DTI Reiterates Provisions on ?No Return, No Exchange? Policy

The Department of Trade and Industry ? National Capital Region (DTI-NCR) monitored a total of 23 establishments which include supermarkets, hardwares, shopping malls, and boutiques. Based on the report, many stores are complying with the rules on the Prohibition of No Return, No Exchange Policy.

NCR enforcers checked the official receipts issued by these establishments, to see if there is a ?No Return, No Exchange? statement indicated. Pursuant to the Implementing Rules and Regulations of 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, the words ?No Return, No Exchange?, or words to such effect shall not be written into the contract of sale, receipt or sales of transaction, in any documents as evidence of sale, or anywhere in the store or business establishment. ?All the establishments monitored are abiding with this provision. There were no violations committed,? Pelayo reported.

Recurring complaints on ?No Return No Exchange? Policy prompted DTI-NCR to conduct a surprise monitoring on several business establishments in key areas in Metro Manila. Assistant Secretary Angel L. Pelayo urges the consumers to be more knowldgeable of the said policy when purchasing items especially from major shopping centers. ?We believe that majority of the business outlets in Metro Manila are operating based on fair trade practices in accordance to the law,? Pelayo stressed.

While most of the stores do not have ?No Return No Exchange? statements in their official receipts, some exercise a reasonable degree of verification for requests for merchandise returns from customers who could not present a proof of purchase. The following statements are written in their official receipts or stores instead: ?Keep receipt for item return or exchange. Valid only within 7 days from date of purchase,? or ?Merchandise exchange is allowed within 7 days of purchase. Please present your receipt.?

An official from a major shopping center said in a statement: ?The Return and Exchange policy that are displayed at the counters are meant to educate the customers about our general store policy and encourage the prompt return of an item within a week. The seven day prescription period is not even absolute in itself since the stores have graciously allowed such type of returns even beyond the prescriptive method.?

Pelayo reiterated that ?customers have the right to return defective or substandard goods or demand for remedies, in case of imperfect service. However, consumers also have the repsonsibility to know when they can return and when their request may be denied by an establishment.? Based on the provisions of DAO No. 2 of 1993, only defective items can be returned or exchanged.

DTI-NCR will continue to monitor business establishments to ensure that consumer welfare is upheld. In case a store is found violating the prohibition on ?No Return, No Exchange? policy, criminal and administrative penalties may be charged. Criminal penalties range from P500.00 to P 20,000.00 or imprisonment from 3 months to 2 years. Imposition of administrative fines in such amount as deemed reasonable, range from P500.00 to P 300,000.00 depending on the gravity of the offense, and an additional fine of not more than P1,000.00 for each day of continuing violations.

To file a consumer complaint against stores violating the prohibition of ?No Return, No Exchange? Policy, be ready with the following information: the name and address of the complainant and the firm being complained about, the acts of ommissions constituting the offense including the approximate date, place and time of its commission, the remedy sought, and other relevant information the consumer may have regarding the matter.

For more information on how to file a consumer complaint, please call 751-3330 or visit www.dtincr.ph. (end)

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