IRR of no shortchanging act set for public hearing today

CEBU, Philippines - The implementing rules and regulations (IRR) of the No Shortchanging Act or Republic Act 10909 now out and is up for public consultation in Cebu City today.

According to the IRR, the practice of giving exact change to consumers of goods and services should be institutionalized industry-wide.

The IRR said that business establishments must give the exact amount of change to the consumer without waiting for the consumer to ask for it.

"The cashier of the business establishments shall count the change in front of the consumer and place the same on the hand of the consumer or on the change tray," read the IRR.

Business establishments are also required to post notices in every counter to ensure or remind their cashiers to give exact amount of change like "Please demand for your exact change" or any language of literature to such effect.

The IRR also suggests that consumers, for their part, must also ensure that exact amount of change is received immediately after every transaction.

The IRR further cites the common practices of business establishments that are deemed prohibited.

These include shortchanging a consumer even if such change is only of a small amount; changing in any form other than the present currency; and asking the consumers for permission to be exempted from the provisions of this law for any reason including the non-availability of small bills or coins. 

Last July 21, the Congress passed into law  mandating establishments to give exact change — loose bills and coins — to their consumers.

According to the law, businesses, ranging from vendors to corporations and government-owned entities, are not exempted from giving change just because they lack loose bills or coins.

The law says consumers can file a complaint not later than 10 working days after an establishment or seller refuses to give exact change.

Violators will be fined P500 for the first offense. Repeat offenders will be fined P15,000 and their license to operate will be suspended for three months.

A third offense will incur a P25,000-fine and the revocation of the violator's license to operate.

The Bangko Sentral ng Pilipinas has said the lack of small change or centavo coins is due to the inefficient circulation of of coins and not because of shortage.

The central bank says businesses can go to their banks to ask for supply of coins. (FREEMAN)