Amendments to Certain Provisions of DAO No. 05, Series of 2007 and DAO No. 07, Series of 2006

December 18, 2013

DTI DEPARTMENT ADMINISTRATIVE ORDER NO. 13-02, S. 2013

 

WHEREAS, it is imperative for the Department of Trade and Industry (DTI) to assure, as far as practicable, simple and easy access on the part of the consumers to seek redress for their complaints and grievances as prescribed under Title V, Chapter III, Article 159 of Republic Act No. 7394 or the Consumer Act of the Philippines; TAEDcS

NOW THEREFORE, certain provisions of DAO No. 5, Series of 2007 and DAO No. 7, Series of 2006, are hereby modified/amended/repealed, for the information, guidance and compliance of all concerned.

RULE I

Title and Scope

SECTION 1. Title.— This Order shall be referred to as "Amendments to Certain Provisions of DAO No. 05, Series of 2007 and DAO No. 07, Series of 2006".

SECTION 2. Scope. — This Order shall apply solely to consumer complaints under Title V, Chapter III, Article 159 of Republic Act No. 7394 or the Consumer Act of the Philippines.

This Order shall not apply to formal charges filed by the DTI for violation/s of other trade and industry laws including Republic Act No. 7581 or the Price Act and its Implementing Rules and Regulations (IRR) under DAO No. 07, Series of 2006, hence, DAO No. 05, Series of 2007 and DAO No. 07, Series of 2006 shall continue to be applicable.

RULE II

Mediation

SECTION 1. Notice and Schedule of Mediation.— On the day a consumer complaint is received, the DTI shall issue immediately on the said date a written Notice of Mediation (Annex "A") setting the date, time, and place of the mediation conference and serving notices to all Parties through, courier, personal delivery or postal services with proof of service and receipt.

All actions information including proof of service and receipt of a copy of the notice and schedule of mediation through any of the aforementioned means of communication are duly recorded and updated in the DTI Customer Relationship Management (CRM) System, specifically in its Action Module.

For the purpose of this Order, DTI CRM is a browser-based application that facilitates and systematizes the flow of documents or reports of a record. Further, it is a process of tracking the record, current user, descriptive details and status of all consumer complaint documents. Finally, it provides up-to-date and accurate document information relative to consumer complaints received by the DTI.

SECTION 2. Mediation Conference.— Mediation is mandatory, meaning, any complaint shall not be submitted for arbitration without passing said stage. More than one conference may be scheduled from receipt of the consumer complaint by the DTI. HSDCTA

SECTION 3. Mediation Agreement and Termination of Mediation.—

(a) Mediation Agreement.When mediation is successful, a Mediation Agreement (Annex "B") shall be immediately prepared and executed by the parties. Said Agreement shall be final and executory.

(b) Termination of Mediation.When no settlement is reached, or the party complained of or his/her duly authorized representative fails or refuses to appear or participate in the scheduled mediation, the Mediation Officer shall immediately issue a Notice of Failure of Mediation (Annex "C") and submit the case for adjudication.

When the consumer complaint or his/her duly authorized representative fails or refuses to appear or participate in the scheduled mediation, the Mediation Officer shall dismiss the complaint without prejudice and archive the same.

SECTION 4. Duration of Mediation Period. — The total number of days under Rule II on Mediation shall not exceed ten (10) working days from receipt of the complaint.

RULE III

Adjudication

SECTION 1. Notice of Adjudication and Submission of Position Paper.— On the day of the receipt of the Failure of Mediation, the Adjudication Officer shall issue immediately on the said date a Notice of Adjudication (Annex "D") directing both parties to simultaneously submit their respective position papers with statement of facts, arguments, supporting affidavits and other documentary evidence within five (5) working days from receipt of such Notice of Adjudication and/or setting date/s of hearing if necessary.

Said Notice of Adjudication, which is equivalent to a summons and/or dates of hearing, shall be served through courier, personal delivery or postal services with proof of service and receipt.

All actions information including proof of service and receipt of a copy of the notice and schedule of Adjudication through any of the aforementioned means of communication are duly recorded and updated in the DTI Customer Relationship Management (CRM) System, specifically in its Action Module.

SECTION 2. Effect of Non-Submission of Position Paper.— When despite notice, no position paper is submitted by either of the Parties within the period stated in Section 1 above, an Order shall be issued declaring either Party to have waived its right to file one and submitting the case for decision based on the documents or evidence available on records.

SECTION 3. Review, Assessment, Rendition and Service of Decision.— (a) Rendition of Decision.The Adjudication Officer shall review, assess and render as shown in Annex "E" hereof, a Decision in writing. The Decision shall be clear and concise, and shall contain statements on the:

(a) relevant facts of the case;

(b) issue/s involved;

(c) applicable law and/or jurisprudence;

(d) conclusions and reasons therefore; and

(e) relief/s granted, if any, and the administrative penalty/ies imposed, if any. AEITDH

(b) Service of Decision.A copy of a Decision shall be served on the Parties to the case by personal service or registered mail with proof of service through post registry return card.

SECTION 4. Duration of Adjudication Period. — The total number of days under Rule III on Adjudication shall not exceed twenty (20) working days from receipt of the Failure of Mediation.

RULE IV

Duration of Mediation and Adjudication Period

SECTION 1. Duration of Mediation and Adjudication Period. — In accordance with Rule II on Mediation and Rule III on Adjudication, the total number of mediation and adjudication period shall not exceed thirty (30) working days.

RULE V

Postponement

SECTION 1. Postponement.— In addition to the period specified in Rule IV, Section 1 above, postponement for valid reasons may be allowed for a total period not exceeding five (5) working days.

RULE VI

Other Provisions

SECTION 1. Repealing Clause. — All other provisions of DAO No. 05, Series of 2007 and DAO No. 07, Series of 2006 or any portion thereof and other DAOs, Department Orders (DOs), issuances, or any portion thereof that are inconsistent with this Order are hereby repealed, or modified, or amended accordingly.

SECTION 2. Separability Clause.— If for any reason, any section, provision, or part of this Order, or the application of such section, provision, or part to any person, group, or circumstances is declared invalid or unconstitutional, the remainder of this Order shall not be affected by such declarations.

SECTION 3. Effectivity. — This Order shall take effect fifteen (15) days after its publication in two (2) newspapers of general circulation. Three (3) copies of this Order shall be sent to the National Administrative Register at the University of the Philippines Law Center and to the Official Gazette.

Issued this 18th day of December 2013 in Makati City, Philippines.

Recommended by:

(SGD.) VICTORIO MARIO A. DIMAGIBAOfficer-in-Charge, Consumer Welfare and Business Regulation Group

Approved by:

(SGD.) GREGORY L. DOMINGOSecretaryDepartment of Trade and Industry

ANNEX A

To:	____________________	____________________
	Party Complaining	Party Complained of
	____________________	____________________
	____________________	____________________
	____________________	____________________

Notice of Mediation(not applicable to a Formal Charge)

Pursuant to Republic Act No. 9285, otherwise known as the Alternative Dispute Resolution Act of 1984 and Section I, Rule X of Department Administrative Order No. 7, series of 2006, the policy of fostering prompt, economical and amicable resolution of disputes in accordance with principles of integrity of determination by the parties, and that the decision making authority in the mediation process rests with the parties, is hereby adopted. SaETCI

IN VIEW THEREOF, the parties to this case are hereby requested and encouraged to be present in the mediation conference to be held on ______________, __________ am/pm at the ________________________________________.

Representatives shall not be recognized unless a Special Power of Attorney (SPA) executed for such purpose and duly acknowledged before a Notary Public is presented to the undersigned.

BE GUIDED ACCORDINGLY.

_______________, ____________________.

____________________

 

( )	Sent via registered mail	( )	Personal Service
( )	Rule II, Section 1
Copy for the Complainant
	Registry Receipt No. ___________	Received by	:__________
	Date of Mailing: _______________	(position)	:__________
		Date	:__________
Copy for the Party Complained of
	Registry Receipt No. ___________	Received by	:__________
	Date of Mailing: _______________	(position)	:__________
		Date	:__________

 

 

ANNEX B

Mediation Agreement

KNOW ALL MEN BY THESE PRESENTS:

This Agreement is made and entered into by and between/among: cCSEaA 

___________________________________, of legal age, single/married, Filipino, and with residence and postal address at __________________________________, herein after referred to as the Party Complaining,

- and -

___________________________________, likewise of legal age, single/married, Filipino, and with residence and postal address at __________________________________________________, hereinafter referred to as the Party Complained of;

WITNESSETH:

BRIEF NARRATION OF FACTS BY THE PARTY COMPLAINING:

____________________________________________________________________

BRIEF NARRATION OF FACTS BY THE PARTY COMPLAINED OF:

____________________________________________________________________

CLAIMS/PRAYERS OF THE PARTY COMPLAINING:

• ________________________________________________________________ ________________________________________________________________ ________________________________________________________________

PROPOSAL OF THE PARTY COMPLAINED OF:

____________________________________________________________________

COUNTER-PROPOSAL OF THE PARTY COMPLAINING:

____________________________________________________________________

TERMS AND CONDITIONS AGREED ON:

• ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________

PERIOD OF COMPLIANCE: cDCEHa

Within __________ ( ) days from execution hereof.

EFFECTIVITY:

This Agreement shall take effect immediately upon signing hereof.

IN WITNESS WHEREOF, the parties have hereunto set their hands this _____ day of _______________ 20 ____, in ____________________.

 

___________________________________	________________________________
Party Complaining/	Party Complained of/
Duly Authorized Representative	Duly Authorized Representative
Valid ID No. _______________	Valid ID No. _______________

ACKNOWLEDGMENT

REPUBLIC OF THE PHILIPPINES ) ) S.S.

BEFORE ME, a Notary Public for and in __________ this _____ day of _______________ 20___, personally appeared the above parties showing to me their respective IDs, known to me and to me known to be the same persons who executed the foregoing instrument, which they acknowledged to me as their free act and voluntary deed.

WITNESS MY HAND AND SEAL.

Doc. No.

ANNEX C

To:	____________________	____________________
	Party Complaining	Party Complained of
	____________________	____________________
	____________________	____________________
	____________________	____________________

Notice of Failure of Mediation

On _______________, 20____, mediation conference(s) was/were conducted by the undersigned. However, efforts to encourage both parties to settle their differences or at least come to terms failed. As a consequence thereof, it is hereby certified that mediation proceedings failed.

WHEREFORE, the subject issues/concerns raised by the party complaining are deemed submitted for ARBITRATION/ADJUDICATION.

BE GUIDED ACCORDINGLY.

Issued this _____ day of _______________, 20___. AcEIHC

____________________

 

( )	Sent via registered mail	( ) Personal Service
Copy for the Complainant
	Registry Receipt No. ___________	Received by	:__________
	Date of Mailing: _______________	(position)	:__________
		Date	:__________
Copy for the Party Complained of
	Registry Receipt No. ___________	Received by	:__________
	Date of Mailing: _______________	(position)	:__________
		Date	:__________

ANNEX D

____________________________,
Complainant,
	ADM. CASE NO. _______
- versus -
	FOR: Violation of _______
	_________________
	_________________
____________________________,
Respondent.
Ms/Mr. ____________________/	Cc:	____________________
Owner/Proprietor of		Complainant
__________________________		__________________________
Respondent		__________________________
Located at ______________________________		__________________________
__________________________________
__________________________________

Notice of Adjudication

Pursuant to and by virtue of Section 4, Rule IX of Department Administrative Order No. 7, Series of 2006, you are hereby ordered to file you Answer to the hereto attached Complaint/Formal Charge within ten (10) working days from receipt of this Notice which is equivalent to a Summons, and not to file any of the prohibited pleadings enumerated under said Order.

Please file your Answer addressed to the undersigned at __________________________________________________________________________________________________________. Further, since efforts to mediate the subject issues and concerns failed, you are hereby directed to simultaneously submit your respective Position Papers on said issues and concerns.

Attached is a copy of the complaint together with the documents supporting the same.

FOR YOUR STRICT COMPLIANCE.

Issued this _____ day of __________ 20___ in _______________.

_____________________

Name of Recipient:	____________________	____________________
	(for the complainant)	(for the respondent)
Position	:____________________	____________________
Date of Receipt	:____________________	____________________
Refused to receive	:(  )	Reason:	____________________
			____________________
			____________________
(  ) Rule III, Section 1

ANNEX E

Outline of a Decision

I. Caption of the Case

a. Complainant

b. Respondent

c. Case No.

d. Violation(s)

II. Title (Decision)

III. The Parties

a. Names

b. Legal Personality/Capacity to sue or be sued

c. Residence/Business Address

IV. Relevant Facts

a. transaction(s) entered

b. dates

c. goods/services involved

d. cause(s) of action

e. relief(s) prayed for/defenses CacEID

V. Evidence Presented and the Purpose Thereof

VI. Issue(s)

VII. Applicable Laws/Jurisprudence

VIII. Arguments/Discussions

IX. Dispositive Portion

a. Conclusions and reasons therefor

b. Reliefs granted/Penalties Imposed (if any)

Published in The Philippine Star on December 23, 2013.