Consumers should be provided with payment options when purchasing products and services noting the practice of a number of retailers in requiring installment only sales, the Department of Trade and Industry (DTI) sees the need to reiterate the applicable provisions of the Consumer Act of the Philippines and other relevant laws to ensure that consumers are adequately protected. A series of public consultations have been conducted prior to the issuance of the draft guidelines for Payment Options on the Purchase of Consumer Products and Services.

From January 2019 to January 2021, the DTI received 3,060 complaints from consumers on the installment only payment option that motorcycle dealers and shops implement. Complaints reported that the seller of motorcycles insist that they pay in installment even if they are willing to pay the full value in cash.

To address such concern, the DTI prepared a draft Memorandum Circular that will promote payment options in consumer transactions and prohibit the selling of goods and services on installment basis only.

DTI Consumer Protection Group (CPG) Undersecretary Atty. Ruth B. Castelo explains, “The DTI steps in to address this consumer concern on limiting his/her options to pay not only for motorcycles, but also for other products and services that he/she needs.”

DTI-CPG Assistant Secretary and DTI-CPAB Concurrent OIC Atty. Ann Claire C. Cabochan explains, “Through this circular, the DTI also aims to emphasize the consumer’s right to choose and have access among the various options in purchasing products and services, including the mode of payment.”

Under Article 52 of the Consumer Act (RA 7394), “An act or practice shall be deemed unfair or unconscionable whenever the producer, manufacturer, distributor, supplier or seller, by taking advantage of the consumer’s physical or mental infirmity, ignorance, illiteracy, lack of time or the general conditions of the environment or surroundings, induces the consumers to enter into a sales or least transaction grossly inimical to the interests of the consumer or grossly one-sided in favor of the producer, manufacturer, distributor, supplier or seller.”

For submission of comments and suggestions, send an email to The DTI shall accept comments and suggestions on the draft Memorandum Circular on Guidelines for Payment Options on the Purchase of Consumer Products and Services until 26 February 2021. ♦

Date of Release: 24 February 2021