Retail Trade Law- Finals Reviewer

Consumer Complaints
ARTICLE 159. Consumer Complaints. — The concerned department may commerce an
investigation upon petition or upon letter-complaint from any consumer: Provided, That, upon
a finding by the department of a prima facie violation of any provisions of this Act or any rule or
regulation promulgated under its authority. (DTI, DOH, and DA)
ARTICLE 163. Investigation Procedure.
a) The consumer arbitration officer shall conduct hearings on any complaint received
by him or referred by the Council.
b) Parties to the case shall be entitled to notice of the hearing, and shall be informed
of the date, time and place of the same.
c) The department shall afford all interested parties the opportunity to submit a
statement of facts, arguments, offers of settlement or proposals of adjustments.
d) The Consumer arbitration officer shall first and foremost ensure that the contending
parties come to a settlement of the case.
e) In the event that a settlement has not been effected, the Mediation officer may
now proceed to formally investigate, hear and decide the case.
f) The Consumer arbitration officer may summon witnesses, administer oaths and
affirmations, issue subpoena and subpoena duces tecum, rule upon offers of proof
and receive relevant evidence, take or cause deposition to be taken whenever the
ends of justice would be served thereby, regulate the course of the hearing, rule on
any procedural request or similar matter and decide the complaint.

The complaints shall be decided within fifteen (15) days from the time the investigation
was terminated.
ARTICLE 164. Sanctions. — cease and desist order, such order shall specify the acts that
respondent shall cease and desist from and shall require him to submit a report of compliance
therewith within a reasonable time.
a. That such order shall specify the acts that respondent shall cease and desist from
and shall require him to submit a report of compliance therewith within a
reasonable time
b. the acceptance of a voluntary assurance of compliance
c. an assurance to comply with the provisions of this Act
d. an assurance to refrain from engaging in unlawful acts
e. an assurance to comply with the terms and conditions specified
 f. an assurance to recall, replace, repair, or refund the money value of defective
products distributed in commerce
g. an assurance to reimburse the complaint out of any money or property in
connection with the complaint

- the imposition of administrative fines in such amount as deemed reasonable by the

Secretary, which shall in no case be less than Five hundred pesos (P500.00) nor more
than Three hundred thousand pesos (P300,000.00) depending on the gravity of the
offense, and an additional fine of not more than One thousand pesos (P1,000.00) or
each day of continuing violation.
ARTICLE 165. Appeal from Orders. Any order, not interlocutory, of the Consumer arbitration
officer, becomes final and executory unless appealed to the Department Secretary concerned
within fifteen (15) days from receipt of such order. An appeal may be entertained only on any
of the following grounds:
a. grave abuse of discretion
b. in excess of the jurisdiction of authority
c. the order is not supported by the evidence

ARTICLE 166. Decision on Appeal. — The Secretary shall decide the appeal within thirty (30)
days from receipt thereof. The decision becomes final after fifteen (15) days from receipt
thereof unless a petition for certiorari is filed with the proper court.

E-commerce Act
SECTION 3(3). Objective. — This Act aims to facilitate domestic and international dealings,
transactions, arrangements, agreements, contracts and exchanges and storage of information
through the utilization of electronic and technology and to promote the universal use of
electronic transactions in the government and by the general public.
SECTION 4(4). Sphere of Application. — This Act shall apply to any kind of electronic data
message and electronic document used in the context of commercial and non-commercial
activities to include domestic and international dealings, transactions, arrangements,
agreements, contracts and exchanges and storage of information.
SECTION 6(6). Legal Recognition of Electronic Data Message. — Information shall not be denied
validity or enforceability solely on the ground that it is in the form of an electronic data
message purporting to give rise to such legal effect, or that it is merely incorporated by
reference in that electronic data message. (Non-discrimination Rule)
SECTION 7(7). Legal Recognition of Electronic Documents. — Electronic documents shall have
the legal effect, validity or enforceability as any other document or legal writing. For evidentiary
purposes, an electronic document shall be the functional equivalent of a written document
under existing laws. (Parity Rule/Same Effect)
SECTION 8(8). Legal Recognition of Electronic Signatures. — An electronic signature on the
electronic document shall be equivalent to the signature of a person on a written document if
the signature is an electronic signature and proved by showing that a prescribed procedure, not
alterable by the parties interested in the electronic document. (Parity Rule/Same Effect)
SECTION 11(11). Authentication of Electronic Data Messages and Electronic Documents. —
Until the Supreme Court by appropriate rules shall have so provided, electronic documents,
electronic data messages and electronic signatures, shall be authenticated by demonstrating,
substantiating and validating a claimed identity of a user, device, or another entity in an
information or communication system, among other ways, as follows:
E-signature Authentication Process. The electronic signature shall be authenticated by
proof that a letter, character, number or other symbol in electronic form representing the
persons named in and attached to or logically associated with an electronic data message,
electronic document.
Under the REE, an electronic or digital signature may be authenticated in any of the
following ways:
a. By evidence that a method or process was utilized to establish an electronic signature or
digital signature and verify the electronic signature or digital signature;
b. By any other means provided by law; or
c. By any other means satisfactory to the judge as establishing the genuineness of the
electronic signature or digital signature.
E-document Authentication Process. The electronic document shall be authenticated by
proof that an appropriate security procedure, when applicable was adopted and employed for
the purpose of verifying the originator of an electronic data message or electronic document.
The Court may adopt the following:
a. Use of electronic notarization systems as necessary and advisable
b. Certificate of authentication on printed or hard copies of the electronic documents
or electronic data messages by electronic notaries
The person seeking to introduce an electronic data message or electronic document in
any legal proceeding has the burden of proving its authenticity. (Burden of Proof)
SECTION 12(12). Admissibility and Evidential Weight of Electronic Data Messages or Electronic
Documents. — In any legal proceedings, nothing in the application of the rules on evidence
shall deny the admissibility of an electronic data message or electronic document in evidence
(Non-discrimination Rule)
a. On the sole ground that it is in electronic form; or
b. On the ground that it is not in the standard written form
SECTION 32(31). Obligation of Confidentiality. — Except for the purposes authorized under this
Act, any person who obtained access to any electronic key, electronic data message or
electronic document, book, register, correspondence, information, or other material pursuant
to any powers conferred under this Act, shall not convey to or share the same with any other
person. (Confidentiality Rule)
a. Hacking or cracking which refers to unauthorized access into or interference in a
computer system/server or information and communication system.
b. Piracy or the unauthorized copying.
Infringes of intellectual property rights shall be punished by a minimum fine of One
hundred thousand pesos (P100,000.00) and a maximum commensurate to the damage incurred
and a mandatory imprisonment of six (6) months to three (3) years

Data Privacy Act

SEC. 2. Declaration of Policy. – It is the policy of the State to protect the fundamental human
right of privacy, of communication while ensuring free flow of information to promote
innovation and growth. (Objective)
SEC. 4. Scope. – This Act applies to the processing of all types of personal information and to
any natural and juridical person involved in personal information processing. (Scope of
Coverage)
SEC. 8. Confidentiality. – The Commission shall ensure at all times the confidentiality of any
personal information that comes to its knowledge and possession. (Confidentiality Rule)
SEC. 12. Criteria for Lawful Processing of Personal Information. – The processing of personal
information shall be permitted only if not otherwise prohibited by law, and when at least one of
the following conditions exists:
a. The data subject has given his or her consent;
b. The processing of personal information is necessary and is related to the fulfillment
of a contract with the data subject or in order to take steps at the request of the
data subject prior to entering into a contract;
c. The processing is necessary for compliance with a legal obligation to which the
personal information controller is subject;
d. The processing is necessary to protect vitally important interests of the data subject,
including life and health;
 e. The processing is necessary in order to respond to national emergency, to comply
with the requirements of public order and safety, or to fulfill functions of public
authority which necessarily includes the processing of personal data for the
fulfillment of its mandate; or
f. The processing is necessary for the purposes of the legitimate interests pursued by
the personal information controller or by a third party or parties to whom the data
is disclosed, except where such interests are overridden by fundamental rights and
freedoms of the data subject which require protection under the Philippine
Constitution.
SEC. 13. Sensitive Personal Information and Privileged Information. – The processing of sensitive
personal information and privileged information shall be prohibited, except in the following
cases:

a. The data subject has given his or her consent.

b. The processing of the same is provided for by existing laws and regulations

c. The processing is necessary to protect the life and health of the data subject or
another person.

d. The processing is necessary to achieve the lawful and noncommercial objectives of

public organizations and their associations.

e. The processing is necessary for purposes of medical treatment, is carried out by a

medical practitioner or a medical treatment institution, and an adequate level of
protection of personal information is ensured; or

f. The processing concerns such personal information as is necessary for the

protection of lawful rights and interests of natural or legal persons in court
proceedings.

SEC. 16. Rights of the Data Subject. – The data subject is entitled to:

Access File a Complaint

Erasure/Blocking Damages

Informed Data Portability

Object Rectify
Retail Trade Liberalization Act

Section 2. Declaration of Policy. – It is the policy of the State to promote consumer welfare in
attracting promoting and welcoming productive investment that will bring down price for the Filipino
consumer, create more jobs, promote tourism, assist small manufacturers, stimulate economic growth and
enable Philippine goods and services to become globally competitive through the liberalization of the retail
trade sector.

Pursuant to this policy, the Philippine retail industry is hereby liberalized to encourage Filipino and
competitive retail trade sector in the interest of empower the Filipino consumer through lower prices, higher
quality goods, better services and wider choices. (Objective)

Section 2. Section 5 of Republic Act No. 8762 is hereby amended to read as follows:

“Section 5. Foreign Equity Participation. – Foreign-owned partnerships, associations, and

corporations may, upon registration with the Securities and Exchange Commission (SEC), or
in case of foreign-owned single proprietorships, upon registration with the Department of
Trade and Industry (DTI), engage or invest in the retail trade business, under the following
conditions:

“(a) A foreign retailer shall have a minimum paid-up capital of Twenty-five million pesos
(P25,000,000.00);

“(b) The foreign retailer’s country of origin does not prohibit the entry of Filipino retailers;
and

“(c) In the case of foreign retailers engaged in retail trade through more than one (1)
physical store, the minimum investment per store must be at least Ten million pesos
(P10,000,000.00): Provided, That this requirement shall not apply to foreign investors and
foreign retailers who are legitimately engaged in retail trade and were not required to
comply with the minimum investment per store at the time of the effectivity of this
Act: Provided, further, That proof of qualification to engage in retail trade under Republic
Act No. 8762 and its implementing rules and regulations is submitted to the DTI.”

“The foreign retailer shall be required to maintain in the Philippines at all times the paid-up
capital of Twenty-five million pesos (P25,000,000.00), unless the foreign retailer has notified
the SEC or the DTI, whichever is appropriate, of its intention to repatriate its capital and
cease operations in the Philippines. The actual use in Philippine operations of the minimum
paid-up capital shall be monitored by the SEC, or by the DTI, whichever is appropriate.

4 Purposes of RTLA
1.  Lowering of the Minimum Paid-up Capital Requirement and Investment Per
Store Requirement- as seen on Amended Section 2
2. Removal of Public Offering Requirement- r etail enterprises with more than 80% of
foreign ownership are no longer required to publicly offer 30% of their share in the
Philippines.
3. Preferential use of Filipino Labor and Promotion of Locally Manufactured
Products
4. Change of Regulatory Agency- Partnerships, associations, and corporations are now
under the regulation of the SEC instead of the DTI. Nevertheless, the DTI remains to
have authority over foreign retailers who have or will have sole proprietorship in the
Philippines.