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Philippines
Department Administrative Order No. 07, Series of 2006, instituting Simplified and Uniform
Rules of Procedure for Administrative Cases Filed with the Department of Trade & Industry
(DTI) for Violations of the Consumer Act of the Philippines and Other Trade and Industry
Laws
Machine translation

 RULE I TITLE AND CONSTRUCTION

o Section 1. Title of the Rules.
o Section 2. Construction.
o Section 3. Applicability of the Revised Rules of Court.
 RULE II DEFINITION OF TERMS
o Section 1. Basic Terms.
 RULE III JURISDICTION
o Section 1. Cases Covered.
o Section 2. Cases not Covered.
o Section 3. Handling of Certain Cases.
o Section 4. Prosecution of a Separate Action/Prohibition on Forum Shopping.
o Section 5. Jurisdiction of Adjudication Officers (AOs).
o Section 6. Concurrence of Jurisdiction.
o Section 7. Jurisdiction Over Cases of Violation of PSB – Revised Rules on
Freight Forwarding.
o Section 8. Qualifications of Adjudication Officers.
o Section 9. Consumer Arbitration Officers, Acting Consumer Arbitration Officers,
and Hearing Officers; To Whom They Refer To.
o Section 10. Powers and Duties of the Adjudication Officer.
 RULE IV VENUE
o Section 1. Venue for Complaints Filed by Consumers for Violations of the
Consumer Act.
o Section 2. Venue for Complaints filed for Violations of Trade and Industry Laws,
Including the Price Act and its IRR.
o Section 3. Venue for Formal Charges.
o Section 4. Change of Venue After the Complaint/Formal Charges Has Been Filed.
 RULE V COMMENCEMENT OF ACTION
o Section 1. Commencement of Action.
 o Section 2. Essential Elements and Parts of a Complaint.
o Section 3. Essential Elements and Parts of a Formal Charge.
o Section 4. Form of Complaint and/or Formal Charge.
o Section 5. Rule on Suit Against Associations Without Juridical Personality.
 RULE VI SERVICE OF PLEADINGS AND OTHER PAPERS
o Section 1. Filing and Service of Pleadings.
o Section 2. Service of Summons, Notices, Decisions and Orders.
 RULE VII PROHIBITED PLEADINGS AND MOTIONS
o Section 1. Prohibited Pleadings or Motions.
o Section 2. Motion for Postponement.
 RULE VIII PRESCRIPTION OF ACTIONS
o Section 1. Prescription of Actions Under the Consumer Act.
o Section 2. Prescription of Actions Under Other Cases.
 RULE IX PROCEEDINGS BEFORE THE ADJUDICATION OFFICER
o Section 1. Docketing of Cases and Assignment to an Adjudication Officer.
o Section 2. Preliminary Determination/Dismissal Motu Proprio by the
Adjudication Officer.
o Section 3. Issuance of Summons.
o Section 4. Answer.
o Section 5. Preliminary Order.
o Section 6. Preventive Measure Order.
o Section 7. Temporary Order.
 RULE X MEDIATION
o Section 1. Statement of Policy.
o Section 2. Mediation.
o Section 3. Compromise and Execution During Mediation.
 RULE XI PRELIMINARY CONFERENCE
o Section 1. Next Action When There is Failure of Mediation.
 RULE XII POSITION PAPER; HEARING
o Section 1. Submission of Position Paper and Supporting Evidence.
o Section 2. Hearing.
 RULE XIII DECISION AND ADMINISTRATIVE PENALTIES/SANCTIONS
o Section 1. Decision.
o Section 2. Imposition of Administrative Penalties.
o Section 3. Service of the Decision.
 RULE XIV MOTION FOR RECONSIDERATION
o Section 1. Motion for Reconsideration.
 RULE XV APPEALS
o Section 1. Manner of Appeal.
o Section 2. Decision on Appeal.
o Section 3. Delegation of the Secretary’s Appeal Function.
o RULE XVI EXECUTION OF DECISIONS
o Section 1. When Decision Becomes Final and Executory.
 o Section 2. Execution.
o RULE XVII OTHER PROVISIONS
o Section 1. Treatment of Pending Cases.
o Section 2. Separability Clause.
o Section 3. Repealing Clause.
o Section 4. Effectivity.
DEPARTMENT ADMINISTRATIVE ORDER NO.07
Series of 2006
SUBJECT: Instituting the Simplified and Uniform Rules of
Procedure for Administrative Cases Filed with the
Department of Trade and Industry (DTI) for
Violations of the Consumer Act of the Philippines
and Other Trade and Industry Laws
Pursuant to Article 159 of the Consumer Act of the Philippines (R.A. No. 7394)
(approved on April 13, 1992) and to Sections 2 and 18 of Executive Order No. 913 (entitled
“Strengthening the Rule-Making and Adjudicatory Powers of the Minister of Trade and Industry
in Order to Further Protect Consumers”, issued on October 7, 1983) and to implement more
effectively the said two laws, the following rules and regulations are hereby prescribed and
promulgated:
RULE I
TITLE AND CONSTRUCTION
Section 1. Title of the Rules. – These Rules shall be known as the “Simplified and
Uniform Rules of Procedure for Administrative Cases Filed with the Department of Trade &
Industry (DTI) for Violations of the Consumer Act of the Philippines and Other Trade and
Industry Laws.”
Section 2. Construction. – These Rules shall be liberally construed to carry out their
objective of promoting the just, speedy, and inexpensive resolution of cases. Further, the best
interest of the consumer shall be considered in the interpretation and implementation of the
provisions of these Rules.
Section 3. Applicability of the Revised Rules of Court. – (a) Subject to the requirements
of due process, the technical rules of evidence (Part IV of the Revised Rules of Court) prevailing
in the courts of law shall not be strictly applied hereto.
(b) In the absence of any applicable provision in these Rules, the pertinent provisions of
the Revised Rules of Court shall apply suppletorily.
RULE II DEFINITION OF TERMS
Section 1. Basic Terms. – For purposes of these Rules, the following definitions shall be
observed:
(a) 
“ Consumer ” – means a natural person who is a purchaser, lessee, recipient or
prospective purchaser, lessee or recipient of consumer products or services over which
the DTI has jurisdiction.
(b) 
“ Juridical person ” – means:
1. The State and its political subdivisions;
2. Other corporations, institutions and entities for public interest or
purpose created by law;
 3. Corporations, partnership and associations for private interest or
purpose to which the law grants a juridical personality separate an
distinct from that of each shareholder, partner or
member: Provided, however,  That associations defined by law as
corporations or partnerships de facto or by estoppel shall be
considered as juridical persons under these Rules; and
4. Entities authorized by law to sue and be sued.
(c) 
“ Adjudication Officer ” – means:
1. the Consumer Arbitration Officer (CAO) assigned to adjudicate
the cases mentioned in Section 5 (a), Rule III of this Order. This
term includes the Acting Consumer Arbitration Officer; or
2. the Hearing Officer assigned to adjudicate the cases mentioned in
Section 5 (b), Rule III of this Order.
(d) 
“ Mediation ” – means an alternative mode of dispute resolution forming part of the
adjudication process under Rule X of these Rules, under which the Adjudication Officer,
as defined hereinabove, facilitates communication and negotiation between the parties,
and assists the parties in reaching a voluntary agreement regarding a dispute. This shall
include the mediation conducted by the Consumer Welfare Officer (CWO) at the pre-
adjudication level.
(e)
“Adjudicate” and “adjudication” – includes “mediate” and
“mediation”, respectively.
(f) 
“ Complaint ” – means a sworn written statement of ultimate facts, filed by any consumer
or any person, charging any person (natural or juridical) with any violation of the
Consumer Act, or any Trade and Industry Law, or the Price Act and its IRR.
(g) 
“ Formal Charge ” – means a written statement of ultimate facts, signed and sworn to by
the duly authorized officer or representative of the initiating office or agency, filed by
any office or agency of the DTI, charging any person (natural or juridical) with any
violation of the Consumer Act, or any Trade and Industry Law, or the Price Act and its
IRR.
(h) 
“ Consumer Act ” – refers to Republic Act No. 7394, otherwise known as the “Consumer
Act of the Philippines”, including any future amendment thereto.
(i) 
“ Violations of the Consumer Act ” – refers to any and all of the acts, omissions, and
offenses enumerated in Title II, Chapter I; and Title III, Chapters I, II (except the
provisions on the sealing and testing of instruments of weights and measure), III, IV, V,
VI, and VII of the Consumer Act, as violative of said Act.
(j) 
“ Trade and Industry Law ” – means any Act, Batas Pambansa, Presidential Decree,
General Order, Letter of Instructions, Executive Order, and other similar issuances, as
well as any and all amendments thereto, which regulates trade and industry activities, the
 violation of which subjects the offender to criminal or administrative penalties or civil
liability, or does not subject the offender to any penalty, sanction, or liability at all, and
which law or issuance is subject to the implementation, administration, execution or
enforcement of the Department, such as those enumerated in Section 1 of Ministry Order
No. 69, Series of 1983, as amended, and Department Administrative Order No. 3, Series
of 1993.
(k) 
“Price Act” – refers to Republic Act No. 7581 otherwise known as the “Price Act”.
(l)
“ Department ” or “ DTI ” – refers to the Department of Trade and
Industry.
(m) 
“ Secretary ” – refers to the Secretary of the DTI.
(n) 
“ Regional Office ” – refers to the DTI office having jurisdiction over a particular region
of the Philippines.
(o) 
“ Provincial Office ” – refers to the DTI office having jurisdiction over a particular
province of the Philippines.
(p) 
“ Area Office ” – refers to any office of the DTI-National Capital Region (NCR) which
has jurisdiction over a particular area of Metro Manila.
(q) 
“ Agency ” – refers to any bureau or unit of DTI which handles certain cases.
(r) 
“ This Order ” – refers to this Department Administrative Order.
RULE III
JURISDICTION
Section 1. Cases Covered. – These rules of procedure shall be observed in the
adjudication of:
(a) 
Cases filed by consumers for violations of the Consumer Act. The rules herein that will
govern are, all the rules which apply to violations of the Consumer Act.
If the complainants are DTI offices or agencies ( motu proprio ), the rules which will apply are
those in (b) below.
(b) 
Cases filed by natural or juridical persons or by DTI offices or agencies ( motu proprio )
for violations of Trade and Industry Laws. The rules herein that will govern are, all the
rules which apply to violations of Trade and Industry Laws.
(c) 
Cases filed by natural or juridical persons or by DTI offices or agencies motu proprio for
violations of the Price Act (R.A. No. 7581) and its implementing rules and regulations.
The rules herein that will govern are, all the rules which apply to violations of Trade and
Industry Laws.
 Section 2. Cases not Covered. - Cases which use a procedure other than that provided
under the Consumer Act or other than that provided under E.O. No. 913, are not covered by
these Rules. The following cases are excluded from the coverage and application of these Rules:
(1) 
Cases handled by the Intellectual Property Office (IPO) pursuant to the Intellectual Property Code (R.A.
No. 8293);
(2) 
Cases handled by the Board of Investments (BOI) pursuant to the Omnibus Investments Code (E.O. No.
226 as amended);
(3) 
Cases handled by the Construction Industry Arbitration Commission (CIAC) pursuant to E.O. No. 1008
(issued on February 4, 1985) and the Alternative Dispute Resolution Act of 2004 (approved on April 2,
2004); and
(4) 
Cases handled by the Export Trade Complaints Committee (ETCC) pursuant to DTI Department
Administrative Order No. 11, Series of 1999.
Section 3. Handling of Certain Cases. – (a) For cases involving violations of
R.A. No. 4566 (Contractor’s License Law), as amended, and its implementing rules and
regulations, the Philippine Contractors’ Accreditation Board (PCAB) shall have original and
exclusive jurisdiction over said cases pursuant to R.A. No. 4566 as amended by
P.D. No. 1746. However, with regard to cases involving persons or entities engaging in
construction without a valid PCAB license, same shall constitute violations of a Trade and
Industry Law and accordingly shall be adjudicated under Executive Order No. 913 and these
Simplified and Uniform Rules.
(b)
For cases involving violations P.D. No.1466 (law requiring the use of Philippine
flag vessels), and its revised implementing rules and regulations, the Philippine Shippers’
Bureau (PSB) shall have the option of adjudicating said cases either
(1)
under P.D. No. 1466 and its revised implementing rules and regulations, or (2) under
E.O. No. 913 and these Simplified and Uniform Rules of Procedure. Whenever option no. 2 is
used, only the Hearing Officers of PSB shall have original and exclusive jurisdiction over said
cases, notwithstanding the provisions of Sections 5 and 6, Rule III of these Rules.
Section 4. Prosecution of a Separate Action/Prohibition on Forum Shopping. – (a) Upon
the filing of the complaint, the complainant or the duly authorized officer filing the formal
charge, as the case may be, shall certify under oath therein or in a sworn certification annexed
thereto and simultaneously filed therewith: (a) that the complainant or office of agency
concerned has not theretofore commenced any action or filed any claim involving the same issue
in any court, tribunal or quasi-judicial agency and, to the best of his knowledge, no such other
action or claim is pending therein; (b) if there is such other pending action or claim, a complete
statement of the present status
Page 5 of 26
thereof; and (c) if he should thereafter learn that the same or similar action or claim has been
filed or is pending, he shall report that fact within five (5) days therefrom to the Adjudication
Officer before whom his aforesaid complaint or formal charge is pending.
(b)
 The failure to comply with the foregoing requirement shall not be curable by mere
amendment of the complaint or of the formal charge, but shall be cause for the motu
proprio dismissal without prejudice of the case by the Adjudication Officer.
(c)
Further, should any such separate action be filed prior in time, the Adjudication
Officer, upon notice and hearing, may order the suspension of the action filed under these
Rules if the resolution of the previously initiated action, or any issue therein, is
prejudicial to the resolution of the action filed under these Rules.
Section 5. Jurisdiction of Adjudication Officers (AOs). – (a) Consumer Arbitration Officers
(CAOs) shall have original and exclusive jurisdiction to adjudicate all cases filed by consumers
under the Consumer Act.
(b)
Hearing Officers (HEROs) shall have original and exclusive jurisdiction to
adjudicate: (1) all cases filed by natural or juridical persons for violations of any Trade
and Industry Law; and (2) all motu proprio cases filed under a formal charge (as defined
under these Rules) by any office or agency of the Department for violations of any Trade
and Industry Law, or of the Consumer Act, or of the Price Act and its IRR.
Section 6. Concurrence of Jurisdiction. – Subject to Section 5 above and to Rule IV
hereof, the Provincial, Regional, Area Office, or the agency where the complaint or formal
charge is first filed shall take cognizance thereof to the exclusion of all other offices or agencies
of the Department having jurisdiction over the same case.
Section 7. Jurisdiction Over Cases of Violation of PSB – Revised Rules on Freight
Forwarding. – Notwithstanding the provisions of Sections 5 and 6 of this Rule, only the Hearing
Officers of the Philippine Shippers’ Bureau shall have original and exclusive jurisdiction over
cases involving violations of PSB Administrative Order No. 6, Series of 2005 entitled
“Philippine Shippers’ Bureau (PSB) – Revised Rules on Freight Forwarding”.
Section 8. Qualifications of Adjudication Officers. – Adjudication Officers shall have
such qualifications as required by law, according to whether they are CAOs or Hearing Officers.
Section 9. Consumer Arbitration Officers, Acting Consumer Arbitration Officers, and
Hearing Officers; To Whom They Refer To. – (a) “Consumer Arbitration Officers” are lawyers
who are holding the plantilla positions of Attorney III in the various regional offices of DTI.
“Acting Consumer Arbitration Officers” are DTI employees/officers who will be designated as
Acting Consumer Arbitration Officers by the Undersecretary for Regional Operations Group.
“Hearing Officers” are DTI employees/officers who will designated as Hearing Officers by the
Undersecretary for Regional Operations Group and/or by their Supervising Undersecretary.
(b) Every such designation (whether original or renewal) shall be for a period of not
exceeding three (3) years.
(c) Under this Order, a Consumer Arbitration Officer or an Acting Consumer
Arbitration Officer can be designated further as a Hearing Officer. A Hearing Officer can be
designated further as an Acting Consumer Arbitration Officer.
Section 10. Powers and Duties of the Adjudication Officer. – The Adjudication Officer
shall exercise the following powers and duties:
a. 
Issue summons;
b. 
Administer oaths and affirmations;
c. 
Conduct adjudication;
d. 
Regulate and maintain order during the proceedings;
e. 
Issue subpoena or subpoena duces tecum, motu proprio or when requested by any party
to compel the attendance of witnesses or the production of documents, records or books
during the hearing;
f. 
Take or receive all relevant evidence;
g. 
Rule upon offers of proofs;
h. 
Take or cause deposition to be taken whenever the ends of justice would be served
thereby;
i. 
Rule on any procedural request;
j. 
Issue preliminary orders, preventive orders, and temporary orders;
k. 
Exclude any party, witness, or any other person from the hearing room;
l. 
Render a decision within fifteen (15) days from the time the proceedings were
terminated; and
m. 
Perform such other functions as would contribute to the just, speedy, and inexpensive
resolution of the case.
RULE IV
VENUE
Section 1. Venue for Complaints Filed by Consumers for Violations of the Consumer
Act. – The complaint shall be filed in duplicate with the Provincial Office (or with its field
office) or with its mother Regional Office if the province has no Provincial Office, or in the case
of the National Capital Region (NCR), with the Area Office, situated in the place specified by
the parties in a written agreement executed prior to the filing of the complaint. If there is no such
written agreement, then in any of the following places, at the option of the complainant, to wit:
(a) Place where the transaction was done, wholly or partially;

(b) Place where the violation of the Consumer Act was committed, wholly or partially;

(c)
Place of the execution of the contract sued upon, as it appears therefrom;
(d) 
Place of residence of the complainant at the time of the transaction, or at the time of the
violation, or at the time of the filing of the complaint; and
(e) 
 Place of residence of the respondent, or business domicile if the respondent is a juridical
person, at the time of the transaction, or at the time of the violation, or at the time of the
filing of the complaint.
Section 2. Venue for Complaints filed for Violations of Trade and Industry Laws,
Including the Price Act and its IRR. – Section 1 of this Rule shall apply to all complaints filed by
natural or juridical persons for violations of Trade and Industry Laws and the Price Act and its
IRR.
Section 3. Venue for Formal Charges. – Formal charges shall be filed in accordance with
in Section 1 of this Rule: Provided, That should the office filing the formal charge be a
Provincial Office, the formal charge shall be filed with its mother Regional Office.
Section 4. Change of Venue After the Complaint/Formal Charges Has Been Filed. - After
the complaint/formal charge has been filed but before the mediation stage is finished, the parties
to the case may agree in writing to a change in venue: Provided, however, That this change can
be done only once.
RULE V
COMMENCEMENT OF ACTION
Section 1. Commencement of Action. – (a) In all cases filed under these Rules, the party
initiating the action shall be called the “Complainant” and the opposing party the “Respondent”.
In the case of a formal charge, the initiating office or agency is the complainant.
(b) All cases for violations of the Consumer Act, or of any Trade and Industry Law, or of
the Price Act and its IRR, shall be commenced by filing a complaint or a formal charge, as the
case may be.
(c) The full names of any and all real parties-in-interest, whether natural or
juridical persons, or of the DTI office or agency, shall be stated in the caption of the complaint or
formal charge, as well as in the decisions and orders.
(d) All complaints shall be prosecuted by the complainant or by his/its counsel. All
formal charges shall be prosecuted by the duly authorized officer or representative of the
initiating office or agency of DTI. The respondent shall defend himself personally or by counsel.
Section 2. Essential Elements and Parts of a Complaint.– (a) The following shall be
alleged in the complaint:
(1) 
The names and addresses of the parties and their
capacity to sue or be sued;
(2) 
A statement of relevant facts, including all relevant
dates;
(
3
)
 
A statement of cause/s of action;
(
4
)
 
A statement of law/s violated; and
 (5) 
The relief/s prayed for, and the preliminary order,
preventive measure order, or temporary order sought, if
any.
(b)
The following documents shall be attached to the complaint, to form integral parts
thereof:
(1) 
Clear sworn statements of witness/es;
(2) 
Clear copies of documentary evidence; and
(3) 
A verified statement on any civil, criminal or administrative action that
has been filed or is/are pending, as provided in Section 4, Rule III of this
Order.
(c)
The absence of any one, some, or all of the above shall be a ground for the motu
proprio dismissal without prejudice of the case.
Section 3. Essential Elements and Parts of a Formal Charge. – (a) The following shall be
alleged in the Formal Charge:
(1) 
The names and addresses of the parties;
(2) 
The designation of the violation/offense committed;
(3) 
The act/s and/or omission/s constituting the violation/offense;
(
4
)
 
The approximate date of the commission of the violation/offense;
(5) 
The place where the violation/offense was committed; and
(6) 
The relief/s prayed for, and the preliminary order, preventive measure
order, or temporary order sought, if any.
(b)
The following documents shall be attached to the formal charge, to form integral
parts thereof:
(1) 
Clear sworn statements of witness/es;
(2) 
Clear copies of documentary evidence; and
(3) 
 A verified statement on any civil, criminal or administrative action that
has been filed or is/are pending, as provided in Section 4, Rule III of this
Order.
(c)
The absence of any one, some, or all of the above shall be a ground for the motu
proprio dismissal without prejudice of the case.
Section 4. Form of Complaint and/or Formal Charge. – The complaint or formal charge
shall be legibly printed on legal size paper. Its caption shall state the name and address of the
office with which it is filed, the title of the action, and the words “Adm. Case No. _______”. The
caption shall include the names of the parties, with the identifying words “Complainant” and
“Respondent”.
Section 5. Rule on Suit Against Associations Without Juridical Personality.
– When two or more persons associated in any business, transact such business under a common
name, whether it comprises names of such persons or not, the association may be sued under
such common name.
RULE VI
SERVICE OF PLEADINGS AND OTHER PAPERS
Section 1. Filing and Service of Pleadings. – All pleadings and other papers in connection
with the case shall be filed with the appropriate docketing unit of the Regional office, Provincial
or field office, Area Office, or other appropriate office or agency of the Department, as the case
may be.
Section 2. Service of Summons, Notices, Decisions and Orders. – (a) Summons, notices,
and copies of decisions and orders shall be served on the parties to the case personally by the
duly authorized process server or other officer of the Department or by registered mail.
(b) The serving officer shall submit his return within five (5) days from date of service
thereof, stating legibly in his return, his name, the name of person served, and the date of receipt,
which return shall be immediately attached to and shall form part of the records of the case. If no
service was effected, the serving officer shall state the reason therefor in his return.
RULE VII
PROHIBITED PLEADINGS AND MOTIONS
Section 1. Prohibited Pleadings or Motions. – For purposes of these Rules, the following
pleadings and motions shall be prohibited:
(a) Motion to dismiss, except a motion to dismiss based on lack of
jurisdiction, which must be raised at the earliest opportunity;

(b) Motion for judgment on the pleadings;

(c) Motion for summary judgment;

(d) Motion for bill of particulars;

(e) Motion for extension of time to file any required pleading;

(f) Counterclaim;

(g) Cross-claim;
(h) Reply;
(i) Rejoinder;

(j) Motion to Intervene; and

(k) Memorandum of any kind.

Section 2. Motion for Postponement. – No dilatory motions for postponement shall be
allowed. During the mediation stage, however, the parties shall be allowed a maximum of two
(2) postponements: Provided, That these shall be for the purpose of seriously seeking an
amicable settlement of the case: Provided, further, That such postponements shall cover a period
of not more than a total of thirty (30) days.
RULE VIII
PRESCRIPTION OF ACTIONS
Section 1. Prescription of Actions Under the Consumer Act. – Any complaint of a
consumer (as defined under Section 1 (a), Rule II of this Order), for violation of the Consumer
Act, shall be filed within two (2) years from the time the consumer transaction was
consummated, or the deceptive or unfair and unconscionable act or practice was committed, or in
case of hidden defects, from the date of discovery thereof. After the said period, the filing thereof
shall be barred.
Section 2. Prescription of Actions Under Other Cases. – Any other complaint or formal
charge shall be filed within three (3) years from the date of the commission of the
violation/offense, or if such date is unknown at that time, then within three (3) years from the
date of discovery thereof. After the said period, the filing thereof shall be barred.
RULE IX
PROCEEDINGS BEFORE THE ADJUDICATION OFFICER
Section 1. Docketing of Cases and Assignment to an Adjudication Officer.
– (a) All complaints and formal charges shall be docketed. After docketing, the Head of Office
concerned shall assign the case to an Adjudication Officer.
(b)
The adjudication of any complaint, except one which is initiated by a consumer for
violation of the Consumer Act, is discretionary with the Department, and not a matter of
right for the complainant. Thus, after the docketing and assignment of an administrative
case number, the Head of Office concerned shall determine whether or not the
Department should adjudicate the case, taking into consideration the following:
(i) 
Whether or not the adjudication of the case will aid in the enforcement of the Trade and
Industry Law allegedly violated, and if it does, the extent thereof;
(ii) 
The wisdom, propriety, and expediency of adjudicating the case;
(iii) The other legal remedies available to the parties in settling their dispute/s; and (iv) Whether
or not the subject matter of the case is a priority in the adjudication program of the Department.
(c)
Unless the Secretary determines otherwise, if the Head of Office elects not to
submit the case for adjudication, he shall issue an order to such effect. No reason shall be
given for such elected action, except that it is pursuant to Section 1 (b) of this Rule. The
said order shall not be appealable.
 Section 2. Preliminary Determination/Dismissal Motu Proprio by the Adjudication
Officer. – Upon assignment of the case, the Adjudication Officer shall determine whether:
(a) 
the Head of Office has already elected to adjudicate the case (this is not applicable to
complaints filed by consumers for violations of the Consumer Act);
(b) 
the case falls within the jurisdiction of the Department in accordance with these Rules;
(c) 
the complaint or formal charge is sufficient in form and substance, and a cause of action
or the charge is sufficiently alleged, as the case may be; and
(d) 
the action has not yet prescribed.
Should the Adjudication Officer find that any or some of the essential elements required
for a complaint or formal charge do not exist, or that the complaint or formal charge do not have
the required attachments, he shall motu proprio dismiss the action without prejudice.
Section 3. Issuance of Summons. – If the Adjudication Officer believes, based on the
allegations of the complaint or of the formal charge and the supporting evidence, that there exists
a prima facie case and that same complies with all the requirements heretofore mentioned, he
shall issue a summons to be served on the respondent, copy furnished the complainant.
Summons shall be served by personal service, by registered mail, or by
publication. In case of summons by publication, the same shall be done once in a newspaper of
general circulation, the cost being borne by the complainant.
Section 4. Answer. – The summons shall require the respondent to file a written answer
within ten (10) working days from receipt of the summons.
Section 5. Preliminary Order. – (a) At any time after the commencement of the action and
before judgment, the Adjudication Officer may motu proprio or upon verified application by the
complainant, or by the officer who signed the formal charge, issue a preliminary order requiring
any person to refrain from a particular act or to perform a particular act, if the Adjudication
Officer is satisfied that the commission or the continuance of the act complained of during the
pendency of the action or the nonperformance thereof would probably work injustice to the
complainant or the general public; or that the respondent is doing, threatens or is about to do, or
is procuring or suffering to be done, some act probably in violation of the complainant’s or the
general public’s rights respecting the subject of the administrative action, and tending to render
the judgment ineffectual.
(b)
The Adjudication Officer may require the complainant to file with the office of
the Adjudication Officer, a bond executed to the respondent, in an amount to be fixed by
the Adjudication Officer, to the effect that the complainant will pay to such party all
damages which he may sustain by reason of the preliminary order if the Adjudication
Officer should finally decide that the complainant was not entitled
thereto: Provided, That no bond shall be required in cases initiated by formal charge.
(c)
The preliminary order may be granted with or without prior notice and hearing on
the application for issuance of preliminary order, at the sound discretion of the
Adjudication Officer.
(d)
 The preliminary order may be dissolved fully or partially at anytime by the
Adjudication Officer motu proprio , or upon application by the respondent with or
without prior notice and hearing on the application for dissolution thereof, at the sound
discretion of the Adjudication Officer. The grounds for objecting to, or for a motion for
dissolution, of any injunctive relief under Section 6, Rule 58 of the Rules of Court shall
be applicable.
Section 6. Preventive Measure Order. – At any time after the commencement of the
administrative action and before judgment, the Adjudication Officer may motu proprio or upon
application by the complainant, issue a preventive measure order for the purpose of preventing
the disposition or tampering of evidence, the continuance of acts being complained of, and the
flight of the respondent, as the case may be:
(a)
The seizure of the goods which are the subject of the said adjudication or the
padlocking of the warehouse, building, factory, store, shop, or any other structure where
the said goods are contained or stored; or the withholding of such goods if for any reason
the possession thereof has passed to the Department;
(b) The seizure of paraphernalia, machines, vehicles and the like believed to
have been used in the commission of the offense, or the padlocking of the warehouse, building,
factory, store, shop, or structure where the said paraphernalia, machines, vehicles and the like are
contained or stored; or the withholding of such paraphernalia, machines, vehicles and the like if
for any reason the possession thereof has passed to the Department;
(c)
The padlocking of the business establishment, warehouse, building, factory, store,
shop or any other structure which was used in the commission of the offense;
(d)
The holding in port of any vessel or aircraft which has been used in the
commission of the offense;
(e)
The prevention of the departure from the Philippines of the respondent regardless
of citizenship; and
(f)
Any other preventive measure which is deemed necessary by the Adjudication
Officer.
Section 7. Temporary Order. – Any of the following temporary orders may also be issued by the
Adjudication Officer if the case involves a violation of the Price Act and its IRR:
(a)
Temporary Closure Order (TCO) for a period not exceeding ten (10) days; and
(b)
Temporary Restraining Order (TRO) for a period not exceeding ten (10) days (per
Section 10 (11), Price Act).
RULE X
MEDIATION
Section 1. Statement of Policy. – In applying and implementing the provisions of these
Rules, primary consideration must be given to the need to promote candor of parties and the
Adjudication Officer through the policy of fostering prompt, economical and amicable resolution
of disputes in accordance with principles of integrity of determination by the parties, and the
policy that the decision making authority in the mediation process rests with the parties, pursuant
to R.A. No. 9285 or the Alternative Dispute Resolution Act of 2004.
Section 2. Mediation. - Within five (5) days from the filing of the answer, or from
the lapse of the period to answer if none has been filed, the Adjudication Officer shall issue a
notice of mediation, which shall be served upon each of the parties concerned at least five (5)
days before the holding thereof. During mediation, the Adjudication Officer shall:
a. Explain to all parties the nature of the action;

b. Clarify from the parties the relief/s sought;

c. Encourage the parties to settle the case, and ask for the parties
offers and counter offers;
d. 
In all cases, endeavor to facilitate the amicable settlement by the parties, by stressing on
the advantages thereof, e.g., cost-effective, peace of mind and reliefs;
e. 
Propose to the parties alternative solutions and encourage counter-offers; and
f. 
Resort to such other means toward the speedy and impartial disposition of the case. A
successful mediation shall operate as a dismissal with prejudice of the case and is
immediately final and executory.
Section 3. Compromise and Execution During Mediation. – During the mediation stage,
if the parties agree on an amicable settlement of the case, they shall sign an agreement indicating
the terms and conditions thereof. The agreement shall not be contrary to law, morals, good
customs, public order or public policy. The Adjudication Officer shall render a decision based on
the compromise agreement, which shall immediately be final and executory.
RULE XI
PRELIMINARY CONFERENCE
Section 1. Next Action When There is Failure of Mediation. – (a) Should mediation fail
to resolve the case, the Adjudication Officer shall conduct a preliminary conference to consider
the following:
(1) 
The simplification of the issues;
(2) 
The necessity or desirability of amendments to the pleadings;
(3)
The possibility of obtaining stipulations or admissions of facts and
of documents to avoid unnecessary proof;
(4) 
The limitation of the number of affiant-witnesses; and
(5) 
Such other matters as may aid in the prompt disposition of the case.
(b)
The Adjudication Officer shall have the option of requiring the parties to
simultaneously submit preliminary conference briefs to aid him in the conduct of the
preliminary conference.
 (c)
Thereafter, the Adjudication Officer shall issue a Preliminary Conference Order
stating: (a) the stipulated and/or admitted facts, if any; (b) the issues of law and of fact
agreed upon; and (c) other matters taken up during the preliminary conference.
RULE XII
POSITION PAPER; HEARING
Section 1. Submission of Position Paper and Supporting Evidence. – (a) In lieu of a
formal hearing, the Adjudication Officer shall direct the parties to simultaneously submit their
respective position paper with supporting affidavits and other documentary evidence not later
than fifteen (15) days from receipt of the Preliminary Conference Order.
(b)
The supporting affidavits shall take the place of direct testimony. Affidavits and
supporting documentary evidence which were annexed to the complaint or formal charge,
and the answer, as the case may be, and forming part of the records of the case, are
deemed automatically reproduced for purposes of presentation of evidence and need not
be annexed to the position papers. They shall, however, be distinctly identified for
reference in the position paper.
(c)
The Adjudication Officer, at his option, may set the submission of position paper
and supporting evidence for hearing.
(d)
Upon the submission of the position papers, or upon the expiration of the fifteen
(15)-day period mentioned in paragraph (a) of this section if no position paper has been
filed, or upon termination of the hearing mentioned in the immediately following section,
the case shall be deemed submitted for decision.
Section 2. Hearing. – Should the Adjudication Officer believe that there is/are question/s
of fact, he may set the case for hearing before the same is submitted for decision, purposely to
resolve that issue. During the said hearing, questions may be propounded by parties to each
other’s affiants-witnesses.
RULE XIII
DECISION AND ADMINISTRATIVE PENALTIES/SANCTIONS
Section 1. Decision.-Within fifteen (15) days from the time the case is submitted for
decision, the Adjudication officer shall issue a decision in writing. The decision shall be clear
and concise, and shall contain statements on: (a) the relevant facts of the case; (b) the issue/s
involved; (c) applicable law and/or jurisprudence; (d) conclusions and reasons therefor; and (c)
the relief/s granted, if any, and the administrative penalty/ies imposed, if any.
Section 2. Imposition of Administrative Penalties. – The Adjudication Officer shall have
the power to impose administrative penalties upon the respondent, if warranted, and even if these
have not been prayed for by the complainant, to wit:
(a) 
For the violation of the Consumer Act:
(1)
The issuance of a Cease and Desist Order (CDO), which shall be embodied in the
decision: Provided; however, That such order shall specify the acts that the respondent
shall cease and desist from and shall require him to submit a report of compliance
therewith within a reasonable time;
 (2)
The acceptance by the Adjudication Officer of a voluntary assurance of
compliance or discontinuance from the respondent which may include any or all of the
following terms and conditions:
2.1 an assurance to comply with the provisions of R.A. No.
7394 and its implementing rules and regulations;
2.2 an assurance to refrain from engaging in unlawful acts
and practices or unfair or unethical trade practices
subject of the adjudication;
2.3 an assurance to comply with the terms and conditions
specified in the consumer transaction subject of the
complaint;
2.4 an assurance to recall, replace, repair or refund the
money value of defective products distributed in
commerce; and
2.5 an assurance to reimburse the complainant
out of any money and/or property in connection with the
complaint, if any, and to file a bond to guarantee
compliance therewith;
Said acceptance does not require as a condition precedent, the consent of the
complainant.
(3)
The restitution or rescission of the contract without damages;
(4)
The seizure and condemnation of the consumer product/s found to be hazardous
to health and safety unless the respondent files a bond issued by an accredited bonding
company, equivalent to ten percent (10%) of the value of the seized or condemned items,
or such other percentage as may be determined by the Adjudication Officer, to answer for
any damages or injury that may arise from the continued use of the product;
(5)
The imposition of an administrative fine in such amount as deemed reasonable by
the Adjudication Officer, which shall in no case be less than Five Hundred Pesos (P/
500.00) nor more than Three Hundred Thousand Pesos (P/ 300,000.00 ) depending on the
gravity of the offense, and the additional administrative fine of not more than One
Thousand Pesos (P/ 1,000.00) for each day of continuing violation; and
(6) Other penalties provided elsewhere in the Consumer Act.
(b)
For the violation of any Trade and Industry Law:
(1)
The issuance of a Cease and Desist Order (CDO), which shall be embodied in the
decision;
(2)
The acceptance by the Adjudication Officer of a voluntary assurance of
compliance or discontinuance from the respondent under such terms and conditions as
may be imposed by the Adjudication Officer. Said acceptance does not require as a
condition precedent, the consent of the complainant;
 (3)
The seizure, forfeiture or condemnation of the products which are the subject of
the offense, as well as the proceeds of the offense;
(4)
The seizure and forfeiture of the paraphernalia and all properties, real or personal,
which have been used in the commission of the offense;
(5)
The imposition of an administrative fine in such amount as deemed reasonable by
the Adjudication Officer, which shall in no case be less than Five Hundred Pesos (P/
500.00) nor more than One Hundred Fifty Thousand Pesos (P/ 150,000.00), plus the
additional administrative fine of not more than One Thousand Pesos (P/ 1,000.00) for
each day of continuing violation. The fine imposed under this Section shall be regardless
of the limits of the criminal fine fixed in the trade and industry law violated;
(6)
The cancellation of any permit, license, authority, or registration which may have
been granted by the Department, or the suspension of the validity thereof for such period
of time as the Adjudication Officer may deem reasonable which shall not however,
exceed one year;
(7)
The withholding of any permit, license, authority, or registration which is being
secured by the respondent from the Department;
(8)
The submission of a recommendation to the LGU concerned, through proper channel, for
the cancellation/suspension of a Mayor’s Business Permit;
11.1 Closure of the business establishment for a period not exceeding one year; 11.2 Ordering
the respondent to recall, replace, repair, or refund the money value of defective products
distributed in commerce; and/or 11.3 Ordering the respondent to reimburse the complainant the
expenses and the costs incurred in prosecuting the case in the Department.

(c) 
For the violation of the Price Act and its IRR:
(1) 
The permanent closure of the establishment;
(2) 
The confiscation/seizure and forfeiture of all products and/or effects subject of the
offense;
(3) 
The confiscation/seizure and forfeiture of all paraphernalia used in the commission of the
offense/crime;
(
4
)
 
The suspension, revocation or cancellation of any permit, license, authority, or
registration issued by the Department;
(5) 
The issuance of a cease and desist order, which shall be embodied in the decision;
 (6) 
Censure;
(7) 
Reprimand; and
(8) 
The imposition of an administrative fine of not less than One Thousand Pesos (P/
1,000.00) nor more than One Million Pesos (P/ 1,000,000.00).
(9) The awarding of nominal and liquidated damages;

(10) Censure; and

(11) Other penalties/sanctions analogous to the above, such

as:
Section 3. Service of the Decision. -A copy of the decision may either be served
personally or by registered mail, to the parties or counsel. If the decision is served on the
respondent by way of publication once in a newspaper of general circulation, the cost thereof
shall be shouldered by the complainant.
RULE XIV
MOTION FOR RECONSIDERATION
Section 1. Motion for Reconsideration. – (a) Cases Filed by Consumers for Violations of
the Consumer Act – Per Article 165 of the Consumer Act, no Motion for Reconsideration is
allowed for said cases.
(b) Cases Filed for Violations of Trade and Industry Laws or of the Price Act and its
IRR – Per Section 13 of E.O. No. 913, only one (1) Motion for Reconsideration is allowed
within the appeal period. The filing of the Motion for Reconsideration shall suspend the running
of the said appeal period, and the number of days lapsed shall be deducted in the computation of
the remaining appeal period.
Should the Adjudication Officer believe that the motion for reconsideration is merely pro
forma and filed manifestly for delay, he shall deny the same in writing. Otherwise, the
Adjudication Officer shall ask the adverse party to file a comment and/or opposition thereto
within ten (10) days from receipt of said order. Upon the lapse of said period, whether with or
without any comment and/or opposition being filed, the Adjudication Officer shall proceed to
resolve the motion.
RULE XV

APPEALS
Section 1. Manner of Appeal. – (a) Under Article 165 of the Consumer Act, an appeal
may be taken from a final judgment or order of the Adjudication Officer which completely
disposes of a case, within fifteen (15) days from receipt thereof. The appeal shall be taken by
filing a Memorandum of Appeal with the Secretary, with Notice of Appeal to the Adjudication
Officer, and with copy duly furnished the adverse party/ies, on any of the following grounds:
(1) 
Grave abuse of discretion;
(2) 
The decision/order is in excess of jurisdiction or authority of the Adjudication Officer;
and
(3) 
The decision/order is not supported by the evidence or there is serious error in the
findings of facts.
(b) To ensure simplicity and uniformity in these Rules, paragraph (a) of this section is
hereby made applicable to appeals from decisions of Adjudication Officers to the Secretary, in
cases filed for violations of Trade and Industry Laws and the Price Act and its IRR.
Section 2. Decision on Appeal. – The Secretary shall decide the said appeal within thirty
(30) days from receipt thereof. His decision on the appeal shall become final and executory if no
further appeal is made within the reglementary period provided by law, as follows:
a. 
If the case falls under the Consumer Act (where the complainant is a consumer), the
further appeal shall be by way of certiorari to the Court of Appeals, pursuant to Section 4,
Rule 65 of the Revised Rules of Court, which must be filed by the appellant within sixty
(60) days from receipt of the decision to be assailed in the Court of Appeals.
b. 
If the case falls under any Trade and Industry Law (E.O. No. 913) or under the Price Act
and its IRR, the further appeal shall be made to either:
1. the Office of the President; or to the
2. Court of Appeals under Rule 43 of the Revised Rules of Court.
Section 3. Delegation of the Secretary’s Appeal Function. – The Secretary
may delegate to subordinate officer/s his function of reviewing and deciding said appeals from
decisions/final orders of Adjudication Officers.
RULE XVI
EXECUTION OF DECISIONS
Section 1. When Decision Becomes Final and Executory. – All decisions shall become
final and executory when all periods for Motion for Reconsideration and Appeal provided in
these Rules, whether taken or not, shall have lapsed.
Section 2. Execution. – (a) As soon as a decision becomes final and executory, the
Adjudication Officer shall, either on motion of the interested party or motu proprio, issue an
Order of Execution with the corresponding Writ of Execution, requesting the proper Sheriff’s
Office to execute said decision. No deputation is necessary.
(b) When there is a need to deputize and enlist the assistance of public officers and
government agencies (other than the Sheriff’s Office), or private individuals and entities, the
Adjudication Officer may deputize anyone of them, and the deputation shall take effect as soon
as the said officers, agencies, individuals, and entities give their consent to their deputation.
RULE XVII
OTHER PROVISIONS
Section 1. Treatment of Pending Cases. – All cases (for violations of the Consumer Act,
or Trade and Industry Laws, or the Price Act and its IRR), which are pending with the various
DTI offices and agencies on the date this Order takes effect, shall continuously be adjudicated in
accordance with the rules of procedures and designations existing immediately prior to the
effectivity of this Order: Provided, however, That to ensure uniformity and a smooth transition,
the DTI-National Capital Region shall observe the existing procedures being observed by the
other DTI Regional Offices and Provincial Offices in the mediation and adjudication of cases
involving violations of the Consumer Act, Trade and Industry Laws, and the Price Act.
 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 circumstance
is declared invalid or unconstitutional, the remainder of this Order shall not be affected by such
declaration.
Section 3. Repealing Clause. – (a) The following DTI orders are hereby repealed:
(1) 
Ministry Order No. 69, Series of 1983, entitled “Rules and regulations governing
administrative actions for violations of trade and industry laws”, issued on 25
November 1983: Provided, however , That the list of “Trade and Industry Laws”
embodied in Section 1 thereof, including all the amendments to said list, is hereby
excluded from the said repeal.
(2) 
Department Order No. 13, Series of 1989, entitled “Authorizing Provincial
Directors to sign Statements of Violation, for violations of Trade and Industry
Laws within their respective province”, issued on May 19, 1989.
(3) 
Department Order No. 25, Series of 1989, entitled “Expanding the Authority of
DTI Provincial Directors in the Enforcement of Trade and Industry Laws”, issued
on July 6, 1989.
(4) 
Department Order No. 124, Series of 1992, entitled “Appointment of Acting
Consumer Arbitration Officer under Republic Act No. 7394, otherwise known as
Consumer Act of the Philippines”, issued on October 28, 1992.
(5) 
Department Administrative Order No. 3, Series of 1993, entitled “Amending
Department Order No. 124, Series of 1992”, issued on June 30, 1993.
(6) 
Joint DTI-DOH-DA Administrative Order No. 1, Series of 1993, entitled “Rules
and regulations implementing the provisions of Chapter III, Title V of Republic
Act No. 7394, otherwise known as the Consumer Act of the Philippines”, issued
on December 27, 1993, insofar as it applies to the DTI .
(7) 
Department Administrative Order No. 10, Series of 1995, entitled “Designation
and jurisdiction of Consumer Arbitration Officer/Alternate Acting Arbitration
Officer”, issued on October 26, 1995.
(8) 
Department Administrative Order No. 4, Series of 1997, entitled “Venue of
actions involving violations of the Consumer Act (R.A. 7394)”, issued on June
17, 1997.
(9) 
Department Order No. 89, Series of 1998, entitled “Expanding the Authority of
the Consumer Arbitration Officers (CAO) to Include Mediation and Adjudication
of Administrative Cases Involving Violations of Trade and Industry Laws under
Executive Order No. 913”, issued on December 14, 1998.
(10) 
 The following sections of Department Administrative Order No. 2, Series of
2002, entitled “Defining the responsibilities and liabilities of manufacturers,
importers, traders, wholesalers, distributors, retailers and or their agents, with
regard to products covered by mandatory product certification and prescribing
penalties for violation thereof”, issued on July 1, 2002:
Section 8 - entitled “Adjudication of Cases”;
Section 9 - entitled “Preliminary and Preventive Orders”;
Section 10 - entitled “Procedure for Filing an Appeal”;
Section 11 - entitled “Penalties and Sanctions”;
Section 13 - entitled “Execution of Final Orders/Decisions/ 

Judgments; and
Section 15 - entitled “Prescription”.

(11) 
The following sections of Department Administrative Order No. 8, Series of
2002, entitled “Rules and Regulations Implementing Article 53 of the Consumer
Act of the Philippines (R.A. 7394) in Relation to Section 8, Rule II, Chapter I,
Title III of Department Administrative Order No. 2, Series of 1993 Prohibiting
Chain Distribution Plans or Pyramid Sales Schemes in the Sale of Consumer
Products”, issued on August 28, 2002:
Section 3 – entitled Administrative Proceedings; and Section 4 – entitled “Administrative
Proceedings under E.O. 913 and M.O. 69”.
(12) 
The following Sections of PSB Administrative Order No. 6, Series of 2005,
entitled “Philippine Shippers’ Bureau (PSB) – Revised Rules on Freight
Forwarding”, issued on November 23, 2005:
Section 42 – entitled “Modes of commencing
administrative adjudication
proceedings”. Section 43 –
entitled “Mediation; three (3)
types of decision
renderable by the Director of PSB”. Section 44 – entitled
“Elevation of case”. Section 45 – entitled “When summons not necessary”.
Section 46 – entitled “Probable cause rule”. Section 47 – entitled “Additional
powers”.
(b) All other Department Administrative Orders, Department Orders, other issuances, or
parts thereof which are inconsistent with this Order are hereby likewise repealed or amended
accordingly.
Section 4. Effectivity. – This Order shall take effect fifteen (15) days after full
publication in two (2) newspapers of general circulation.
Makati City, July ________, 2006.
PETER B. FAVILA
Secretary
Recommended by:
ZENAIDA CUISON MAGLAYA VICTORIO MARIO A. DIMAGIBA
 Undersecretary for Consumer
Director Welfare and Trade
Regulation Group Bureau of Trade
Regulation and Consumer
Protection and Officer-in-Charge
Office of Legal Affairs
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