Primer on Republic Act №10909 (No Shortchanging Act of 2016) & it’s Legal Application with Delivery Riders
Republic Act №10909, also known as the No Shortchanging Act of 2016, is a Philippine law aimed at protecting consumers by mandating the provision of exact change in all business transactions. It prohibits establishments from denying consumers the full monetary change they are entitled to, regardless of the transaction amount.
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Key Features of RA 10909
1. Purpose
The law seeks to:
• Uphold the rights of consumers to receive the exact amount of change.
• Address the common practice of shortchanging or giving insufficient change during transactions.
• Instill a culture of fairness, accountability, and professionalism among businesses.
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2. Coverage
The law applies to all business establishments involved in the sale of goods and services, including but not limited to:
• Retail stores
• Food establishments
• Public markets
• Service providers
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3. Prohibited Acts
Under the law, the following acts are prohibited:
• Shortchanging: Failing or refusing to give the exact change to a consumer.
• Giving of Insufficient Change: Providing candy or other items as a substitute for monetary change.
• Rounding Off: Arbitrarily rounding off amounts to avoid giving exact change.
• No Stock of Change Excuse: Claiming the absence of smaller denominations as a reason not to provide exact change.
• Refusal to Issue a Receipt: Not providing an official receipt for the transaction.
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4. Responsibilities of Business Establishments
Business establishments are required to:
• Provide exact change without any request or prompting from the consumer.
• Display signs or notices informing customers of their right to receive exact change.
• Maintain a sufficient supply of coins and bills for transactions.
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5. Penalties for Violations
Violators of RA 10909 are subject to the following penalties:
• First Offense: Fine of PHP 500.
• Second Offense: Fine of PHP 5,000.
• Third Offense: Fine of PHP 15,000 and suspension of business operations for three months.
• Fourth and Subsequent Offenses: Fine of PHP 25,000 and revocation of the business license.
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6. Enforcement
The Department of Trade and Industry (DTI) is the primary agency responsible for implementing and enforcing RA 10909. Consumers may report violations to the DTI or its regional offices.
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Consumer Rights Under the Law
Consumers are entitled to:
1. Exact Monetary Change: No substitutions or excuses for insufficient change.
2. Receipt of Payment: A receipt must be issued to ensure transparency and accountability.
3. Reporting of Violations: The right to file complaints against establishments violating the law.
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Impact and Importance
RA 10909 empowers consumers by:
• Ensuring fairness in daily transactions.
• Promoting ethical business practices.
• Encouraging better handling and circulation of currency in the market.
For businesses, compliance with the law not only avoids penalties but also builds consumer trust and goodwill.
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Q: Does the No Shortchanging Act apply to Delivery Riders such as Grab or Food Panda?
A: Yes, Republic Act №10909 (No Shortchanging Act of 2016) applies to delivery riders like those working for Grab, Food Panda, and similar platforms, as they are engaged in commercial transactions involving the sale of goods and services.
Application of RA 10909 to Delivery Riders
1. Obligation to Provide Exact Change:
o Delivery riders represent the business establishments they deliver for and are therefore required to provide exact change to customers during cash transactions.
o The rider acts as an agent of the business and is expected to uphold consumer rights as outlined by the law.
2. Prohibition Against Shortchanging:
o Riders cannot deny customers the exact change or substitute it with non-monetary items (e.g., candies).
o Claiming they do not have sufficient coins or bills for change is not a valid excuse under the law.
3. Responsibility of the Platform or Merchant:
o It is the responsibility of the platform or merchant (e.g., Grab or the partner restaurant) to ensure that their riders are equipped to provide the exact change.
o If a rider fails to comply, both the rider and the merchant/platform may be held accountable.
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Consumer Remedies
If a delivery rider fails to provide exact change, consumers can:
1. File a Complaint:
o Report the incident to the Department of Trade and Industry (DTI).
o Provide details of the transaction, including receipts, rider information, and any communication with the platform.
2. Contact the Platform:
o Most delivery platforms, such as Grab, have customer service channels to address complaints. Consumers can report the issue directly to the platform for resolution.
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Exemptions
RA 10909 does not explicitly exempt delivery riders or similar intermediaries. However, if the transaction is conducted through cashless payments (e.g., GrabPay, GCash, or credit cards), the law does not apply, as there is no need for physical change.
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Best Practices for Delivery Riders
To comply with RA 10909, delivery riders should:
1. Carry a sufficient supply of coins and small bills to ensure they can give exact change.
2. Confirm the total payment and change required with the customer before completing the transaction.
3. Immediately inform the merchant or platform if they encounter difficulties in adhering to the law.
RA 10909 ensures fairness and consumer protection in all forms of business transactions, including those facilitated by delivery services.
