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Section 1. General Principles and Objectives

WHEREAS, Section 23 Article II of the 1987 Philippine Constitution declares that the State shall encourage non-governmental,  community-based,  or sectoral organizations that promote the welfare of the nation;

WHEREAS,  pursuant  to  the  Letter  of  Instructions  No.  1337,  the administrative  and/or quasi-judicial  bodies where certain governmental  action or activity   affecting   consumers   are  pending   action  and/or  decision   must  first determine whether any consumer organization  desiring to participate in or enter its appearance is truly representative of the sector it represents;

WHEREAS, the same issuance provides that “all consumer organizations will be required to register with the Bureau of Domestic Trade”, a Bureau within the Department  of Trade and Industry (DTI) which is now the Consumer Protection and Advocacy Bureau (CPAB);

WHEREAS, Article 2 (e) of Republic Act No. 7394, otherwise known as the Consumer Act of the Philippines, declares as basic State policy to implement measures to achieve involvement of consumer representatives in the formulation of social and economic policies;

WHEREAS,  Article  156  of  the  Consumer  Act  of  the  Philippines,  further provides that the DTI shall establish procedures for meaningful participation by consumers or consumer organizations (COs) in the development and review of department rules, policies and programs;

WHEREAS,   the  DTI,   recognizing   the  role   of  consumer   organizations, conducted  on 09 October  2000 Tri-Sectoral  Conference  on Consumer  Welfare where action plans were developed focusing on the following five areas, viz.: (i) Tri-Sectoral  Cooperation  and Organization,  (ii) Consumer  Education,  (iii) Consumer  Issues,  (iv)  Consumer  Groups'  Best  Practices,  and  (v)  Business Sector's Best Practices;

WHEREAS, the DTI recognizes the valuable contributions of consumer organizations  in  the  area  of  consumer  protection.  Consumer  organizations  in turn, have supported the DTI’s programs and initiatives such that the latter aims to recognize their valuable work and provide motivation and incentives for the sustenance of their undertakings;

WHEREAS, the DTI, considers recognition of consumer organizations as an approach consistent with its thrust to develop and empower consumers;

WHEREAS, since LOI No. 1337 was promulgated, several rules, regulations, and guidelines implementing the same were issued by DTI;

WHEREAS, in view of recent developments,  it is high time to rationalize the requirements for recognition of COs with the DTI to keep pace with the current circumstances and to keep it aligned with the Ease of Doing Business program of the DTI, by consolidating all DTI issuances relevant to LOI No. 1337 and revising the pertinent provisions thereof;

NOW THEREFORE,  in consideration  of the above, the following are hereby prescribed and promulgated for the compliance, guidance and information of all concerned.

Section 2. Objectives. This DAO shall have the following objectives:

1.    To encourage consumers to establish active COs;

2.    To lay down the guidelines and procedures for the recognition of the COs by DTI;

3. To  ensure  that  only  legitimate  COs  that  advocate,  promote  and  advance consumers’ interests and welfare should be recognized;

4. To develop and empower COs to champion the welfare of consumers;

5. To develop effective partnership between government and COs; and

6. To establish guidelines for the grant of benefits and the availment of project assistance to sustain COs’ programs or projects that positively contribute to the promotion of consumers’ interests.

Section 3. Scope and Coverage. The following Guidelines shall apply for the recognition  of COs whether  local or national,  whether  previously  accredited  by the DTI or otherwise.


Section 1. Title. This DAO shall be known as “Guidelines on the Recognition of Consumer Organizations”, hereinafter referred to as Guidelines.

Section 2. Definition of Terms. For purposes of these Guidelines, the following terms shall be defined as follows:

2.1 “Administrative  cost” refers to the amount/fees incurred in connection with the application for recognition as consumer organization such as fees for certification/s  or certified  true copy of the Certificate  of Recognition,  and cost of reproduction. These costs are non-refundable.

2.2    “Certificate of Recognition (COR)’’ refers to the document issued by the appropriate DTI authority attesting that CO named therein has satisfactorily met all the requirements and qualifications for recognition of COs.

2.3 “Commercial   endeavor”   refers  to  profit-making   activities   that  are  not incidental to the CO operations pursuant to their purposes.

2.4 “Political endeavor” refers to partisan political activities.

2.5 “Consumer”  means  a  person  who  is  a  purchaser,  lessee,  recipient  or prospective  purchaser, lessor or recipient of consumer products, services or credit.

2.6 “Consumer  Assistance  Facility (CAF)” refers to any facility through which the CO can provide assistance to members or non-members on consumer- related concerns.

2.7 “Consumer   Organization (CO)”  means  an  organized   and  independent group  that  represents  a substantial  number  of consumers  where membership is voluntary and whose primary objective is to protect the consumer  rights  and  promote  their  interests  and  welfare.  These  are domestic organizations or associations, duly registered with the Securities and Exchange Commission (SEC) or Cooperative Development Authority (CDA).

2.8  “DTI” refers to the Department of Trade and Industry.

2.9 “DTI-CPAB”  refers  to Consumer  Protection  and Advocacy  Bureau  which shall be the Project Manager under these Guidelines.

2.10   “DTI-FTEB” refers to the Fair Trade and Enforcement Bureau.

2.11   “DTI-PO”  refers to the DTI Provincial  Office that has jurisdiction  over the place of business of the applicant CO as indicated in its Articles of Incorporation.

2.12  “DTI-RO” refers to the DTI Regional Office that has supervision over the concerned DTI-PO.

2.13   “Director” refers to any DTI Regional/ Provincial/ CPAB/ FTEB Director or Officer-in-Charge.

2.14   “Members” refer to the individual members of the CO.

2.15   “Project Assistance” refers to assistance granted to a qualified RCO.

2.16   “Recognition”  refers to the determination  made by DTI that COs comply with the requirements set in these Guidelines, as expressly stated in a corresponding attestation or certification to that effect.

2.17   “Recognition Assessment Report (RAR)” refers to the report or findings of the appropriate DTI office on the application for recognition of the CO.

2.18 “Recognized  Consumer  Organization”  (RCO) refers to a consumer organization  that has met the requirements  set under this Order and has been issued a COR.

2.19   “Secretary”   refers  to  the  Secretary   of  the  Department   of  Trade  and Industry.

Section 1. Categories  of Consumer  Organizations.  A consumer organization may be categorized as:

1.1 Local Consumer Organization.

A CO based in a municipality with at least seven (7) individual members or based in  a  city  with  at  least  twenty  (20)  individual  members  at  the  time  of  filing  of application for recognition.

To be recognized as local CO, it must have complied with the requirements  set forth in this Order and should have a proven track record and actively operated as such, for the last two (2) years prior to the date of application with DTI-CPAB or DTI-PO.

1.2 National Consumer Organization.

A CO, recognized  by DTI, based either in Luzon, Visayas or Mindanao, with at least  forty  (40)  individual  members,  and  with  at least  one  (1)  active  affiliated chapter located in each of the other two (2) major geographical areas.

The   national   CO   may   nominate   its  local   CO   to  participate   in  meetings, workshops, trainings and other consumer related activities of DTI.


Section  1.  Documentary   Requirements.   The  consumer  organization   shall submit/ comply with all the following documentary requirements:

1.1 New Applicant

A.   Currently DTI-accredited CO

1.1.1  Completely  filled-out  application  form  with each  page  signed  by the CO President or its authorized officer and duly notarized or attested by the DTI-CPAB/DTI-PO Director;

1.1.2  Certificate of Accreditation issued by the DTI; and

1.1.3  Copy  of  audited  financial  statements  for  the  last  two  (2)  years stamped received by SEC/ CDA; or Affidavit on the current financial position of the CO signed by the President and the Treasurer stamped received by SEC/ CDA.

1.1.4  Other pertinent documents which the DTI may require.

B.   No Previous Accreditation with DTI

1.2.1  Completely  filled-out  application  form  with each  page  signed  by the CO President or its authorized officer and duly notarized or attested by the DTI-CPAB/ DTI-PO Director;

1.2.2  Certified  true  copy  of  the  SEC/  CDA  certificate  of  registration, articles of incorporation or articles of cooperation, and its by-laws;

1.2.3  List of trustees, officers and members of the CO, and their contact
details;

1.2.4  Certificate of no derogatory record or its equivalent issued by SEC
or CDA;

1.2.5  Proof of active participation for the cause of the consumers for at least two (2) years (certificate of participation, clippings, photos, videos, publications, public consultations attended);

1.2.6  Copy  of  audited  financial  statements  for  the  last  two  (2)  years stamped received by SEC/ CDA; or Affidavit on the current financial position of the CO signed by the
President and the Treasurer stamped received by SEC/ CDA; and

1.2.7  Undertaking   by  the  CO  applicant  of  their  independence   from business, industry and/or political party.

1.2.8  Other pertinent documents which the DTI may require.

2.1 Renewal

2.1.1  Completely  filled-out  application  form  with  each  page  signed  by the CO President or its authorized officer and duly notarized or attested by DTI-CPAB/DTI-PO Director;

2.1.2  Latest General Information Sheet (GIS) duly issued by SEC or CDA;

2.1.3  List of trustees,  officers  and  members  of the CO,  and  their  contact details;

2.1.4  Certificate of no derogatory record or its equivalent issued by SEC or
CDA;

2.1.5  Copy of the recent audited financial statements  stamped received by
SEC/ CDA; and

2.1.6  Undertaking by the CO applicant of their independence from business, industry and/or political party.

Section 2. Where to File Application for Recognition.

2.1 DTI-CPAB

- For application of COs based in NCR
- For application as NCO

2.2 DTI-PO

- For application of COs based in the provinces

Application  for Recognition  of CO may also be filed through the DTI website or Consumers’ Portal, once available.

Section  3.  Fees.  –  No  processing  fee,  except  administrative  fees,  shall  be collected in the filing of application for Recognition of Consumer Organization. Schedule of fees is attached as “Annex A”.


Section 1. Application for Recognition whether new or renewal, shall only be considered filed upon submission of all documentary requirements.

Section 2. Validation of Documentary Requirements and Ocular Inspection. Within five (5) working days, upon receipt of the application form together with complete documentary requirements, the DTI-CPAB or DTI-PO shall validate the submitted   documentary   requirements   and  conduct  ocular  inspection   in  the presence of any of the officers or members of the CO to confirm the existence and operation of the applicant CO.

Section  3. Recognition  Assessment  Reports  (RAR).  After the ocular inspection, the DTI-PO shall prepare and submit the RAR together with all the documentary requirements to their respective RDs for his/her evaluation and appropriate action. DTI-CPAB shall prepare the RAR for NCOs and NCR-based applicants.

Section 4. Processing Time. The application for recognition shall be processed within fifteen (15) working days, provided no extensions have been requested in writing or that no interruption of the period has occurred in accordance with the immediately succeeding section, from the date the application was filed with DTI- CPAB or DTI-PO.

Section 5. Interruption of Processing Time. In the event that DTI shall require additional  documents  to supplement  earlier submission,  the processing  time of fifteen (15) working days shall be interrupted  by not more than five (5) working days. For meritorious reasons and upon express written request, DTI may grant an extension of another five (5) working days to submit supplemental documents. Upon compliance, the processing time shall resume. Failure or refusal of the CO applicant to submit the required supplemental documents within the 5-day period shall  result  in the  disapproval  or abandonment  of the  application  immediately upon  the  expiration  of  the  said  5-day  period.  Notice  of  disapproval  shall  be issued to the CO applicant in accordance with Section 7 hereof.

Section  6.  Automatic  Recognition.  After  the  lapse  of  the  processing  time specified herein and no action has been taken by the appropriate DTI office, the application shall be deemed approved, provided that all the documentary requirements have been complied with.

Section  7. Appeal from the Disapproval  of the Application.  The concerned DTI Office shall inform the applicant CO in writing of the action taken on their application for Recognition. In case the application for recognition is disapproved, the applicant may file a Motion/Letter for Reconsideration with the DTI-CPAB Director, in case of NCOs and NCR-based applicants, or DTI-Regional Director, in case of LCOs outside of NCR, within ten (10) working days from receipt of disapproval.  The disapproval  of an application  shall provide  in detail the basis and grounds for disapproval. If the said Motion/ Letter is denied, such denial may be appealed to the Office of the Secretary within fifteen (15) working days from receipt of the notice of such denial. The decision of the Secretary shall be final and executory.

The appeal shall be accompanied by a verified Memorandum which shall contain concise  statement  of  facts,  the  grounds  for  appeal,  as  well  as  supporting documents. The grounds for appeal shall be limited to grave abuse of discretion and serious errors in the findings of fact. Failure to file the appeal within the prescribed  period  shall render  the decision  of the DTI-CPAB/  DTI-RO  Director final and executory.


Section 1. Issuance of Certificate of Recognition  (COR). When the applicant meets  all  the  requirements   for  recognition,  the  DTI-CPAB  or  DTI-RO  shall approve the application and issue a system-generated  Certificate of Recognition (COR) electronically  signed by the DTI Secretary,  endorsed  by the appropriate DTI Director.

The COR shall consist of the following:

1.1 Name of the recognized consumer organization and its complete address;

1.2 Date and place of issue;

1.3 Validity period of the Certificate of Recognition;

1.4 Consumer Organization Recognition Number (CORN); and

1.5 Statement that the Certificate of Recognition is non-transferable.

If there is a change in corporate name of the RCO, a new COR will be issued for the remaining  validity period. The CO shall advise DTI, by furnishing a copy of the  Certificate  of  Approval  issued  by  SEC/  CDA,  of  any  amendment  on  its company profile, within five (5) working days from receipt of the Certificate of Approval issued by SEC/ CDA.

The CO has the option whether to pick up or have the COR delivered to their principal business office.

If the CO opted to have it delivered, the CO shall provide a self-addressed pouch or envelope  upon submission  of the application  form and documentary requirements.

Section 2. Validity Period of the Certificate of Recognition. The Certificate of Recognition shall be valid for a period of three (3) years unless sooner cancelled or suspended  on grounds  under  Article  VIII hereof.  In case the applicant  is a currently accredited CO under previous rules and guidelines, the 3-year validity period shall reckon on the date of issuance of the Certificate of Recognition.

Section  3. Renewal  of Certificate  of Recognition.  The recognized  CO shall apply for renewal of its COR in accordance with Article IV and Article V of these Guidelines at least thirty (30) days prior to the expiration of the COR to:

3.1 DTI-CPAB

- For application of COs based in NCR
- For application as NCO

3.2 DTI-PO

- For application of COs based in the provinces

Application  for Recognition  of CO may also be filed through the DTI website or
Consumers’ Portal, once available.



Section  1. Responsibilities  of the Recognized  Consumer  Organization.  As recognized CO, the following are their responsibilities:

1.1 Participate in government hearing/ consultation programs and activities in formulating  policies  regarding  consumer  welfare  and  protection  and recommend   amendments,   if  any,  on  existing  consumer-related   laws  or policies.
1.2 Promote equality among its members or non-members regardless of gender, race, religion, or background.
1.3 Timely   advise   DTI,   other   concerned   government   agencies   and   the consumers about any pressing issue/s that violate/s the Consumer Act of the Philippines, Fair Trade Laws (FTLs) and other consumer related laws.
1.4 Establish a Consumer Assistance Facility (CAF) to provide assistance on consumer-related concerns.
1.5 Initiate consumer-related activities and conscientiously advocate respect for consumer  rights including  consumer  education  activities  and dissemination of consumer-related information materials.
1.6 Submit highlights of accomplishments, in narrative, photo/ video or media release, to DTI-CPAB or DTI-PO every semester. For January-June, reports shall be submitted not later than July 30. For July-December, reports shall be submitted not later than January 30 of the following year.
1.7 Submit   copy   of   the   yearly   audited   financial   statements   and   General
Information Sheet (GIS) duly stamped received by SEC/ CDA.
1.8 Submit   price   monitoring   reports/   data   of  basic   necessities   and  prime commodities and compliance of business establishments on Fair Trade Laws (FTLs) to populate the data by DTI in its price monitoring activities, subject to the execution of a MOA with concerned DTI Office.
1.9 Participate actively in the annual celebration of the World Consumer Rights Day  every  15th   day  of  March  and  the  Consumer  Welfare  Month  every October.

The concerned DTI Office shall ensure compliance of RCOs’ responsibilities.


Section 1. Grounds for Suspension  of the Certificate  of Recognition.  After due notice and hearing, the concerned DTI Director shall suspend the CO’s Recognition   for   noncompliance   of   the   responsibilities   of   recognized   COs provided in Article VII of this Order.

A  CO  may  be  suspended  for  a  period  of  one  (1)  month  to  six  (6)  months depending on the number of non-performance of responsibilities they incur as specified in Article VII:

Period of Suspension	Non-performance committed
1 month	Any 2
2 months	Any 3
3 months	Any 4
4 months	Any 5
5 months	Any 6
6 months	All items from 1.1 to 1.7

After the lapse of the period of suspension,  a Notice of Reinstatement  shall be issued  and the Certificate  of Recognition  shall be reinstated  for the remaining period of its validity.

Section 2. Cancellation of the Certificate of Recognition. After due notice and hearing, the concerned DTI Director may cancel the Certificate of Recognition on any of the following grounds:

2.1 Material misrepresentation or falsehood in the documentary requirements submitted in the application for recognition or renewal;
2.2 Commission   or  omission  of  any  act  by  the  CO  which  are  inimical  or prejudicial to the interest of its members and or the consumers in general;
2.3 Promoting business enterprises that engage in activities that violate the provisions  of the Consumer  Act or any other consumer-related  laws, rules and  regulations   or  endorsing  a  product  of  or  granting  awards  to  said business enterprises;
2.4 Receiving any monetary or material support that may compromise the COs independence.
2.5 Divulging  confidential  information   that  may  be  detrimental  to  consumer interest;
2.6 Incurring of at least two (2) suspensions within 12 months; and
2.7 Engaging primarily in commercial activities, not incidental to their operations, and/or political endeavors or analogous circumstances.

RCOs,  whose  certificate  of  recognition  was  cancelled  due  to  the  preceding reasons,   may   apply   for  recognition   after   one  (1)  year   from   the  date   of cancellation.

In case  the  SEC/CDA  Certificate  of Registration  has  been  cancelled,  the  CO shall  furnish  DTI  a  copy  of  the  SEC/CDA  Certificate  of  Cancellation.   The cancellation of the CO’s SEC/CDA Certificate of Registration shall automatically result in the cancellation of its Certificate of Recognition.


Section  1. Complaints  Handling.  Complaints  handling  shall  only  commence upon filing online or before the nearest DTI Office, of a sworn or verified report or complaint against the CO by any individual/ organization, of by DTI-CPAB/RO in the  form  of  a  formal  charge.  Complaints  shall  be  filed  within  30  days  from discovery  of  violation.  Except  for  the  said  prescriptive  period,  the  rules  and procedure concerning complaints, petitions, or formal charges for suspension or cancellation of Certificate of Recognition shall be governed by Department Administrative Order No. 7, Series of 2006, including all future amendments, modifications,  or revisions thereof, and the penalties under Executive Order No.
913, series of 1983, as amended.  The filing of a complaint,  petition,  or formal charge  for suspension  or cancellation  of recognition  in accordance  with these Rules  shall  not  bar  the  filing  of appropriate  civil  and/or  criminal  action  in the proper court.
Sworn  or verified  complaints  against  local  COs  shall  be handled  by DTI-ROs while complaints against local COs in NCR and those against National CO, shall be handled by DTI-FTEB.


Section 1. Participation  of Recognized  Consumer  Organization.  Only recognized  consumer  organizations  shall  be  endorsed  by  DTI  in  any administrative, legislative, or quasi-judicial bodies including national, and local special bodies as specified in the Local Government Code (RA 7160).


Section  1. Benefits  for Recognized  Consumer  Organizations.  These Guidelines   also   aim   to   recognize   the   valuable   work   that   the   consumer organizations have been doing. In order to motivate RCOs and sustain their activities/ undertakings, DTI grants them benefits enumerated in Annex B.

Section 2. Project Assistance for Qualified RCOs. In order to further their activities and programs, DTI may provide project assistance to RCOs, subject to existing government budgeting, procurement, and auditing rules and regulations. All RCOs may apply for available project assistance provided they meet the qualifications and criteria set forth in the Guidelines to be prepared by DTI.

Towards  this end, DTI will publish  in the website  or in the Consumers’  Portal Notice/  Call for Nomination  for Project  Assistance.  Thereafter,  the RCOs  may submit their application for Project Assistance to the respective DTI Office.

Section 3. Sources of Project Assistance.  Project assistance  maybe granted to qualified RCOs subject to availability of funds whether sourced locally or internationally.


Section 1. Transitory  Provision.  Upon the effectivity  of this Order, all current DTI accredited Consumer Organizations are encouraged to apply for Recognition in accordance  with the provisions  of this Order. All certificates  of accreditation issued in accordance  with previous rules and guidelines shall remain valid until the expiration of the said certificates, without prejudice to the submission of new application  for recognition  in accordance  with these Guidelines  prior to or after the expiration thereof.

Section  2. Repealing  Clause.  All orders,  issuances,  rules  and regulations  or parts  thereof  pertaining  to  the  accreditation  of  consumer  organization inconsistent herewith are hereby repealed or amended accordingly.

Section 3. Effectivity. This Order shall take effect thirty (30) days after its publication in two (2) newspapers of general circulation.

Signed this 29th day of December 2017. Makati City, Philippines.

(SGD) ATTY. TEODORO C. PASCUA Undersecretary  Consumer Protection   Group Department of Trade and Industry

(SGD) ZENAIDA CUISON MAGLAYA Undersecretary  Regional Operations Group Department of Trade and Industry