The Department of Trade and Industry (DTI) issued Department Administrative Order 2103 setting the guidelines on the mode of payment of any consumer commodity.
DTI Undersecretary Ruth Castelo said in Konsyumer atbp on Saturday the DAO signed March 23, 2021 by DTI Secretary Ramon Lopez provides the price of a product or a service should be the same whether paid in cash or by installment, except that the seller can charge “market-oriented interest rates” for the latter.
Castelo said DAO addresses complaints some sellers of motorcycles do not allow cash payment.
“The DAO mandates all persons and companies whether registered or not registered if engaged in the sale or offer of sale of consumer products or service to provide the consumer the option to pay in cash, in installment or a combination of both,” she said.
Castelo said the DAO reiterates sellers cannot slap additional interest if item is bought on credit.
Section 3.2 of the DAO, she said, provides for the release of documents evidencing ownership.
“Upon purchase, whether conditional or not, the buyer should be given a deed of sale or a certificate of ownership,” she said.
Sanctions for violation of the Consumer Act and the Price Tag Law apply under the DAO which include imprisonment of one month to five years and a fine o P500 to P10,000.
