place concerning items or products which have been purchased from
their respective establishments or stores.

WHEREAS, in order for Consumers/Purchasers to be properly appraised of their rights and

privileges as a Consumer, business establishments must post or place their return and exchange
policies within their respective stores or establishments in for the latter to be properly informed of
the same.

WHEREAS, purchased items must be of satisfactory quality, fit for the purpose bought,
and the same as described so that consumers will get a full money’s worth of purchase.

SECTION 1. TITLE. This ordinance shall be known as the “Seven Days Return Policy Ordinance of Quezon
City”.

SECTION 2. COVERAGE. This ordinance shall apply to all business establishments engaged in the business
of retail and sale of consumer products within the territorial jurisdiction of Quezon City.
SECTION 3. DEFINITION OF TERMS – The following words when utilized in this ordinance shall have the
following meaning: provide for the definition of the following, do not copy paste but you can use
provisions for basis, must be specifici for this ordinance.

BUSINESS ESTABLISHMENT – A place where business is conducted, where goods are sold and operates
from a single physical location. Legally registered with the Business Permits and Licensing Office (BPLO)
and issued with a corresponding business permit by BPLO.

CONSUMER/ PURCHASER – a person who purchases goods in retail for personal use or consumption.

DAMAGED ITEMS – loss or harm to a product due to design, negligence or carelessness of a person
other than the consumer.

DEFFECTIVE – a product that is unfit for intended use, or a product that is inherently and unreasonably
dangerous due to its design, assembly or manufacture.

ITEM PURCHASED – items bought by the consumer at a full price in exchange for money or equivalent.

ITEMS FOR PERSONAL USE – items bought to be consumed by the consumer or end user.

MISHANDLED ITEMS – items that dealt with clumsily and inefficiently by a person other than the
consumer/ purchaser.

OFFICIAL RECEIPT – it is a written evidence of sale issued by the seller to the purchaser as well as an
acknowledgement of collection of payment in the ordinary course of trade or business.

RETURN AND EXCHANGE POLICY – are written rules that provide for the process by which customers
return or exchange unwanted or defective merchandise that they have purchased previously.

SECTION 3. NOTICE REQUIREMENT. Every business establishment engaged in the business of consumer
product retail or sale must conspicuously place a written notice of its return and exchange policy inside
their respective business establishments or at the entrance thereof. The return and exchange policy must
be written in a clear language which can easily be understood by the general public.

SECTION 4. PROHIBITION – Every business establishment engaged in the sale or retail of any consumer
product shall not allow or cause to be posted the words “No Return, No Exchange” or words to such effect
be written into the contract o sale, receipt of sales transaction, in any documents as evidence of sale, or
anywhere in the store or business establishment.1

SECTION 5. MINIMUM STANDARDS FOR RETURNS AND EXCHANGE – Every return and exchange policy
must contain the following:

1
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
 1. The number of days within which an item may be returned or exchanged by the
consumer or purchaser.
2. In case of repair of the product sought to be returned or exchanged, the number of days
the same shall be repaired, which should not be more than 15 days for products with
available parts or 30 days in the event the needed parts are not available.
3. In the event the store fails to repair the item sought to be returned or exchanged within
the timeframe they have provided for its repair, the consumer or purchaser shall be
allowed to have the same replaced with the same item and model.
4. In the event such item sought to be replaced is no longer available the consumer or
purchaser shall be given a full refund of the amount paid by the latter for such product.

SECTION 6. DEFAULT POLICY – In the event a business establishment fails to properly post or place its
written return and exchange policy as required by Section 3 hereof or in the event the latter has no return
or exchange policy, the purchaser or consumer shall be allowed to return the item purchased within seven
days thereof.

Provided, that the consumer or purchaser presents to such business establishment the official
receipt covering the transaction for the sale of the item sought to be returned. Thereafter the business
establishment shall refund the full amount the purchaser or consumer paid for such item returned.

SECTION 7. ITEMS TO BE EXCHANGE OR RETURNED BEYOND SEVEND DAYS – In the event the
purchaser or consumer fails to return or exchange the item purchased from a business establishment
within seven days, and the same is defective , the latter shall have the following remedies:

a. Avail of such remedies provided in the warranty card issued by the business establishment.
b. In the absence of such warranty card, the purchaser may request that the defective item be
repaired, replaced with the same item and model or refunded; such remedy shall be
successive in nature and availment of one shall not bar the others.
c. Such remedies provided in the Consumer Act of the Philippines.2
On a separate page prepare and list such remedies specified in Consumer Act. What is the
coverage and procedure./

SECTION 8. ITEMS WHICH ARE NOT COVERED – The following items are not covered by the default policy
stated in SECTION 6 hereof:

a. Mishandle items, or damaged items attributable to the fault and negligence of the consumer or
purchaser.
b. Consumable items.
c. Any articles of clothing ,when the same have been used by the purchaser or consumer prior to its
return or exchange.

2
RA 7394
 d. Underwear, lingerie and other similar items for personal use provided that the same are still
sealed within its original packaging and has not been used nor fitted by the purchaser or
consumer.
e. Second-hand items may be returned or exchange within the timeframe agreed upon by such
parties, in the absence thereof, the default policy shall apply.
f. As is where is sales
g. Add more items of exclusion research

SECTION 9. PENALTY – The following penalties shall be imposed against any business establishment who
fail to comply with the above mentioned provisions:

a. Failure to post or place the its return and exchange policy;

FIRST OFFENSE - 1,000 pesos for the first month of failure to post such return and
exchange policy
SECOND OFFENSE - 3,000 pesos for the second month of failure to post such return and
exchange policy
THIRD OFFENSE- 5,000 pesos for every month of failure to post or place such return and
exchange policy

Furthermore, such business establishment shall not be allowed to renew its business permit
unless the penalties the latter has incurred pursuant to this ordinance have been duly settled.

b. Failure or refusal to comply with the 7 days return or exchange policy:

FIRST OFFENSE - 1,000 pesos

SECOND OFFENSE - 3,000 pesos
THIRD OFFENSE- 5,000 pesos revocation of its business permit and issuance of closure
order by the Business Permit and Licensing Office.

SECTION 10. IMPLEMENTING RULES AND REGULATIONS – The Business Permit and Licensing Office shall
formulate such rules and regulations needed for the implementation of this ordinance. Such rules and
regulations shall take effect after its publication once a week for three consecutive weeks in a newspaper
of general circulation.

SECTION 11. SEPARABILITY CLAUSE – If any provision or portion of this ordinance is found to be a violation
of the constitution and is declared invalid, the provisions or portion hereof which are not so declared shall
remain to be in full force and effect.

SECTION 12. REPEALING CLAUSE - All ordinances, rules and regulations, or parts thereof, in conflict with,
or inconsistent with any of the provisions of this Ordinance are hereby repealed or amended accordingly.
SECTION 13. EFFECTIVITY CLAUSE. This ordinance shall take effect upon its approval and fifteen (15) days
after publication in a newspaper of local circulation.

Adopted : ______________,2016.