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 Ill, Article 159 of Republic Act No. 7394 or the Consumer Act of the Philippines;

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THEREFORE, certain provisions of DAO No. 5, Series of 2007 and DAO No. 7, Series of 2006, are hereby modified/amended/repealed, for the information, guidance and compliance of all concerned.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

Section 3. Mediation Agreement and Termination of Mediation.

(a)	Mediation Agreement. When mediation is successful, a Mediation Agreement (Annex œB ) 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 œC ) and submit the case for adjudication.

When the consumer complainant 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 œD ) 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 œE  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 therefor; and (e) relief/s granted, if any, and the administrative penalty/ies imposed, if any.
(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 Ill 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 Ill 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 18^th day of December 2013 in Makati City, Philippines.

Recommended by:

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

Approved by:

(SGD) GREGORY L. DOMINGO
Secretary